1 billion users in 100 countries

Paltalk selects SPIRIT voice product for one of the most popular voice & video conferencing services in the world

Moscow, Russia — January 24, 2006 SPIRIT DSP, provider of award-winning embedded voice & communication software products, announced today that PalTalk (www.paltalk.com), one of the Internet’s leading providers of voice and video chat services, has chosen SPIRIT voice software product to enhance the Paltalk user voice experience. Paltalk is one of the world’s most popular voice & video communication services in the world, featuring more than 37 million registered users in over 140 countries carrying in excess of 8 billion voice minutes per year.

“Through SPIRIT’s partnership with Paltalk, the clear voice from SPIRIT for multi-point conferencing will now serve additional millions of people worldwide “- said Andrew Sviridenko, SPIRIT’s founder and chairman.

SPIRIT’s award-winning multi-point full-duplex voice enhancement will be deployed in Paltalk’s thriving rooms. SPIRIT product will allow each person on Paltalk to speak up and be heard even while another person is talking simultaneously. The full-duplex voice functionality from SPIRIT will be enabled for Paltalk’s online conferences with 1000+ people all in the same room. Paltalk was the first to offer an instant messenger with free voice capabilities.

“Paltalk has always been heavily focused on the quality of the user experience,” notes Jason Katz, Paltalk’s founder and CEO. “We are looking forward to bringing SPIRIT’s voice quality enhancements to the millions of people in the Paltalk community worldwide.”

SPIRIT’s flagship product – award-winning multi-point full-duplex voice conferencing engine TeamSpirit® – already deployed by both Oracle and Macromedia, provides superior voice quality, not only in peer-to-peer talk, but also in multi-point full-duplex conferencing, allowing each person speak up and be heard even in double talk. 10 years of SPIRIT’s embedded voice experience allow easy and fast integration of SPIRIT voice conferencing engine into applications on PC, mobile phones, 3G video enabled phones and VoIP CPEs (Voice & Video over IP Customer Premises Equipment). Overall SPIRIT products power over 80M+ voice channels today.

About SPIRIT

SPIRIT DSP (www.spiritDSP.com) is the world’s leading provider of carrier-grade voice & video software engines since 1996. SPIRIT communication software is used in over 80 countries and powers more than 100 million voice channels. SPIRIT counts among its direct customers Adobe, ARM, AT&T, Blizzard, BT, China Mobile, Cisco, Ericsson, HP, HTC, Huawei, Korea Telecom, Kyocera, LG, Microsoft, NEC, Oracle, Polycom, Radvision, Samsung, Siemens, Skype, Texas Instruments, Toshiba, ZTE, and 200+ other telcos, OEMs and software vendors. SPIRIT smart-phone OEM customers’ shipments jointly exceed 60% share of the global market.

23 January 2006