PRESS RELEASE – FOR IMMEDIATE RELEASE

Nimcat Networks Extends Its Industry Leadership With TECOM Partnership

Partnership Will Deliver Turnkey Enterprise-Class, VoIP Solution To

Leading OEMs Targeting SMBs

Ottawa, Canada (June 7, 2005) – Nimcat Networks, the premiere provider of embedded, peer-to-peer (P2P) call processing software, and TECOM Ltd, a leading manufacturer of telecommunications equipment, announced today that they have entered into a partnership. The partnership will embed Nimcat’s industry-first and award-winning nimX™ software within TECOM’s advanced voice over IP (VoIP) terminals.  The result will be a turnkey solution that gives original equipment manufacturers (OEM) the opportunity to profitably deliver enterprise-class telephony systems that address the small-to-medium businesses (SMB) market.

Infonetics, an international market research and consulting firm covering the data networking and telecommunications industries estimates that 29% of large, 16% of medium and 4% of small organizations will have adopted IP voice by the end of 2005 in North America. VoIP services revenue was approximately $1.3 billion in 2004, in North American. Additionally, Infonetics predicts that North American VoIP services revenue will grow 1,431% to $19.9 billion by 2009.  

“We see a significant market opportunity in partnering with Nimcat to offer such an innovative, yet affordable, solution to the small and medium business,” said Kevin Shen, director of product marketing and management at TECOM. “We are partnering with Nimcat for nimX’s portability, rich feature set, scalability and upgrade path, among others. We were also quite impressed with the company’s integration engineering team. We look forward to a successful and profitable relationship.”

“We are extremely pleased that a leading telecommunications and technology manufacturing firm like TECOM recognizes the power and value of our technology. Our combined efforts will shorten the time-to-market for our common customers,” said Mahshad Koohgoli, chief executive officer of Nimcat Networks, Inc. “We will continue to build the software and provide the engineering support that enables our customers to quickly enter and flourish in new markets.”

The combined system embeds nimX, Nimcat’s unique P2P call processing software that leverages the increased processing power of VoIP chips and the emergence of standard communication protocols, such as SIP. With nimX, the intelligence usually found at the PBX is distributed to end-user telephone sets. Call-control, voice-mail, auto-attendant, branch office and teleworker, among other key features, are all contained within and powered by the IP Telephone. 

Nimcat has leveraged this architecture to properly address the telephony needs of the small-to-medium businesses. By eliminating the need for a “central” piece of equipment, Nimcat has developed a low-cost solution that is simple to install and maintain, and more importantly, easy to use.

Phones that contain Nimcat’s technology independently recognize the other terminals on the network and instantly form a trusted, virtual exchange with the ability to interact with their peers, connect to the PSTN or any WAN VoIP channel. Users only need to plug a nimX-powered phone into their data network and it automatically configures itself, allowing calls to be made and received without any additional complex setup or centralized equipment.

About Tecom Co, LTD

TECOM Co., LTD., a leading manufacturer of telecommunications equipment, was established in 1980 in the Science-Based Industrial Park at Hsinchu, Taiwan. TECOM provides telecommunication equipment products including business communication systems, wireless communication systems and broadband/IP communication systems.

About Nimcat Networks

Nimcat Networks is the premiere provider of embedded, peer-to-peer call processing software. Its patented, Peer-Telephony-eXchange (PTX) solution operates within standard VoIP telephone sets, eliminating the need for costly PBX equipment. Nimcat's solution enables communications equipment vendors to create enterprise-class telephone systems that are easy to deploy, expand and maintain. The company has filed more than a dozen patents for its leading-edge technology. Nimcat's technology improves product margins, reduces development time-to-market and enables new distribution channel opportunities for telephony OEMs.

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Nimcat Networks, nimX, Peer Telephony eXchange, the Nimcat Networks logo and any combinations thereof are the property of Nimcat Networks, Inc. All other brand and product names are used for identification only and are owned by their respective holders.

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Ed Schauweker                                                            

Tactile Marketing Group