ATLANTA -- Verso Technologies, Inc. (Nasdaq:VRSO), a global provider of next generation network solutions, and Aksh Optifibre Ltd. (Aksh) in partnership with Mahanagar Telephone Nigam Ltd (MTNL), the state-owned telecommunications company in India, announced today that they have launched Voice Over Internet Protocol (VoIP) services on a Verso platform in the two largest cities in India, New Delhi and Mumbai. This is the first telco in India to launch such a service.

Combined, the cities have approximately 30 million citizens to whom the services are available. Any subscriber to MTNL's broadband connection can convert their fixed line phone to an IP (internet protocol) phone using an Analog Telephone Adaptor which can be rented from the operator. A phone call from India to the U.S. over the traditional fixed line costs approximately 14.5 cents per minute, but with the new VoIP service, the cost is as low as 2.5 cents per minute, providing more than 80% savings.

Aksh selected Verso solutions to create the next generation voice infrastructure for a new broadband network in India, bringing residential primary line and long distance telephony services to the country. India has over 1 billion citizens, and up to 70% have no access to basic telephone service. Verso's solutions provide access to the Aksh provided VoIP based long distance services as well as traditional switched services through the MTNL network. Aksh and Verso have been working together on this and other projects in India since 2002. The commercial launch of this service in New Delhi and Mumbai is notable in that it is the first of its kind with a Tier One carrier in India. Further, BSNL, the other state owned telco which operates in the other Indian provinces, is expected to offer similar services to its customers though no time frame on a rollout schedule has been discussed.

"Although it took several years longer than expected, Verso-based VoIP services begin for the first time in India. We are proud to be a part of this historic event as this could be the beginning of the largest VoIP deployment worldwide," said Steve Odom, Chairman and Chief Executive Officer of Verso.

"By making high quality, low cost communications services, we believe we will help India better realize the immense potential of its economy," said Dr. Kailash Choudhari, Chairman of Aksh. "Not only do we believe that Verso's VoIP-based solutions are the only solutions that deliver on both the end-user and carrier interconnection requirements while offering the most flexibility and scalability, but we believe these solutions will be the fastest and easiest to implement, largely due to Verso's extensive experience deploying VoIP-based solutions throughout the world. Further, Verso's high level of commitment to the Clarent product line has meant that we can move forward with deployment having confidence in the continuity of the technology," Dr. Choudhari continued.

Verso Technologies Inc. (Nasdaq: VRSO)