January 13, 2005

VoiceAge Networks Secures $10 Million in Series A Funding

MONTREAL, January 13, 2005 — VoiceAge Networks Corporation, a leader in multimedia content adaptation, today announced the closing of Series A financing, raising USD$10 million in new capital. BCE Capital (an affiliate of Bell Canada Enterprises) led the round, joined by partners Entrepia Ventures, BDC Venture Capital, and VoiceAge Corporation.“

"Mobile multimedia content and rich media applications are becoming a significant global revenue opportunity for wireless operators and service providers, but a common hurdle that needs to be overcome is the media adaptation at the network layer required to ensure device and network interoperability”, said Joe Catalfamo, BCE Capital Managing Director. “VoiceAge Networks has demonstrated leadership in dealing with such content adaptation issues since 2001, and is extremely well positioned to continue to take market share as it solves this problem for the key stakeholders.”

“VoiceAge Networks is bringing technology innovation that will be invaluable as carriers introduce IP-based services and multimedia applications,” said Amit Srivastava, President, Entrepia. “The company has an impressive mix of management talent, products, and vision which, combined with their Tier 1 clients and global alliances, makes for a very exciting opportunity,” added Steven Abrams, Director, BDC Venture Capital.

“Our SPOT xde® platform has provided our customers with great increases in the uptake of multimedia services, which has driven our significant momentum since spinning off the company from VoiceAge Corp. earlier this year”, said Jean Mayrand, Chief Executive Officer, VoiceAge Networks. “With the help of our strategic partners and a number of commercial deployments, we have quickly reached a level of maturity that has driven us to entertain expansion possibilities. This endorsement from our investors is great validation of our recent accomplishments and will allow us to aggressively pursue and realize our strategic objectives,” added Allan Benchetrit, Chief Operating Officer.

VoiceAge Networks: Multimedia content adaptation through SPOTxde® Server

VoiceAge Networks is a leading solution provider in the emerging multimedia content adaptation market, a technology that addresses the impediments to the seamless delivery of mobile rich-media data services. Its carrier-grade product, SPOT xde® Server, effectively eliminates device and network interoperability errors while allowing virtually all devices (including legacy models) to participate in revenue generating value-added services. Offering carrier grade high availability, linear scalability, and exceptional performance, SPOT xde® Server can be implemented as a central hub in the network and be used for all of the content adaptation needs of Mobile Network Operators and Content Service Providers. VoiceAge Networks participates and supports such standards bodies as 3GPP, 3GPP2, and the Open Mobile Alliance (OMA), and chairs the OMA sub-committee for the Standard Transcoding Interface (STI).
Visit VoiceAge Networks at: www.voiceagenetworks.com.

About BCE Capital
BCE Capital is a leading Canadian Venture Capital (VC) firm with a North American focus that invests in early stage innovative companies in both communications and information technology. Since 1987, BCE Capital has had a successful track record in backing and assisting over 40 emerging growth companies and their entrepreneurs, many of which have gone on to be leaders in their respective industries. BCE Capital is currently investing in its fourth fund, with a mandate over the next five years to manage an investment pool of $250 million in venture related investments. BCE Capital, with offices in Toronto and Ottawa, is an affiliate of Bell Canada Enterprises, Canada’s largest communications company. Visit BCE Capital at: www.bcecapital.com.

About Entrepia Ventures
Entrepia Ventures invests in private, technology-based, expansion-stage companies that stand to benefit from market or technology affiliation with Japan. Operating out of offices in New York, San Jose, Montreal and Tokyo, and increasingly recognized as the "go to Japan" fund, Entrepia helps its portfolio companies generate incremental top-line growth to become more competitive, successful and valuable. Anchored on access, relationships, a hands-on approach, and on-the-ground presence, Entrepia's "Japan link" strategy is directed towards investment opportunities worldwide in IT, communications, electronics and core technologies. Visit Entrepia at: www.entrepia.com.

About BDC Venture Capital
BDC Venture Capital is a major venture capital investor in Canada, active at every stage of the company’s development cycle, from seed through expansion, with a focus on technology-based businesses that have high growth potential and that are positioned to become dominant players in their markets. BDC Venture Capital has been involved in venture capital since 1975 and has to date invested in more than 400 different companies. It currently manages approximately $550 million in venture capital assets invested in the areas of Life Sciences, Telecommunications, Information Technology, Advanced Technologies and Funds Investments. Visit BDC at: www.bdc.ca.

About VoiceAge
VoiceAge Corporation is the forerunner in the development and dissemination of speech and audio compression technologies and solutions at the convergence of wireless, 2.5G, 3G, and Internet protocols. Using designs based on our flagship ACELP® patented technology platform, VoiceAge codec solutions deliver unsurpassed quality experienced daily by more than one billion mobile phone users and 500 million PC users worldwide. VoiceAge is the License Administrator on behalf of Nokia, Ericsson and VoiceAge itself for the Extended AMR-WB (AMR-WB+) patent pool and for the AMR-NB patent pool. In addition, VoiceAge plays a key role in setting industry standards as an active member of several standards bodies including ITU-T, ETSI/3GPP, and 3GPP2.