July 28, 2008

ER-Telecom Selects AudioCodes Residential VoIP Media Gateways; Scaleable Deployment of Over 100,000 MP-202 Media Gateways

LOD, Israel, July 28, 2008 (PRIME NEWSWIRE) -- AudioCodes (Nasdaq:AUDC), a leading provider of Voice over IP (VoIP) technologies and Voice Network products, today announced that ER-Telecom, a Russian telecommunications company, has chosen to deploy the MediaPack(tm) MP-202 Telephone Adapter into their network. The MP-202 is a member of the AudioCodes MediaPack(tm) series of analog VoIP gateways.

In addition to current deployments of AudioCodes' trunking business gateways, ER-Telecom will be implementing the MP-202 residential gateway into their network. This Mediant residential gateway offers local and globally based operators and system integrators full interoperability with leading Softswitches and SIP application Servers, exceptional voice quality, feature-richness and increased security. The MP-202 is a 2-line SIP gateway with an internal router consisting of DHCP, NAT and PPPoE capabilities which enables subscribers to connect to their home PC or LAN hub/switch. By utilizing automatic software and configurational upgrades through periodic network updates, the MP-202 is designed for mass deployment while allowing operators to control their operational expenses.

"AudioCodes is a reliable company that provides advanced VoIP equipment," stated Sergey Gusev, Deputy Director at ER-Telecom. "After some final testing with a range of similar devices we selected AudioCodes and look forward to working with them."

"We are pleased to join forces with ER-Telecom and add our best-of-breed, feature-rich media gateways to their growing network. Our collaboration with ER-Telecom is expected to increase AudioCodes' footprint within the Russian market," stated Lior Aldema, Vice President of Marketing and Product Management at AudioCodes. "Our offering of both business and residential gateways provides global service providers a high level of voice quality technology and unique advantages in the marketplace."

About ER-Telecom

CJSC ER-Telecom Holding, established in 2006 in Perm (formerly CJSC ER-Telecom), provides a broad range of telecom services: cable TV "Divan-TV", digital TV "Divan-TV Plus", anytime Internet-access for individuals "Dom.ru" and legal entities, telephone services "Gorsvyaz". Today ER-Telecom operates in corporate and private markets of 17 cities in Russia -- Perm, Samara, Volgograd, Volzhsky, Penza, Kirov, Ioshkar-Ola, Kazan, Nizhnekamsk, Naberezhnye Chelny, Tyumen, Izhevsk, Orenburg, Chelyabinsk, Omsk, Novosibirsk, Nizhny Novgorod. According to the Company's estimates, the holding's share in 15 cities (excluding Novosibirsk and Nizhny Novgorod, launched in March, 2008) ranges from 30% to 60% of telecom services market. By the results of 2007 the operator's revenues totaled RUB 1.3 billion, having tripled vs. 2006. ER-Telecom develops in Russian cities branded multi-service city-wide cable networks as a platform for providing telecom services. The networks are built based on the technology fiber-to-the-building (FTTB). The total network length is 6,453 km. The employed technologies include FTTB, Gigabit Ethernet, SDH/PDH, PPPoE.

About AudioCodes

AudioCodes Ltd. (Nasdaq:AUDC) provides innovative, reliable and cost-effective Voice over IP (VoIP) technology, Voice Network Products, and Value Added Applications to Service Providers, Enterprises, OEMs, Network Equipment Providers and System Integrators worldwide. AudioCodes provides a diverse range of flexible, comprehensive media gateway, and media processing enabling technologies based on VoIPerfect(tm) -- AudioCodes' underlying, best-of-breed, core media architecture. The company is a market leader in VoIP equipment, focused on VoIP Media Gateway, Media Server, Session Border Controllers (SBC), Security Gateways and Value Added Application network products. AudioCodes has deployed tens of millions of media gateway and media server channels globally over the past ten years and is a key player in the emerging best-of-breed, IMS based, VoIP market. The Company is a VoIP technology leader focused on quality and interoperability, with a proven track record in product and network interoperability with industry leaders in the Service Provider and Enterprise space. AudioCodes Voice Network Products feature media gateway and media server platforms for packet-based applications in the converged, wireline, wireless, broadband access, cable, enhanced voice services, video, and Enterprise IP Telephony markets. AudioCodes' headquarters and R&D are located in Israel with an additional R&D facility in the U.S. Other AudioCodes' offices are located in Europe, India, the Far East, and Latin America. For more information on AudioCodes, visit http://www.audiocodes.com.

Statements concerning AudioCodes' business outlook or future economic performance; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements'' as that term is defined under U.S. Federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: the effect of global economic conditions in general and conditions in AudioCodes' industry and target markets in particular; shifts in supply and demand; market acceptance of new products and continuing products' demand; the impact of competitive products and pricing on AudioCodes' and its customers' products and markets; timely product and technology development/upgrades and the ability to manage changes in market conditions as needed; possible disruptions from acquisitions; the integration of acquired companies' products and operations into AudioCodes' business; and other factors detailed in AudioCodes' filings with the Securities and Exchange Commission. AudioCodes assumes no obligation to update the information in this release.

AudioCodes, AC, Ardito, AudioCoded, NetCoder, TrunkPack, VoicePacketizer, MediaPack, Stretto, Mediant, VoIPerfect and IPmedia, OSN, Open Solutions Network, What's Inside Matters, Your Gateway To VoIP, 3GX and Nuera, Netrake, InTouch, CTI(2) and CTI Squared are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners.

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 CONTACT:  AudioCodes           Shirley Nakar           +972-3-976-4000           [email protected]