International IP Telephony Opportunities

1. International IP Telephony Opportunities Ingrid Simunic, PhD. Marketing Director February 6, 2003 The Voice of Next Generation NetworksTM

2. VoIP Driving the Future of ILD VoIP Market Momentum VoP Penetration in Long Distance Networks World Wide VoIP Minutes Source: Probe Research VocalTec Communications - Confidential & Proprietary

3. TDM vs VoP Growth Growth Traffic for VoP in international networks Growth in VoP traffic far surpasses growth in TDM traffic VoP replace the TDM international network TDM traffic to see negative growth starting 2004 Source: Probe Research VocalTec Communications - Confidential & Proprietary

4. Deregulation New Revenues The Momentum continues…and is driving Innovation Market Driving Forces Increased Competition Low margins & customer churn Faster Time to Market Lower Ownership Cost NextGen Softswitch Based “Core” Tandem Networks Value-Added Services Calling Cards, IP Conferencing, VoIP VPN, Unified Messaging VocalTec Communications - Confidential & Proprietary

5. Conflicting Drivers of Today’s Competitive Environment Demand for New Revenue Generating Services versus Lower OPEX and CAPEX VocalTec Communications - Confidential & Proprietary

6. GREENFIELD DEPLOYMENTS Quick Time to Market New Revenues Higher Margins High Efficiency Low OPEX EXISTING / INCUMBENT CARRIERS New Revenues Reduce Customer Churn Increase ARPU Lower OPEX Increase Margins Increase Efficiency versus versus versus Conflicting Drivers of Today’s Competitive Environment VocalTec Communications - Confidential & Proprietary

7. Addressing Service Providers’ Needs • Full range of value-added Service offerings on a Single Platform (Voice VPN, Conferencing, Global Call Center, Calling Card, etc) • Quick time to deployment and service operation • Fast Return on Investment (ROI) • Significantly increase profitability • Advanced Softswitch - based Technology Platform • Superior Routing Capabilities • Packet Tandem Switch Architecture (e.g. NLD & ILD Service, Trunk Replacement) • Proven Interoperability and Standards Support • H.323, SIP, MGCP, SS7, etc • Scalable turnkey and easy Customizable System VocalTec Communications - Confidential & Proprietary

8. Single Platform for Innovative Enhanced Services Deploy our int’l/ LD solution today and expand seamlessly on the same open services platform Consumer Services Calling CardPrefix Number (to Service Provider) Association Enterprise Services Voice VPNCentrex (future)One Number (future) Next-Gen/Multimedia Services PC/Web CommunicationsVideo-telephonyPersonal Unified Comm.Presence Web Enabled Contact Centers Web Enabled Call Centers for E-Commerce Basic Carrier Services LD and Intl’ VOIP NetTrunk Replacement Enhanced Carrier Services Exchange Carrier (+IDM) VocalTec Communications - Confidential & Proprietary

9. International / LD Calling • Packet Tandem Switching • Class 4 functionality with reduced capex and opex • Flexible routing, not limited like PSTN to point to point • Centralized and easier management leading to reduced operational costs and faster response to market changes • Moving network infrastructure to IP • Unmatched Interoperability • VT interoperates with 60% of all VoIP ports deployed in virtually every country • Wide origination / termination / routes choices • SS7 connectivity • Homologated SS7 support for international protocols • SS7 certification by telcos worldwide (e.g. DT, FT, Global One, Telecom Italia) • SS7 tunneling (ensures call continuity) • Scalability • Fast ROI VocalTec Communications - Confidential & Proprietary

10. Calling Card Solution • International LD arbitrage • Ethnic minorities will continue to fuel the growth of the industry • Low rates to specific destination w/budget control • Customized language IVRs • The mobile (wireless) market • Youth & business – budget control (not postpaid) • Cost effective for international calls due to high roaming pricing • The Internet • Ease of purchase: virtual pp cc + recharge over the Internet • pp cc for pc2ph • QoS VocalTec Communications - Confidential & Proprietary

11. V-VPN International Origination Termination PSTN PSTN / VoIP PSTN VoIP VPNService Provider Value Proposition VoIP-VPN As The Complete Toll Bypass – Improve Margins • Local PSTN charges are significant! • VoIP-VPN is an ‘end to end’ VoIP solution • VoIP-VPN improves Service Provider’s margins by by-passing the origination and termination PSTN networks VocalTec Communications - Confidential & Proprietary

12. Service Provider On-net On-net Off-net Off-net VoIP VPNBasic Solution Architecture ACME Israel ACME Berlin IP Network VocalTec, Israel VocalTec NY CPE = Customer Premises Equipment VGW = VocalTec GateWay VGK = VocalTec GateKeeper VNM = VocalTec Network Manager VocalTec Communications - Confidential & Proprietary

13. February 1995: Internet Phone March 1997: Invented and developed first gatekeeper July 1999: First deployment of gateway 2000 February 1996: First industry IPO (NASDAQ: VOCL) August 1997: World leading carrier invests in VocalTec April 2001: VocalTec SIP server addresses new markets February 1998: First complete IP Telephony solution (VEA) Deutsche Telekom selects VT as exclusive NGN partner for carrier services 1995 1996 1997 1998 1999 2000 2001 VocalTec Proven Experience • Founded in 1989, the Internet Telephony pioneer • World leader in providing software-driven VOIP solutions • Ongoing technical innovations and leadership in the industry standards VocalTec Communications - Confidential & Proprietary

14. VocalTec Powers the World`s Leading Carriers VocalTec Communications - Confidential & Proprietary

15. www.vocaltec.comOne Executive DriveSuite 320Fort Lee, New JerseyUSA THANK YOU ! VocalTec Communications - Confidential & Proprietary