HERZLIA, Israel -- Tdsoft Ltd. ("Tdsoft"), a global provider of Voice-over-IP (VoIP) gateways, and VocalTec Communications Ltd. (Nasdaq: VOCL - News; "VocalTec"), a telecom equipment provider offering carrier class packet voice solutions, today announced the closing of the previously announced acquisition among the companies and shareholders of Tdsoft.

At the closing, VocalTec issued to Tdsoft's shareholders 45,259,569 ordinary shares, representing 75% of the total issued and outstanding share capital of VocalTec, in exchange for all of the share capital of Tdsoft. Immediately after such issuance there were 60,346,092 VocalTec ordinary shares outstanding. VocalTec remains a publicly-held company and Tdsoft is now a wholly-owned subsidiary thereof.

The closing of the acquisition took place following approval of the acquisition agreement and related matters by holders of over 97% of VocalTec's shares represented in person or by proxy at a meeting held earlier today.

Tdsoft Ltd.

VocalTec Communications Ltd.