SPIRIT-DSP

PalTalk Selects SPIRIT Voice Product for One of the Most Popular Voice & Video Conferencing Services in the World

January 26, 2006

MOSCOW–(BUSINESS WIRE)–SPIRIT DSP

(www.spiritDSP.com/voip), provider of award-winning embedded voice

& communication software products, announced today that PalTalk

(www.paltalk.com), one of the Internet’s leading providers of voice

and video chat services, has chosen SPIRIT voice software product to

enhance the Paltalk user voice experience. Paltalk is one of the

world’s most popular voice & video communication services in the world,

featuring more than 37 million registered users in over 140 countries

carrying in excess of 8 billion voice minutes per year.

“Through SPIRIT’s partnership with Paltalk, the clear voice from

SPIRIT for multi-point conferencing will now serve additional millions

of people worldwide “- said Andrew Sviridenko, SPIRIT’s founder and

chairman.

SPIRIT’s award-winning multi-point full-duplex voice enhancement

will be deployed in Paltalk’s thriving rooms. SPIRIT product will

allow each person on Paltalk to speak up and be heard even while

another person is talking simultaneously. The full-duplex voice

functionality from SPIRIT will be enabled for Paltalk’s online

conferences with 1000+ people all in the same room. Paltalk was the

first to offer an instant messenger with free voice capabilities.

“Paltalk has always been heavily focused on the quality of the

user experience,” notes Jason Katz, Paltalk’s founder and CEO. “We are

looking forward to bringing SPIRIT’s voice quality enhancements to the

millions of people in the Paltalk community worldwide.”

SPIRIT’s flagship product – award-winning multi-point full-duplex

voice conferencing engine TeamSpirit (TM) – already deployed by both

Oracle and Macromedia, provides superior voice quality, not only in

peer-to-peer talk, but also in multi-point full-duplex conferencing,

allowing each person speak up and be heard even in double talk. 10

years of SPIRIT’s embedded voice experience allow easy and fast

integration of SPIRIT voice conferencing engine into applications on

PC, mobile phones, 3G video enabled phones and VoIP CPEs (Voice &

Video over IP Customer Premises Equipment). Overall SPIRIT products

power over 80M+ voice channels today.

About SPIRIT

SPIRIT DSP (www.spiritDSP.com/voip) employs 120 professionals,

has been in international software licensing business since 1992. SPIRIT

is a bootstrap and has been profitable for 12 years. SPIRIT focus is

communication, speech and VoIP software products and today SPIRIT counts

among its clients Agere, Atmel, Flextronics, Ericsson, HP, HTC, Kyocera,

LG, Macromedia, Marconi, NEC, Nortel Networks, Oracle, PalTalk,

Panasonic, Philips, Polycom, Samsung, Siemens, Texas Instruments and

Toshiba, among 200+ other communication OEMs and software vendors.

Through the brand names SPIRIT communication software is used in over 70

countries and powers 80 million voice channels. SeeStorm is SPIRIT

subsidiary for synthetic video conferencing. In 2005, SPIRIT DSP has been

honored as one of the ‘Fierce 15’ top VoIP companies, and one of

the ‘Pulver 100’ growth companies that represent the future of IP

communications.

About PalTalk

PalTalk is a New York-based, privately held service provider for

voice and video conferencing over the Internet. PalTalk was founded in

1998 and was the first company to launch video and voice combined with

an on-line buddy list in one package. PalTalk interoperates with AOL

Instant Messenger, Yahoo messenger and ICQ. PalTalk currently has 37

million registered users in over 140 countries and provides over 8

billion voice minutes per year. PalTalk has relationships with IBM,

AT&T, DeltaThree, Doubleclick, Valueclick, and Advertising.com.