TEL AVIV -- Kayote Networks, Inc., an expert in Voice over IP (VoIP) interconnectivity technology and developer of advanced IP communication services, announced today that it has successfully closed a private funding round of US$2 million. The funds will be used for continued research and development of Kayote’s pioneering VoIP security products to combat the emerging challenge of Spam over Internet Telephony, (SPIT). Kayote is also sponsoring and participating in Jeff Pulver’s VoIP Mission to Israel, 14-15 June 2005 at the Sheraton City Tower Hotel in Ramat Gan, Israel.

“Closing a funding round at this critical time allows us to move forward with our ambitious plans for the VoIP market,” said Dr. Baruch Sterman, CEO of Kayote Networks. “Enabling a secure, integrated and fully interconnected VoIP system is the focus of our efforts and we are continuing to apply our technology expertise to create practical and robust solutions for the emerging mass adoption of VoIP in residential and enterprise markets.”

As VoIP technology becomes more widely deployed, it is becoming apparent that security concerns are of primary importance to widespread adoption of VoIP – particularly in full IP to IP communication scenarios. Kayote’s proprietary technology-based solutions are designed to solve the prevailing problems that exist today in the VoIP world including:

· Interoperability – Protocol cleanup and conversion, NAT detection & traversal, and voice stream manipulation for transcoding, codec enforcement, and DTMF handling. Kayote’s systems also provide access to Packet Cable for Multi-Media (PCMM) triggers to assure Quality of Service (QoS) in Cable environments.

· Security – Hosted and managed VoIP firewall services, Denial of Service (DoS) prevention, demarcation (IP topology masking and full anonymization of call flow), caller-ID authorization and SPIT detection.

· Routing & Peering – Call setup enhancement and quality based routing (QLCR), and advanced Telephone Number Mapping (ENUM) services.

The VoIP Mission to Israel is being organized by pulver.com, who also produce the VON conferences around the world, several times a year. Baruch Sterman will be participating in a panel discussion that will consider “Who Controls Convergence? Carriers, Consumers or the Entrepreneur?”.

Kayote Networks Inc.