deltathree Selects Level 3 to Support Ongoing Growth of its Consumer and Business VoIP Offerings

deltathree Selects Level 3 to Support Ongoing Growth of its Consumer and Business VoIP Offerings

NEW YORK and BROOMFIELD, Colo., Jan. 26 /PRNewswire-FirstCall/ -- deltathree, Inc. (NASDAQ:DDDC) announced today that it has signed an agreement with an operating subsidiary of Level 3 Communications, Inc. (NASDAQ:LVLT) to purchase wholesale Voice-over-IP (VoIP) services. The Level 3 services will support the growth of deltathree's Service Provider and Reseller VoIP offerings as well as iConnectHere, deltathree's retail VoIP service.

Shimmy Zimels, deltathree's President and Chief Executive Officer, stated, "We are pleased to be working with Level 3, one of the leading Internet backbone operators worldwide, to tap their proven capabilities to support the global deployment of our VoIP solutions. This agreement supports deltathree as we continue to expand the breadth of our value added VoIP solutions to service providers, resellers and consumers with a diverse range of VoIP offerings. Level 3's geographic reach allows deltathree to scale our VoIP network backbone quickly and efficiently while ensuring that we maintain the high level of network quality and dependability on which our customers rely."

deltathree purchased Level 3's (3)VoIP EnhancedSM Local service to expand the geographic reach of its VoIP solutions and accommodate current and future growth of its reseller, service provider and consumer groups. deltathree provides a full range of VoIP solutions, supporting major telecommunications and broadband service providers through its Outsourced Platform Solution as well as offering programs for resellers worldwide. The Reseller Program is ideal for a broad range of customers, including: calling centers/shops, Internet Cafes, local hardware and software distributors, local ISPs, calling card and callback companies, telecom consultants, Web portal and entrepreneurs. deltathree's consumer division, iConnectHere, provides award-winning VoIP products directly to end users around the world.

"We are pleased to be working with deltathree, one of the leading providers of VoIP solutions, to effectively expand their deployment of high-quality VoIP services," said Shirish Lal, Senior Vice President of Consumer Voice Services for Level 3. "deltathree's selection of Level 3 demonstrates the power and flexibility of Level 3's wholesale VoIP solutions and will provide deltathree the ability to expand their network to accommodate rising VoIP call traffic on a global basis without costly buildouts."

Level 3's (3)VoIP Enhanced Local service is a wholesale VoIP solution that enables companies who operate their own switching infrastructures to launch IP-based local and long-distance communications services to residential and business customers via any broadband connection. (3)VoIP Enhanced Local provides the essential components required to offer high-quality VoIP service. These components include network trunking, local numbers, local number portability, E911, operator assistance, directory listings, and directory assistance. At the same time, the (3)VoIP Enhanced Local solution allows Level 3 customers to retain the flexibility to manage and control end-user features without the need to implement complex interconnection arrangements.

(3)VoIP Enhanced Local service was honored as a recipient of the 2004 Product of the Year Award by Technology Marketing Corporation's (TMC(R)) INTERNET TELEPHONY(R) magazine.

About Level 3 Communications

Level 3 (NASDAQ:LVLT) is an international communications and information services company. The company operates one of the largest Internet backbones in the world, is one of the largest providers of wholesale dial-up service to ISPs in North America and is the primary provider of Internet connectivity for millions of broadband subscribers, through its cable and DSL partners. The company offers a wide range of communications services over its 23,000 mile broadband fiber optic network including Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, and patented Softswitch managed modem and voice services. Its Web address is http://www.level3.com/.

(3)VoIP Enhanced is a service mark of Level 3 Communications, Inc. in the United States and/or other countries. (3)VoIP Enhanced Local service is offered by Level 3 Communications, LLC.

About deltathree

Founded in 1996, deltathree is a leading provider of hosted, Session Initiation Protocol (SIP)-based Voice over Internet Protocol (VoIP) products and services. deltathree provides private-label products, including Broadband Phone, PC-to-Phone, and Phone-to-Phone, as well as back-office services such as billing, operations management, marketing support, and network management, to resellers and service providers worldwide. deltathree's retail division, iConnectHere, provides award-winning VoIP products directly to consumers and businesses. Our high quality Internet telephony solutions are viable and cost-effective alternatives to traditional telephone services.

For more information about deltathree, visit our web site at http://www.deltathree.com/.

Forward Looking Statement

Some of the statements made by Level 3 in this press release are forward- looking in nature. Actual results may differ materially from those projected in forward-looking statements. Level 3 believes that its primary risk factors include, but are not limited to: changes in the overall economy relating to, among other things, the September 11 attacks and subsequent events, substantial capital requirements; development of effective internal processes and systems; the ability to attract and retain high quality employees; technology; the number and size of competitors in its markets; law and regulatory policy; and the mix of products and services offered in the company's target markets. Additional information concerning these and other important factors can be found within Level 3's filings with the Securities and Exchange Commission. Statements in this release should be evaluated in light of these important factors.

Except for historical matters contained herein, the matters discussed in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements reflect numerous assumptions and involve risks and uncertainties that may affect deltathree's business and prospects and cause actual results to differ materially from these forward-looking statements. Among the factors that could cause actual results to differ are the inherent uncertainty of financial estimates and projections, the competitive environment for Internet telephony, deltathree's limited operating history, changes of rates of all related telecommunications services, the level and rate of customer acceptance of new products and services, legislation that may affect the Internet telephony industry, rapid technological changes, and other risk factors contained in deltathree's periodic reports on Form 10-K and Forms 10-Q on file with the SEC and available through http://www.sec.gov/.


Source: deltathree, Inc.; Level 3 Communications, Inc.

CONTACT: deltathree Media - Allan Jordan, +1-646-284-9452,
ajordan@hfgcg.com, deltathree Investors - Erik Knettel, +1-646-284-9415,
eknettel@hfgcg.com; or Level 3 Media - Paul Lonnegren, +1-720-888-6099, or
Level 3 Investors - Sandra Curlander, +1-720-888-2501

Web site: http://www.level3.com/
http://www.deltathree.com/


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