1 billion users in 100 countries

Deltathree Upgrades PC Phone for its Reseller Group and joip Consumer Brand with SPIRIT Voice Engine PC

Moscow, Russia- November 15, 2007 – SPIRIT DSP, the world’s leading provider of voice and video software engines, announced today that deltathree, Inc. (Nasdaq:DDDC), a leading provider of SIP-based VoIP solutions for service providers and consumers worldwide, has selected TeamSpirit® 3.0 Voice Engine PC to upgrade deltathree’s PC Phone for its Reseller group and joip consumer brand.

deltathree’s PC Phone allows consumers to make and receive calls at any time on any computer around the world. The Reseller Program offers deltathree’s award-winning turnkey VoIP Phone solutions to call shops, Internet cafes, Internet service providers, and local PC to Phone software or hardware distributors around the world. joip is the newly formed consumer brand of deltathree that powers the VoIP service of Panasonic’s GLOBARANGE hybrid landline/VoIP phones. GLOBARANGE owners automatically become part of the global joip community, where members can call each other around the world for free while experiencing the benefits of a range of advanced VoIP calling features.

“In our commitment to serve our customers with the highest level of efficiency and quality, deltathree has upgraded its PC Phone with SPIRIT’s Voice Engine PC,” said Effi Baruch, deltathree’s Senior Vice President of Operations and Technology. “Our dedication to innovation has led us to use SPIRIT’s best-in-class voice engine so that clients of our Reseller Program as well as joip can experience the most crystal-clear quality of sound the industry has to offer when communicating via our PC Phone. We have thoroughly tested SPIRIT’s solution against strict requirements and growing needs of our customers, as well as against pre-existing voice engines. We found SPIRIT to be the best solution in terms of quality, maturity and engineering support.”

“SPIRIT is the only vendor whose solution guarantees the highest quality voice for any VoIP soft-phone service,” confirmed Alex Kravchenko, VP Sales & Marketing of SPIRIT. “In fact, many VoIP players, including Skype, have recently upgraded their voice technology to meet the latest market requirements in voice quality.”

TeamSpirit® Voice Engine PC is a part of SPIRIT’s complete, pre-integrated IMS-ready solution, TeamSpirit® 3.0 Voice&Video Engine PC, which encapsulates wideband voice and video processing to offer the smoothest video and voice integration experience for NGN services and applications. Thanks to unique SPIRIT proprietary technology, the engine successfully solves all the issues encountered in V2oIP (voice and video over IP) communications, including voice and video lips sync.

The TeamSpirit® engine seamlessly bundles standard and proprietary wideband voice and video codecs, acoustic echo and noise cancellation, packet loss concealment, adaptive jitter buffer and network optimizing functionality, voice/video synchronization, all standard telephony protocols, CPU load control and more, allowing fast and easy integration into complex products designed to deliver low-latency voice and video over IP. The engine supports next generation IMS features: 3gp voice/video sharing, voice/video recording, 3gp playback/record, RTSP/SDP protocols, push-to-talk, etc, and is optimized for Microsoft® Windows® 98/2K/XP/Vista, Apple® Mac OS X, and Linux, among other operating systems.

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.

14 November 2007