VocalTec Expands DT Deal

FORT LEE, N.J. -- VocalTec Communications Ltd. (Nasdaq: VOCL), a leading telecom equipment provider offering packet voice solutions for carriers and service providers, today announced it has finalized a $6.2 million deal for additional equipment and maintenance services with T-Systems International Carrier Sales and Services (ICSS), a unit of Deutsche Telekom AG. VocalTec expects the equipment portion of this deal to be fulfilled by the end of Q1 2003. Add-on commitments, which may total an additional $1.5 million, are expected later this quarter. "VocalTec's equipment offers us the best quality voice transmission and an increasing range of services that is an absolute requirement as we continue to expand the Jules Platform," said Detlev Diessner, Senior Executive Vice President, T-Systems International Carrier Sales and Services. The additional purchase of VocalTec equipment represents the second major expansion of T-Systems ICSS' Jules VoIP Platform and reflects an ongoing commitment to meet increasing market demand for wholesale international services. T-Systems ICSS provides its carrier customers with global coverage, full SS7 interconnectivity and guaranteed network quality and reliability. The Jules Platform, which is based on VocalTec's award-winning technology, completed its first major expansion in June 2002, providing greater capacity and a wider range of services for its partner carriers. Deutsche Telekom AG VocalTec Communications Ltd.