Veraz Company Presentation

June 2009

Who is Veraz Networks?

• A public company (NASDAQ: VRAZ) headquartered in Silicon Valley (San Jose, CA)

• A leading supplier of network infrastructure that enables service providers to create, manage and transport sessions

• An experienced global provider of next generation VoIP networks

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• An experienced global provider of next generation VoIP networks with deployments in over 60 countries

• Veraz Networks enables service providers to:

– Improve time to market for new services by up to 75%

– Reduce operating expenses by up to 50%

– Reduce cost of bandwidth by up to 90%

Leading the way to the Multimedia Generation Network

Why Leading Service Providers Choose Veraz

• “After a thorough evaluation, we chose Veraz’ solution for the following reasons:– 30% TCO savings per port

– the flexibility to interwork with our multi-vendor switching infrastructure

– seamless integration with our media gateways”

Bridget Cosgrave, former CEO of

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Bridget Cosgrave, former CEO of

• “Veraz offers a powerful platform that enables us to grow our business flexibly while helping us to differentiate our service offerings, maximize revenues and reduce both capital and operational expenditures”

Dino Andreou, CEO of

The intelligent, low cost, platform for creating, managing and transporting sessions

Veraz Worldwide

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U.S. Government

Experience gained from over 100 IP deployments worldwide

Veraz’s Multimedia Generation Network Portfolio

Bandwidth Optimization Products

Interconnect VoIP

Switching Solutions

Session Control Solutions

TDM Compression:

Up to 20:1

IP & TDM Bandwidth

Optimization Platform:

Up to 16:1

Next Generation Session

Border Controller

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ControlSwitch

I-Gate 4000 PRO

I-Gate 4000 EDGE

DTX-600 Network-adaptive Border

ControllerI-Gate 4000 SBO

I-Gate

4000 EDGE SIP

Gateway

Complete end-to-end solution for lowering cost and driving revenue

OPEX Savings Revenue Generation

Bandwidth Optimization Overview

• Service providers’ challenge: reduce operating expenses without sacrificing service quality– Alternative over-the-top services already using higher quality codecs (e.g.

Skype)– Increasing expectation of “land-line” quality using mobile services

• What do service providers need?– High bandwidth optimization and high voice quality - simultaneously

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– High bandwidth optimization and high voice quality - simultaneously– Scalable solutions that cost-effectively grow as traffic increases– Robust performance during adverse packet network conditions– Interoperability with a wide range of 3rd party VoIP equipment– Support for switched/static/combination on the same platform

• Voice optimization important today but the focus is shifting quickly to data (e.g. web traffic, video) optimization– The amount of data traffic already exceeds voice traffic and is growing

rapidly on 3G mobile networks– Data services are the driver for new devices and services (e.g. LTE)

Veraz Bandwidth Optimization Portfolio

I-Gate 4000 PROI-Gate 4000 EDGE I-Gate 4000 SBO

Low density edge applications• T1/E1, GigE,10/100 Ethernet

Mid-High density core applications• T1/E1, DS3, OC3, STM1, GigE,

VoIP bandwidth compression• 3G mobile Nb, IuCS support

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Best In class bandwidth optimization - high voice quality simultaneously

• T1/E1, GigE,10/100 Ethernet• 480/496 DSOs• Up to 16:1 compression• H.248, MGCP• 1U high• Fully redundant in 1U• Switched, static, combined

modes

• T1/E1, DS3, OC3, STM1, GigE, 10/100 Ethernet

• Up to 16,800 DSOs• Up to 16:1 compression• H.248, MGCP• 7U high – 3 shelves/bay• Any-to-any transcoding• Switched, static, combined modes

• 3G mobile Nb, IuCS support• 4 GigE, 1 FE• 3,000 simultaneous sessions• Up to 12:1 compression• Transparent to 3rd party media

gateways and softswitches• 1U high• Fully redundant in 1U

What Makes Veraz Bandwidth Optimization Different?

• Silence suppression, voice activity detection– The I-Gate 4000’s voice activity detection performance has consistently been rated

best-in class in multi-vendor tests

• Packet loss concealment (PLC) and QoS assurance– The I-Gate 4000’s unique Packet Priority Scheme maintains voice quality by

selectively dropping low priority PLC packets under adverse network conditions

• Packet payload aggregation, RTP multiplexing– RTP multiplexing significantly reduces bandwidth requirements and core router load

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– RTP multiplexing significantly reduces bandwidth requirements and core router load without effecting voice quality

– The I-Gate 4000 EDGE demonstrated 16:1 compression using G.723.1 with a reduction in MOS score of only 0.3 in field testing of RTP multiplexing

• Proper handling of fax and modem data traffic– The I-Gate 4000 family incorporates Veraz’s 15 years of experience in identifying and

handling fax and modem data traffic appropriately

The core technology used across the I-Gate 4000 family ensures high compression rates with high quality

Session Control Overview

• Service provider’s challenge: develop innovative revenue generating services while rapidly reducing the cost of the core voice business

• What do service provider’s need?– Solutions that extend and leverage their existing voice service infrastructure

– Solutions that gracefully incorporate both legacy TDM and new IP-based systems and protocols

– Solutions that scale cost-effectively as traffic and services grow

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– Solutions that scale cost-effectively as traffic and services grow

– Products that are highly focused on solving specific problems and not burdened with unnecessary features

• Unique opportunity with LTE and IPX to provide innovative voice solutions to mobile carriers– Mobile carrier need LTE for data but can’t afford to ignore providing high-

quality mobile voice

– Significant industry debate about how and when LTE will support voice

Session Control Portfolio

ControlSwitch • I-Gate 4000 family of MGs• I-Gate 4000 SIP Gateway• N-aBC

Application Services

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Border & Media Gateways• Media Gateway

• Session Border Controller

• Signaling Gateway

• Transcoding Gateway

• Media Server

Class 4 VoIP signaling and session control

• Multi-Protocol Support and Distributed Architecture

• Open Service Broker and Policy Engine

• HSS and Veraz Application Server

Application Services• ENUM

• LNP

• Prepaid

• Unified Messaging

• Web integration

• Conferencing

Wireline Interconnect Example - Global Wholesale

NYC

4,710 ports

TDM only

Miami

1,242 ports

London

3,600 ports

TDM only

San Jose

1,890 ports

TDM and IP

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1,242 ports

TDM onlyLA

10,176 ports

TDM and IP

Auckland

1,899 ports

TDM and IP

Singapore

3.600 ports

TDM and IP

The ControlSwitch can support the most complex global interconnect networks being built today

Summary

• The I-Gate 4000 family of bandwidth optimization products:– Delivers simultaneous best-in-class compression and high quality voice – Incorporates unique features which lowers total costs and maintains high

quality service (e.g. end-to-end compression)

• The ControlSwitch session control platform:– Provides an ideal platform for VoIP peering applications in wholesale, fixed

and mobile networks

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– Lowers operating and capital expenses through a distributed and scalable architecture

• The Network-adaptive Border Controller:– Provides a compact, security platform for both peering and access networks – Lowers operating expenses with easy-to-use local management – Lowers VoIP core bandwidth with 10:1 compression

• Professional services– Highly trained team ensures your network runs smoothly

Leading the way to the Multimedia Generation Network