1 billion users in 100 countries

SPIRIT wins new contract with HTC again

VON San Jose, California – March, 21, 2007 – SPIRIT DSP, the world’s leading provider of embedded voice, audio and video software products, announced today that High Tech Computer Corp. (HTC), one of the largest ODMs in the world, extended its partnership with SPIRIT and licensed SPIRIT’s TeamSpirit® Mobile Voice Engine to be integrated into HTC new mobile devices. SPIRIT already won several deals with HTC during the last 20 months. SPIRIT’s embedded solutions are already acknowledged as the best by many major global mobile OEMs/ODMs, including Quanta, Compal and HTC.

“HTC is definitely one of the pioneers of mass-market mobile VoIP, it started pilot VoIP projects long ago,” said Slava Borilin, VP Products at SPIRIT. “As mobile VoIP adoption moves from pilots to world top carriers and services providers, vendors need proven Voice Engine solutions from SPIRIT. As market demand matures, service providers and OEMs need higher voice quality, as quality is tightly related to subscribers’ satisfaction and churn/retain rates. Experienced SPs and OEMs measure quality of VoIP solutions in the real environments with industrial VoIP testing equipment, setting high expectations for voice quality that only SPIRIT meets today.”

SPIRIT surpasses all competitive solutions, delivering 4.32 MOS quality* for VoIP calls over WiFi in lengthy 30+ minutes calls, according to the test results of a major Asian mobile carrier. The average real conversation voice quality delivered by typical VoIP service providers nowadays is less then 3.9MOS, according to the estimations of a leading European VoIP operator. Mobile video over IP is a next step for mobile devices. SPIRIT with its new product TeamSpirit® Mobile Voice & Video is setting new quality level for the whole industry now, already delivering 3-way video-conference call on mobile feature-phones.

TeamSpirit® Mobile voice engine runs on HTC devices promoted by several largest mobile operators in Asia, Japan and Europe under different brand names. SPIRIT-HTC cooperation has started in 2005, when SPIRIT’s voice enhancement software was integrated into HTC Universal (the world’s first 3G Video Telephony smart phone based on Windows Mobile 5.0), HTC Breeze and other HTC phones to deliver superior voice quality in full-duplex voice and video conferencing to T-Mobile, Orange, Vodafone and other carriers. The latest SPIRIT – HTC deal signed in 2007 is the natural evolvement of long-term tight cooperation between the 2 companies.

* calculated by a mean opinion score (MOS), a common objective measure of conversational voice quality that rates calls on a scale from one (bad) to five (excellent), and 4.5 MOS is considered to be toll-quality.

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.

20 March 2007