Xten Bundles SIP Softphones with Headsets from GN Netcom for Retail and Wholesale Distribution Xten's eyeBeam softphones and GN Netcom headsets will be bundled for retail offerings SANTA CLARA, CA, March 7 /PRNewswire-FirstCall/ -- Xten Networks, Inc. (OTCBB: XNWK), a provider of award-winning VoIP (Voice over Internet Protocol), Video over IP, Instant Messaging (IM), and Presence SIP softphones, today announced that GN Netcom is working to bundle Xten's eyeBeam softphones with GN Netcom headsets in retail stores across the US & Canada. The two companies will work together to deliver bundled headset & softphone solutions for retail and wholesale offerings in the enterprise and carrier markets. Wholesale points of distribution will also span the US, Canada and other parts of the globe. "Xten has formed a solid working relationship with GN Netcom and by doing so we have gained access to their enormous distribution network," commented Erik Lagerway, President and COO of Xten. "We expect to see Xten product bundled with GN Netcom hardware on retail shelves all across North America before the end of the year." Today from booth No. 1135 at the Voice on the Net (VON) Show, GN Netcom will demonstrate Xten's SIP softphones with their expansive array of headsets. Xten from booth No. 420 will also be demonstrating GN Netcom's headsets with eyeBeam, Xten's new VoIP, Video and IM software endpoint. "GN Netcom is excited about working with Xten and we look forward to providing a complete VoIP solution using their SIP softphone technology to our partners, customers and distributors," said Raaj Chitaley, Director of Marketing for GN Netcom, Inc. "The GN 6210, GN 500 Series and up-coming Concept 9X3 represent our latest headset offerings enabling users to work more efficiently and effectively thanks to the integration of the latest technology and unique design components. Xten is an excellent match for these products and the two company offerings compliment each other greatly." GN 500 Series Headsets will be included in the various bundles. The GN 500 Series is an affordable PC headset solution that is designed for the small office and home office users who would like to communicate via the Internet, use speech recognition and listen to multi-media on the PC. Each product in the portfolio varies to meet customer preferences and boasts superior sound quality while offering a stylish look and feel. The products which share several features, such as in-line mute and volume controls, will be available at many retail outlets. Xten's softphones for Windows, MAC OS X and Pocket PC are software applications, which run on devices such as personal computers (PCs) or personal digital assistants (PDAs) or can be integrated into web pages or web applications. When an Xten softphone is connected to a service provider's network, the user can make and receive calls to and from other "on-net" callers (IP-to-IP) and/or "off-net" callers (IP-to-PSTN/Cellular) with the same quality of service they would expect from their IP handset. However, at a fraction of the cost, while providing more features and functionality than the IP handset. About GN Netcom GN Netcom, a division of GN Store Nord, is the global leader in personal communications devices, providing innovative, high-quality solutions for both secure wireless and corded hands-free applications. The GN Netcom product line includes headsets and multi-purpose amplifiers for use with virtually any telephone and with such diverse technologies as speech recognition software, VoIP, and Bluetooth-enabled communications. GN Netcom focuses on the contact center, office, and mobile market segments; it has offices, factories, and development centers in 23 countries and sells products in over 100 countries around the world. GN Netcom's primary competitor in North America is Plantronics, Inc. For further company information please visit http://www.gnnetcom.com/. For information about products please visit http://www.gnnetcom.com/usa or call 1-800-826-4656. For further information contact: Niamh Mahon Edelman +1.212.704.8256 About Xten Xten is a developer of award-winning, high-quality, carrier-grade VoIP (Voice over IP) and Video over IP SIP softphones for service providers, cable operators, Internet telephony service providers, IP PBX manufacturers and OEMs. Xten's SIP softphones are available either pre-configured or as a software development kit (SDK), and provide VoIP (Voice over IP), Video over IP, IM (Instant Messaging), and Presence functionality. eyeBeam - Xten's feature-rich SIP Video over IP softphone with IM and Presence - recently received INTERNET TELEPHONY(R) Magazine's "Product of the Year" Award for 2004. Through its deployments with leading service providers, Xten has more than 1,000,000 IP endpoints deployed worldwide. For more information please visit http://www.xten.com/. For further information on Xten, please contact Investor Relations - KCSA Worldwide: Todd Fromer +1.212.896.1215 Michael Cimini +1.212.896.1233 For more information on Xten products, please contact Media Relations - Calysto Communications: Justin Siefert +1.404.266.2060 x20 DATASOURCE: Xten Networks Inc. CONTACT: Niamh Mahon, Edelman, (212) 704-8256, ; on Xten, please contact Investor Relations - KCSA Worldwide: Todd Fromer, (212) 896-1215, ; Michael Cimini, (212) 896-1233, ; For more information on Xten products, please contact Media Relations - Calysto Communications: Justin Siefert, (404) 266-2060 x20,

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