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deltathree Partners With Freeserve; The United Kingdom's No. 1 Internet Service Provider

Posted on: Wednesday, 10 March 2004, 06:00 CST

NEW YORK, March 10 /PRNewswire-FirstCall/ -- deltathree, Inc. , a leading provider of SIP-based hosted communications solutions for service providers and consumers worldwide, announced today that it has signed an agreement with Freeserve.com PLC ("Freeserve"), the United Kingdom's No. 1 Internet Service Provider (ISP), to provide Freeserve's PCPhone VoIP Service through deltathree's consumer division, iConnectHere.

deltathree will provide Freeserve customers with a co-branded PCPhone VoIP Service, enhancing Freeserve's current Webphone service, in order to enable Freeserve users to realize dramatic savings on domestic and international phone calls. iConnectHere offers extremely competitive rates with award-winning technology and quality.

The partnership will begin in the second quarter of 2004, with deltathree's iConnectHere PCPhone VoIP service available to Freeserve's 2.5 million customers for calling friends and family located around the world via http://www.freeserve.com/

Calling options will include plans such as the North America 400 plan, which consists of 400 minutes of call time to the US and Canada for only 2.95 British Pound Sterling -- less than 1 pence per minute. All calling plans include free member to member calling, as well as the ability to place calls to any location worldwide based on iConnectHere's low per minute rates. iConnectHere will also provide advanced features and a range of supporting services, such as real-time billing, voicemail from the web and phone, call forwarding, global roaming, and integration with devices.

"deltathree is pleased to launch this important partnership with Freeserve, the number one Internet Service Provider in the United Kingdom. This announcement confirms deltathree's stated strategy of aligning itself with premiere service providers in the global market for telecommunication services. Through iConnectHere we can enable service providers such as Freeserve the ability to deliver their customers high quality PCPhone VoIP services, with advanced functionality, at a fraction of the cost of traditional international telephony service," stated Shimmy Zimels, deltathree's, Chief Executive Officer.

Commenting on the partnership announcement, Caroline Thomas, Portal Strategy & Marketing Director at Freeserve, said, "Freeserve is committed to continuing to offer our customers innovative new products and advanced functionality, as well as the best value on its tools and services. Our partnership with deltathree will enhance the current VoIP offering for Freeserve's users, providing access to an award winning suite of PCPhone VoIP services. deltathree clearly stands out for their ability to provide a complete solution that is comprehensive, high quality and easy to use."

deltathree's PCPhone VoIP solution will be promoted and displayed on the Freeserve website as well as through a dedicated webpage on the Freeserve Portal. Freeserve will also promote deltathree's suite of PCPhone VoIP services to the entire Freeserve access and portal customer base through activities such as online advertising, email newsletters, direct mail, customer magazines, Freeserve CDs as well as online portal content.

About deltathree

Founded in 1996, deltathree is a leading provider of hosted, Session Initiation Protocol (SIP)-based Voice over Internet Protocol (VoIP) products and services. deltathree provides private-label products, including PC-to-Phone, Phone-to-Phone, and Broadband Phone, as well as back-office services such as billing, operations management, marketing support, and network management, to service providers worldwide. deltathree's consumer division, iConnectHere, provides award-winning VoIP products directly to consumers. Our high quality Internet telephony solutions are viable and cost-effective alternatives to traditional telephone services. For more information about deltathree, visit our web site at http://corp.deltathree.com/.

About Freeserve (http://www.freeserve.com/)

Freeserve is part of the Wanadoo group. Wanadoo, a subsidiary of France Telecom, is one of Europe's leading Internet and directories companies with, at December 31, 2003, more than 9.1 million Internet Access customers, and more than 641,000 advertisers in Directories. Wanadoo is a leading Internet media services provider in France and U.K., the No. 2 in Spain and in The Netherlands. Wanadoo has more than 2.4 million ADSL and cable subscribers. Wanadoo recorded EUR 2.6 billion in revenues in 2003 and has approximately 6,700 employees. Wanadoo is listed on Euronext Paris. Further information on Wanadoo can be found on the company's web site at: http://www.wanadoo.com/

Except for historical matters contained herein, the matters discussed in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements reflect numerous assumptions and involve risks and uncertainties that may affect deltathree's business and prospects and cause actual results to differ materially from these forward-looking statements.

Among the factors that could cause actual results to differ are the inherent uncertainty of financial estimates and projections, the competitive environment for Internet telephony, deltathree's limited operating history, changes of rates of all related telecommunications services, the level and rate of customer acceptance of new products and services, legislation that may affect the Internet telephony industry, rapid technological changes, and other risk factors contained in deltathree's periodic reports on Form 10-K and Forms 10-Q on file with the SEC and available through http://www.sec.gov/.

deltathree, Inc.

CONTACT: Erik Knettel of Global Consulting Group (GCG), +1-646-284-9415,eknettel@hfgcg.com, for deltathree, Inc.; or Kate Hobbs of Freeserve.com PLC,+44-0-20-7553-7566, kate.hobbs@freeserve.com

Web site: http://www.corp.deltathree.com/http://www.freeserve.com/http://www.wanadoo.com/

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