“We’ve at least doubled in size every year since we started Fonality in 2004,” said Chris Lyman, Fonality CEO. “We’ve done this by staying focused on our bread and butter: making telephony affordable, easy to use and standards-based. This is in stark contrast to an industry that seems fixated on keeping telephony expensive, complicated, and proprietary, a trend that continues to create enormous growth opportunities for Fonality in a $20 billion dollar global market.”

“Telephony becoming a component of a complete unified communications solution is causing a landscape evolution and giving rise to a number of new products and companies that hold significant growth potential,” says Frost & Sullivan Industry Analyst Krithi Rao.

Fonality has rebuilt the business phone system from the ground up with the goal of creating a low-cost product that is easy for a small or medium-sized business to install and manage. Adoption of Fonality products has come from companies wanting a modern, feature-rich alternative to costly systems from companies like Avaya and Cisco, and one that will grow with them and not need replacing or upgrading on regular intervals.

Fonality’s patented hybrid-hosted architecture, call center applications, as well as a rich set of unified communication applications, have helped fuel the company’s success. A hybrid-hosted approach combines the benefits of a hardware PBX with the affordability and ease of use of a hosted offering. It also enables a variety of fixed-mobile convergence capabilities that allow employee identity to be maintained whether they are working at the office, at home or traveling. The award-winning HUD^® application works with the core system and provides a unified view of chat, email, and calling for all fixed and mobile workers.

Fonality has created a powerful distribution channel comprised of computer consultants, VARs and OEMs. Today, more than 7,000 data VARs have signed onto the Fonality reseller program. The company also formed a strategic partnership with Dell and a distribution agreement with PC Mall.

Fonality now has 130 employees, with offices in five countries, and operates five global data centers. In addition to standard phone systems, the company has more than 1,300 Fonality-powered call centers and 125,000 active unified communications desktops.

“We have created an entirely new category of business communications — the small business call center,” added Lyman. “We realized early on that ‘call center’ doesn’t just mean 1,000 agents in cubicles. If you have 15 employees with three sales and three support guys, you’ve got a call center. We make call center software cost effective and easy enough for this market to quickly adopt.”

About Fonality

Fonality, www.fonality.com, is a leader in business phone systems and contact center solutions for small and medium-sized businesses. Used by over 5,000 companies and 100,000 end users in 100 countries, Fonality's award winning IP-PBX VoIP phone systems have connected more than 225,000,000 mission critical phone calls. The PBXtra and trixbox Pro product lines are based on Fonality's patent-pending Anywhere Management^™ Hybrid-Hosted^™ architecture, plus an improved version of the popular open source Asterisk code base which has been modified to add reliability, stability and enterprise-class features. PBXtra and trixbox Pro deliver the advanced capabilities of an enterprise-class phone system for 40 to 80 percent less than traditional offerings. Fonality's fully free and open source telephony platform, trixbox CE (www.trixbox.org), is home to one of the world's largest and fastest growing communities of open source telephony users, with over 200,000 live deployments and 125,000 new downloads each month. Fonality headquarters are in Los Angeles. Company investors include Azure Capital Partners and Intel Capital.

Fonality, PBXtra, trixbox, and HUD are registered trademarks and Hybrid-Hosted and Anywhere Management are trademarks of Fonality. Other trademarks are the property of their respective holders.

“HUD is clearly deserving of recognition for its out-of-box innovation helping to transform the unified communications industry. We’re proud to reward Fonality for its hard work with a Unified Communications’ TMC Labs Innovation Award,” said TMC President Rich Tehrani.

The latest version of HUD features Fonality’s unique presence-detection system, dubbed FindMe^® with Boomerang^® Mobile Integration. FindMe detects employee keyboard and mouse movements and makes call routing decisions according to where the system detects the individual’s presence. Once calls have arrived to mobile devices, calls can be recorded on the mobile device or even “boomeranged” back to the office switch.

“HUD is changing the way people work,” said Chris Lyman, Fonality CEO. “With a single click HUD workers are connected via desk phone, mobile phone, chat, email, or voicemail. We already have 100,000 users on HUD whose lives are being made easier by unified communications every day.”

“Fonality has demonstrated a commitment to quality, and a commitment to the further development of the unified communications industry through PBXtra with HUD,” said Tom Keating, CTO and TMC Labs Editorial Director at TMC. “Fonality deserves this great honor, and I look forward to seeing other innovative solutions from them as they continue to contribute to the future of unified communications industry.”

The TMC Labs Innovation Awards honor products that demonstrate raw innovation, unique features, and significant contributions toward improving communications technology. The TMC Labs Innovation Awards are not granted only to the best-selling products, but instead to those demonstrating a significant contribution to the industry.

Fonality business phone systems are designed for modern workplaces and allow mobile employees to participate on the PBX wherever they work, be it in the office, at home, on the road, or on a mobile device. Fonality supports both VoIP calling and traditional phone lines, allowing a smooth transition for businesses upgrading their calling services. Fonality’s patented Hybrid-HostedTM architecture allows employee identity to be maintained as employees travel between work, home, and hotel. Fonality, when paired with the award-winning HUD presence software, provides a unified view of chat, email, and calling for all fixed and mobile workers. 2008 TMC Labs Innovation Award winners can be found in the May 2008 issue of Unified Communications magazine.

About Fonality

Fonality, www.fonality.com, is a leader in business phone systems and contact center solutions for small and medium-sized businesses. Used by over 5,000 companies and 100,000 end users in 100 countries, Fonality's award winning IP-PBX VoIP phone systems have connected more than 225,000,000 mission critical phone calls. The PBXtra and trixbox Pro product lines are based on Fonality's patent-pending Anywhere Management^™ Hybrid-Hosted architecture, plus an improved version of the popular open source Asterisk code base which has been modified to add reliability, stability and enterprise-class features. PBXtra and trixbox Pro deliver the advanced capabilities of an enterprise-class phone system for 40 to 80 percent less than traditional offerings. Fonality's fully free and open source telephony platform, trixbox CE (www.trixbox.org), is home to one of the world's largest and fastest growing communities of open source telephony users, with over 200,000 live deployments and 125,000 new downloads each month. Fonality headquarters are in Los Angeles, and the company has offices in the UK, Brazil and Australia. Company investors include Azure Capital Partners and Intel Capital.

Fonality, PBXtra, trixbox and HUD, are registered trademarks of Fonality. Hybrid-Hosted and Anywhere Management are trademarks of Fonality. Other trademarks are the property of their respective holders.

The review praised PBXtra as “value-laden” and credited its scalability and user-friendly interface with making it easy to install, use and maintain. Fonality’s fanatical focus on delivering the right balance of rich, accessible functionality at affordable price points has made it the IP-PBX of choice for growing businesses. More than 5,000 companies in over 100 countries are now using Fonality’s business phone systems.

“Time is money and people often overlook ease of use until after they have made their phone system purchase. This can end up being an expensive mistake,” said Fonality CEO Chris Lyman. “We work very hard to deliver a phone system that is feature-rich but installs without the complexities of open heart surgery. We’re proud that Infoworld has recognized this one-two combo.”

Fonality business phone systems are designed for modern workplaces and allow mobile employees to participate on the PBX wherever they work, be it in the office, at home, on the road, or on a mobile device. PBXtra supports both VoIP calling and traditional phone lines, allowing a smooth transition for businesses upgrading their calling services. Its patented Hybrid-Hosted^™ architecture allows employee identity to be maintained as employees travel between work, home, and hotel. PBXtra, when paired with the award-winning HUD^® presence software, provides a unified view of chat, email, and calling for all fixed and mobile workers.

About Fonality

Fonality, www.fonality.com, is a leader in business phone systems and contact center solutions for small and medium-sized businesses. Used by over 5,000 companies and 100,000 end users in 100 countries, Fonality's award winning IP-PBX VoIP phone systems have connected more than 225,000,000 mission critical phone calls. The PBXtra and trixbox Pro product lines are based on Fonality's patent-pending Anywhere Management^™ Hybrid-Hosted architecture, plus an improved version of the popular open source Asterisk code base which has been modified to add reliability, stability and enterprise-class features. PBXtra and trixbox Pro deliver the advanced capabilities of an enterprise-class phone system for 40 to 80 percent less than traditional offerings. Fonality's fully free and open source telephony platform, trixbox CE (www.trixbox.org), is home to one of the world's largest and fastest growing communities of open source telephony users, with over 200,000 live deployments and 125,000 new downloads each month. Fonality headquarters are in Los Angeles, and the company has offices in the UK, Brazil and Australia. Company investors include Azure Capital Partners and Intel Capital.

Fonality, PBXtra, trixbox and HUD, are registered trademarks of Fonality. Hybrid-Hosted and Anywhere Management are trademarks of Fonality. Other trademarks are the property of their respective holders.

Fonality FACE partners provide the highest quality technology and the deepest integration with Fonality’s IP-PBX VoIP phone systems, and Fonality provides support discounts and incentives to resellers and IT consultants who choose FACE-certified hardware products when building Fonality phone systems for their customers.

“A big problem in this emerging, open market is the glut of questionable hardware and non-compliant providers,” said Chris Lyman, CEO of Fonality. “This creates a confusion which leads to customers inadvertently using sub-standard components, and then paying the price for it. FACE removes any uneasiness about compliance, allowing customers to deploy phone systems with complete confidence.”

Following are comments from FACE partners about the new ecosystem:

“Aastra and Fonality are both committed to developing and implementing open standard VoIP products and systems for the needs of small and medium businesses. Our respective products have been tightly integrated to exceed our customers’ expectations for value and performance.”
— Yves Laliberte, Executive Vice President, Aastra Telecom

“Bandwidth.com is excited to participate as the Platinum network service partner in the Fonality FACE program. This certification is a testament to our commitment to Fonality and to the hundreds of mutual customers that have already benefited from a certified IP communications solution, great rates and unparalleled support all specifically tailored for the business community.”
— Henry Kaestner, CEO, Bandwidth.com.

“By supporting Polycom’s full line of SoundPoint phones, Fonality is able to deliver a reliable, turnkey solution to SMB customers on both PBXtra and trixbox. Together, we provide integrated, cutting-edge solutions that enable our customers to smoothly transition to VoIP for more streamlined, cost-effective business communications.”
— Chalan Aras, Vice President of Marketing, Polycom Voice Communications Solutions Group.

“We’re pleased to be Fonality’s partner to bring the highest quality IP-PBX systems to the SMB. Our award-winning cards combined with Fonality’s breakthrough technology guarantee reliable calls and great voice quality.”
— Dave Mandelstam, CEO, Sangoma

To find out more about Fonality’s business phone systems and for a complete list of FACE-certified components, go to http://www.trixbox.com/partners.

About Fonality

Fonality, www.fonality.com, is a leader in business phone systems and contact center solutions for small and medium-sized businesses. Used by over 5,000 companies and 100,000 end users in 100 countries, Fonality's award winning IP-PBX VoIP phone systems have connected more than 225,000,000 mission critical phone calls. The PBXtra and trixbox Pro product lines are based on Fonality's patent-pending Anywhere Management^® hybrid-hosted^® architecture, plus an improved version of the popular open source Asterisk code base which has been modified to add reliability, stability and enterprise-class features. PBXtra and trixbox Pro deliver the advanced capabilities of an enterprise-class phone system for 40 to 80 percent less than traditional offerings. Fonality's fully free and open source telephony platform, trixbox CE (www.trixbox.org), is home to one of the world's largest and fastest growing communities of open source telephony users, with over 200,000 live deployments and 125,000 new downloads each month. Fonality headquarters are in Los Angeles, and the company has offices in the UK, Brazil and Australia. Company investors include Azure Capital Partners and Intel Capital.

Fonality, PBXtra, trixbox, hybrid-hosted and Anywhere Management are registered trademarks of Fonality. Other trademarks are the property of their respective holders.

“We’ve hit the 225 million call threshold and have proven that Fonality can scale with the market opportunity,” said Chris Lyman, Fonality CEO. “We are on track to serve a broad segment of the 35 million small businesses that will adopt VoIP over the next several years.”

Fonality business phone systems are designed for modern workplaces where companies have a mix of office, roaming and home-based workers. PBXtra supports both VoIP calling and traditional phone lines, allowing a smooth transition for businesses upgrading their calling services. Its patented hybrid-hosted architecture allows employee identity to be maintained as they travel between work, home, and hotel. PBXtra, when paired with the award-winning HUD^® presence software, provides a unified view of chat, email, and calling for all fixed and mobile workers.

trixbox CE, formerly Asterisk@Home, is Fonality’s open source project and one of the world’s largest communities devoted to open source telephony. trixbox CE integrates Asterisk, Linux, MySQL, FreePBX, HUDlite and several additional applications. It operates on a single server, providing companies with a PBX phone system and the surrounding applications needed to support their business. The trixbox community has the largest number of registered users and the most active forums for discussing and resolving open source telephony and Asterisk-based issues.

About Fonality

Fonality is a leader in business phone systems and contact center solutions for small and medium-sized businesses. Used by over 5,000 companies and 100,000 end users in 100 countries, Fonality's award winning IP-PBX VoIP phone systems have connected more than 225,000,000 mission critical phone calls. The PBXtra and trixbox Pro product lines are based on Fonality's patent-pending Anywhere Management^® hybrid-hosted architecture, plus an improved version of the popular open source Asterisk code base which has been modified to add reliability, stability and enterprise-class features. PBXtra and trixbox Pro deliver the advanced capabilities of an enterprise-class phone system for 40 to 80 percent less than traditional offerings. Fonality's fully free and open source telephony platform, trixbox CE, is home to one of the world's largest and fastest growing communities of open source telephony users, with over 200,000 live deployments and 125,000 new downloads each month. Fonality headquarters are in Los Angeles, and the company has offices in the UK, Brazil and Australia. Company investors include Azure Capital Partners and Intel Capital.

Fonality, PBXtra, trixbox, HUD, and Anywhere Management are registered trademarks of Fonality. Other trademarks are the property of their respective holders.

The new FindMe capability in PBXtra 4.0 ups the ante in the Find-Me-Follow-Me feature wars. Not only does it allow employees to decide when and how they will be found according to their personal schedule and rules, but FindMe also has built-in presence detection. The system observes a person’s keyboard and mouse activity and can route calls to their mobile phone or other number when they are inactive on their computer.

Boomerang Mobile Integration deepens Fonality’s commitment toward unifying the PC, the desk phone and the mobile phone. It allows calls sent to mobile phones to be boomeranged back to any extension by pressing a few keys on the mobile phone. Boomeranged calls can also be recorded from a mobile phone and automatically stored on the PBXtra server.

FONcall^® is a new PBXtra plug-in for the Firefox web browser and is the first one-click dialing application for business telephony. It turns a phone number on any site into a link. By clicking the link, PBXtra will automatically take an Aastra and Polycom phone off the hook and dial out to the number hands-free. PBXtra 4.0 also deepens branch office integration by merging spell-by-name directories, allowing callers to dial into one branch and find an employee at any other branch anywhere in the world.

PBXtra 4.0 contains significant enhancements for Fonality’s growing reseller base. A consolidated interface allows resellers to manage all of their PBXtra customers from a single Web-based administration interface, with hot switching between installations. A new network card configuration option allows for custom configuration of analog and PRI and T1 cards. New alerts are now available so resellers can receive email to text messages when issues arise with a PRI, RAID disk, analog line voltage, and a host of other indicators. Country support has also been added so administrators can set a server to the host country it is located in, and PBXtra will automatically configure the relevant telecom settings.

About PBXtra

PBXtra is designed to be an affordable phone system for the modern workplace where companies have a mix of office, roaming and home-based workers. PBXtra automatically switches back and forth between VoIP calling and traditional phone lines, optimizing cost savings and ensuring call quality. Its patented hybrid-hosted architecture allows employee identity to be maintained as they travel between work, home, and hotel. PBXtra, when paired with the award-winning HUD presence software, provides a unified view of chat, email, and calling for all fixed and mobile workers. The entire system can be installed and managed by a non-technical employee, saving companies thousands of dollars traditionally paid to the “phone guy.”

About Fonality

Fonality, www.fonality.com, is a leader in business phone systems and contact center solutions for small and medium-sized businesses. Used by over 5000 companies and 1000,000 end users in 100 countries, Fonality's award winning IP-PBX VoIP phone systems have connected more than 225,000,000 mission critical phone calls. The PBXtra and trixbox Pro product lines are based on Fonality's patent-pending Anywhere Management^® hybrid-hosted architecture, plus an improved version of the popular open source Asterisk code base that has been modified to add reliability, stability and enterprise-class features and delivers the advanced capabilities of an enterprise-class phone system for 40 to 80 percent less than traditional offerings. Fonality's fully free and open source telephony platform, trixbox CE is home to one of the world's largest and fastest growing communities of users of Asterisk-based software, with over 175,000 live deployments and 65,000 new downloads each month. Fonality headquarters are in Los Angeles, and the company has offices in the UK, Brazil and Australia. Company investors include Azure Capital Partners, Intel Capital and Dell.

Fonality, PBXtra, HUD, FindMe with Boomerang, Anywhere Management, Hybrid Hosted, trixbox and trixNet are registered trademarks of Fonality. Other trademarks are the property of their respective holders.

Over the past two years, Insightful has made substantial enhancements to SugarCRM's Sugar Professional product and hosts more than 1,000 seats in 13 countries at the company's three global data centers. By combining Insightful's CRM expertise with Fonality's awarding-winning telephony suite, small businesses will have an affordable solution that unifies employees with presence management, instant messaging, fixed and mobile calling, and provides a single 360-degree view of customers and business partners

"Fonality has over 1,000 hybrid-hosted call centers deployed in 25 different countries and our hybrid-hosted platform is a powerful framework for delivering integrated applications directly to the SMB with no investment in premise equipment required," said Chris Lyman, Fonality CEO. "Telephony and CRM have a naturally concentric relationship, so this is a good place to leverage hybrid-hosted and we are thrilled that the great folks at Insightful have joined forces with us to accelerate our unified offering to the global SMB marketplace."

Marc Englaro, co-founder and CEO of Insightful, is now general manager of Fonality's CRM Division. Before founding Insightful, Englaro was director and principal consultant with Si2, leading its open source consulting practice. He will remain in his role as director of Open Source Industry Australia (OSIA), the country's national industry body for open source adoption. The Insightful team brings valuable CRM development and marketing expertise, and all employees will continue to work for Fonality. The Insightful offices in Australia, New Zealand and Singapore will remain open.

"In Fonality we found a like-minded team which values going beyond simple integration, and building fully conjoined products that expand the definition of what's on the market today," said Englaro. "Together we're going to continue to raise the bar for what people expect from both VoIP and CRM."

About Fonality:

Fonality, www.fonality.com, is a leader in unified communications and contact center solutions for small and medium-sized businesses. Used by over 6,500 companies and 60,000 end users in 97 countries, Fonality's award winning IP-PBX VoIP phone systems have connected more than 155,000,000 mission critical phone calls. The PBXtra and trixbox Pro product lines are based on Fonality's patent-pending Anywhere Management^® hybrid-hosted architecture, plus an improved version of the popular open source Asterisk code base that has been modified to add reliability, stability and enterprise-class features and delivers the advanced capabilities of an enterprise-class phone system for 40 to 80 percent less than traditional offerings. Fonality's fully free and open source telephony platform, trixbox CE (www.trixbox.org) is home to one of the world's largest and fastest growing communities of users of Asterisk-based software, with over 150,000 live deployments and 65,000 new downloads each month. Fonality headquarters are in Los Angeles, and the company has offices in the UK, Brazil and Australia.

Fonality, PBXtra, HUD, trixbox and trixNet are registered trademarks of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality, trixbox, PBXtra and trixNet are not affiliated with, nor endorsed by, Digium Inc. Other trademarks are the property of their respective holders.

PBXtra is a VoIP-capable phone system designed to be purchased, installed and managed by non-technical professionals. Fonality's patent-pending, hybrid-hosted technology enables seamless use of PBXtra to support branch offices, as well as mobile and home-based workers. PBXtra has garnered industry accolades including Editors' Choice by PC Magazine in a recent roundup of competing phone systems from Digium, TalkSwitch and others.

"The open telephony market is continuing to accelerate," said Chris Lyman, Fonality CEO. "Fonality is proud to be leading that charge with PBXtra and trixbox."

Fonality's PBXtra business phone system delivers more functionality with significantly improved ease of use at 40 to 80 percent less than the cost of comparable systems from larger companies. Out of the box, PBXtra supports advanced auto-attendant features, telecommuters, branch offices, drag and drop call controls, conferencing and cross-office intercoms, as well as a host of other easy to use advanced features. Fonality and its partners provide 24/7 technical support and the patent-pending hybrid-hosted architecture ensures reliability by allowing real-time monitoring and remote system management.

About Fonality:

Fonality, www.fonality.com, is a leader in open source, Asterisk-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium-sized businesses, is widely recognized as the world's largest commercial Asterisk-based deployment with over 2,500 systems in 50 countries making over 130 million calls. PBXtra includes a hardened and improved version of the popular open source Asterisk code base which has been modified to add reliability, stability and enterprise-class features. PBXtra uses Fonality's patent-pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 to 80 percent less than traditional offerings. Fonality's trixbox^ˊ www.trixbox.org, is home to trixbox CE, trixbox Pro and one of the world's largest and fastest growing communities of users of Asterisk-based software with an average of 65,000 downloads a month.

Fonality, PBXtra, HUD, trixbox and trixNet are registered trademarks of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality, trixbox, PBXtra and trixNet are not affiliated with, nor endorsed by, Digium Inc. Other trademarks are the property of their respective holders.

PC Magazine praised PBXtra for its ease of use over competing products such as TalkSwitch's 244vs and Digium's Asterisk Appliance. According to the review, "Fonality's PBXtra Standard, a PBX solution with all the basic features that a small or medium-size business needs, offers a number of unique features that simplify management, and a well-designed Web interface elegantly ties its many features together." Of all of the products reviewed, PBXtra earned the highest rating.

"A PC Magazine Editors' Choice is about as good as it gets when it comes to reviews," said Fonality CEO Chris Lyman. "PC Magazine took special note of our patented hybrid-hosted architecture which is what has allowed us to gain such rapid direct adoption into the SMB."

Fonality's PBXtra business phone system delivers more functionality with significantly improved ease-of-use at 40 to 80 percent less than the cost of comparable systems from larger companies. Out of the box, PBXtra supports advanced auto-attendant features, telecommuters, branch offices, drag and drop call controls, conferencing and cross-office intercoms, as well as a host of other easy-to-use advanced features. Fonality and its partners provide 24/7 technical support and a patent-pending hybrid-hosted architecture ensures reliability by allowing real-time monitoring and remote system management.

About Fonality:

Fonality, www.fonality.com, is a leader in open source, Asterisk^®-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium-sized businesses, includes a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and PBXtra is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent-pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 to 80 percent less than traditional offerings, and is deployed at more than 2,000 companies around the world. Fonality's trixbox, www.trixbox.org, one of the world's largest and fastest growing communities of users of Asterisk-based software with an average of 65,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

Fonality, HUD and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality, trixbox and PBXtra are not affiliated with, nor endorsed by, Digium Inc.

BLADE chose PBXtra because it is a fully functional IP PBX system that is easier to scale, use and manage than a Nortel system. PBXtra's flexible, standards-based architecture makes it easy to quickly scale beyond 90 seats, while Nortel's digital and IP hybrid solution has hard system limitations, which require a significant system overhaul to increase capacity.

PBXtra is also designed from the ground up to be one of the world's easiest phone systems to set up, use, manage and expand. PBXtra gives BLADE the ability to self-manage its phone system, while traditional alternatives require steep technician fees of $150 an hour, or more, to simply add another person to the system.

"Fonality's PBXtra is extremely attractive to me since it allows me to worry less about my phone system, so I can focus more time on my regular job. In Fonality's support model, everything is easily included so if there is new software, I get it for free. Nortel was trying to charge me around $5,000 a year just for service and support, but high quality service and support comes free from Fonality." said Amon Prasad, director of information technology at BLADE.

Fonality's patent-pending, hybrid-hosted technology also appealed to BLADE because it seamlessly integrates mobile and home-based workers into the company's phone system. "We were excited to find out that we can now have employees work from an IP phone at home or a softphone on their laptop while keeping their same four digit extension," said Prasad. "Fonality makes this process so much easier because we can give remote workers a handset at their home or remote office and they can plug it into their DSL/cable line and be connected. It's just that simple."

"Signing BLADE is just another proof-point that the SMB market is ready for another option. They are sick and tired of overpaying for a phone system that has a limited feature set." said Chris Lyman, CEO of Fonality.

"Sick and tired is right! For the cost of one Nortel system, I could get two Fonality systems and still have change left over!" said Amon Prasad, director of information technology at BLADE.

Fonality is a recognized leader in bringing a wide range of open source solutions to the market. PBXtra includes a modified version of the open source IP-PBX platform Asterisk^® that Fonality has hardened for reliability and layered with feature-rich applications. Fonality's business phone systems deliver more functionality with significantly improved ease-of-use at 40 to 80 percent less than the cost of comparable systems from larger companies. Out of the box, PBXtra Standard, PBXtra Professional and PBXtra Call Center support VoIP calling, advanced auto-attendant features, telecommuters, branch offices, drag-and-drop call control, conferencing and intra-office intercom, as well as a host of other advanced features. Fonality provides 24x7 technical support, and its patent-pending hybrid-hosted architecture ensures reliability by allowing real-time monitoring and remote system management.

PBXtra is available direct from Fonality or through a Fonality reseller. For more information about PBXtra or becoming a Fonality reseller, visit www.fonality.com

About Fonality:

Fonality, www.fonality.com, is a leader in open source, Asterisk-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium-sized businesses, includes a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and PBXtra is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent-pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 to 80 percent less than traditional offerings, and is deployed at more than 2,000 companies around the world. Fonality's trixbox, www.trixbox.org, one of the world's largest and fastest growing communities of users of Asterisk-based software with an average of 65,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

Fonality, HUD and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality, trixbox and PBXtra are not affiliated with, nor endorsed by, Digium Inc.

"Fonality has been recognized with a 2006 Product of the Year Award for their excellence in technological advancement and application refinement," said Rich Tehrani, TMC President and Group Editor-in-Chief of Communications Solutions. "The company has proven they are committed to quality and excellence in solutions that deliver a great customer experience and demonstrable ROI for the companies that use them. I am pleased to honor their hard work and accomplishments."

"PBXtra means value," said Chris Lyman, Fonality CEO. "It delivers twice as much as the big boys' offerings for a fraction of the price. It's great news that Communications Solutions has recognized the full-featured solution PBXtra provides and we will not take our foot off the pedal when it comes to providing the best value for our customers."

Fonality's PBXtra business phone system delivers more functionality with significantly improved ease-of-use at 40 to 80 percent less than the cost of comparable systems from larger companies. Out of the box, PBXtra supports advanced auto-attendant features, telecommuters, branch offices, drag and drop call controls, conferencing and cross-office intercoms, as well as a host of other easy-to-use advanced features. Fonality and its partners provide 24/7 technical support and a patent-pending hybrid-hosted architecture ensures reliability by allowing real-time monitoring and remote system management.

For more information about Fonality products or becoming a Fonality reseller, visit www.fonality.com

About Fonality:

Fonality, www.fonality.com is a leader in open source, Asterisk^®-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium-sized businesses, includes a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 to 80 percent less than traditional offerings, and is deployed at more than 2,000 companies around the world. Fonality's trixbox^®, www.trixbox.org, the world's largest and fastest growing community of users of Asterisk-based software with an average of 75,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

Fonality, HUD and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality, trixbox and PBXtra are not affiliated with, nor endorsed by, Digium Inc.

PC Mall is one of the first direct marketers to sell business class VoIP phone systems directly to SMB customers. SMBs recognize the power of new, low-cost communications products and are expected to spend $6.7 billion on new gear by the end of 2007 (Source: AMI-Partners). Demand for IP PBXs, or business phone systems, is expected to grow by 33 percent over the next five years. PBXtra, available in Standard, Enterprise and Call Center Editions, delivers enterprise-class features to this market at a price point they can afford.

"With PBXtra, we can now provide our customers with an affordable, easy-to-use VoIP system that delivers all of the features of large enterprise products," said Gertrud Pillay, PC Mall vice president of marketing. "It's important that we offer a range of products that deliver maximum value at every price point."

"PC Mall has incredible reach into the SMB market and we are fortunate to be partnering with them to tap the demand for easy-to-use telephony," said Chris Vuillaume, vice president of business development and channels for Fonality. "It's an opportunity for PC Mall to cut through the hype of VoIP and deliver an IP-PBX solution that is full-featured, very easy to implement, fully supported and can be administered by somebody non-technical."

Fonality's PBXtra business phone system delivers more functionality with significantly improved ease-of-use at 40 to 80 percent less than the cost of comparable systems from larger companies. Out of the box, PBXtra supports advanced auto-attendant features, telecommuters, branch offices, drag and drop call controls, conferencing and cross-office intercoms, as well as a host of other easy-to-use advanced features. Fonality and its partners provide 24/7 technical support and a patent-pending hybrid-hosted architecture ensures reliability by allowing real-time monitoring and remote system management.

About Fonality:

Fonality, www.fonality.com, is a leader in open source, Asterisk^®-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium-sized businesses, includes a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and PBXtra is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent-pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 to 80 percent less than traditional offerings, and is deployed at more than 2,000 companies around the world. Fonality's trixbox, www.trixbox.org, one of the world's largest and fastest growing communities of users of Asterisk-based software with an average of 65,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

Fonality, HUD and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality, trixbox and PBXtra are not affiliated with, nor endorsed by, Digium Inc.

Small and medium-sized businesses (SMBs) need call center capabilities to compete effectively in today.s marketplace. Previously, these companies only had two options for a call center solution. They could outsource call center operations to a costly third party, losing control of their most important calls in the process, or admit defeat and force-fit a regular office phone system into a contact center, often with small-sounding and unprofessional results. Now, with PBXtra Call Center Edition, SMBs have access to a robust call center solution that lets them operate like a large call center with increased reporting efficiencies, remote access capabilities and other advanced call center features for a fraction of the price.

"Fonality heard from hundreds of small and mid-size companies that they needed advanced call center capabilities, even in offices as small as 10 people," said Chris Lyman, CEO of Fonality. "Before, these customers were told they were too small for a call center solution or the prices were way out of their range. Fonality's call center systems have leveled the playing field by providing a way for SMBs to compete with larger companies without breaking the bank."

PBXtra Call Center Edition is a full-featured call center for SMBs that supports agents working on premise, at home or from any remote location. PBXtra Call Center Edition gives agents the flexibility to be part of distributed queues and still seamlessly communicate with associates over the company phone system. Designed for companies with two to 200 agents, PBXtra Call Center includes feature-rich call center capabilities such as branch office agent sharing, on-the-fly recording, barging, monitoring, text whisper/coach, web and phone agent log-in, real-time and historical graphical queues and agent presence management.

About Fonality:

Fonality, www.fonality.com, is a leader in open source, Asterisk^&174;-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium-sized businesses, includes a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and PBXtra is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent-pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 to 80 percent less than traditional offerings, and is deployed at more than 2,000 companies around the world. Fonality's trixbox, www.trixbox.org, one of the world's largest and fastest growing communities of users of Asterisk-based software with an average of 65,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

Fonality, HUD and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality, trixbox and PBXtra are not affiliated with, nor endorsed by, Digium Inc.

For more than 15 years, Matrix Business Technologies, a Platinum Equity company, has specialized in providing a wide range of voice and data services specifically targeted to enterprises with 10-100 employees, and currently has more than 35,000 business customers. Fonality's PBXtra business phone system gives MSPs a managed voice offering to complement their existing network services (Analog, Digital PRI or SIP). Together, Fonality and Matrix are offering an out-of-the box voice solution and providing customers with a single source for a T-1 line and phone system, with absolutely no upfront customer costs.

Fonality's award-winning PBXtra phone system coupled with Matrix's current T-1 Velocity voice and data offering will provide a complete communication system, including a 24x7 network center and account management services. This hybrid-hosted phone system, powered by Fonality's PBXtra, is Matrix's only managed IP PBX solution and is supported 24x7, thus fulfilling the request of SMBs to only have one support line. Matrix customers will be able to choose from all of Fonality's award-winning PBXtra offerings: PBXtra, PBXtra Professional or PBXtra Call Center Edition, as well as its Heads Up Display (HUD^®) application.

"More and more SMBs are clamoring to get their hands on a high-quality, value-priced phone system," said Chris Vuillaume, vice president of business development and channel at Fonality. "By partnering with Matrix we are making it even easier for businesses throughout the U.S. to have access to just that. Now Matrix customers only have to make one stop for everything related to their communication needs, from the T-1 line to the phone; plus everything is under one monthly bill with a single point of contact."

Fonality's Managed Services Program (FMSP) targets both telecom and IT/data service providers and addresses the growing demand for managed turnkey solutions in the SMB market. PBXtra's patent-pending hybrid-hosted architecture allows for easy integration into current managed service models while providing enterprise class IP PBX features and a low total cost of ownership. Fonality's three-tier program scales easily depending on the goals and operational capabilities of the MSP, and PBXtra integrates into their infrastructure with no impact on existing network components.

"Money in the bank matters most to SMB decision makers," said Russ Lambert, CEO of Matrix Business Technologies. "Typically, our customers expect to pay a significant upfront fee for servers, handsets, configuration and circuit installs, plus fees to a VAR to coordinate all of it. The Matrix-Managed/Fonality-powered phone system eliminates the need to empty the vault in order to have a voice- and data-connected, fully managed, easily installed, feature-rich, on-premises phone system. It's an incredible value at an aggressive monthly price," he added.

PBXtra complements a MSP's voice and data services with its improved ease-of-use for an enterprise-class product at 40 to 80 percent less than the cost of comparable systems from established PBX vendors. Out of the box, PBXtra supports advanced auto-attendant features, telecommuters, branch offices, drag and drop call controls, conferencing and cross-office intercoms, as well as a host of other easy-to-use advanced features.

For more information about the Fonality Managed Services Program please visit www.fonality.com/msp

Pricing and Availability The Matrix managed PBX system, powered by Fonality, will be available for limited distribution in June 2007, with general availability in early Q3. Inquire about Matrix by visiting www.matrixbt.com or calling 1-866-728-7490.

About Fonality:

Fonality, www.fonality.com, is a leader in open source, Asterisk-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium-sized businesses, includes a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 to 80 percent less than traditional offerings, and is deployed at more than 2,000 companies around the world. Fonality's trixbox ^™, www.trixbox.org, the world's largest and fastest growing community of users of Asterisk-based software with an average of 75,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

About Matrix Business Technologies:

Matrix Business Technologies, www.matrixbt.com, a Platinum Equity company, is a recognized leader in the telecommunications industry, serving small, medium and large-size businesses throughout the United States. As an Integrated Communications Provider, Matrix offers a portfolio of services including: local, 1+ long distance and toll-free voice services, web/audio conferencing and a wide range of data services, such as dedicated Internet access, MPLS IPVPN, frame relay and point-to-point.

Matrix provides the Power of One: one carrier to bundle services, one consolidated invoice and one point of contact, which is why so many companies choose Matrix as their service provider.

Fonality, HUD and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality and PBXtra are not affiliated with, nor endorsed by, Digium Inc.

Fonality is transforming the telephony market by combining the cost savings of open source software with award-winning ease-of-use, making sophisticated business phone systems a reality for small to medium-sized businesses worldwide. Fonality's patent-pending, hybrid-hosted technology enables seamless use of PBXtra to support branch offices, as well as mobile and home-based workers.

"For three years, Fonality has been the leader in the commercial Asterisk market," said Chris Lyman, CEO of Fonality. "This milestone of 75 million calls illuminates the scalability of our platform."

Fonality is a recognized leader in bringing a wide range of open source solutions to the market. PBXtra includes a modified version of the open source IP-PBX platform Asterisk that Fonality has hardened for reliability and layered with feature-rich applications. Fonality's business phone systems deliver more functionality with significantly improved ease-of-use at 40 to 80 percent less than the cost of comparable systems from larger companies. Out of the box, PBXtra Standard, PBXtra Professional and PBXtra Call Center support VoIP calling, advanced auto-attendant features, telecommuters, branch offices, drag-and-drop call control, conferencing and intra-office intercom, as well as a host of other advanced features. Fonality provides 24x7 technical support, and its patent-pending hybrid-hosted architecture ensures reliability by allowing real-time monitoring and remote system management.

PBXtra is available direct from Fonality or through a Fonality reseller. For more information about PBXtra or becoming a Fonality reseller, visit www.fonality.com.

About Fonality:

Fonality, www.fonality.com, is a leader in open source, Asterisk-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium-sized businesses, includes a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and PBXtra is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent-pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 to 80 percent less than traditional offerings, and is deployed at more than 2,000 companies around the world. Fonality's trixbox, www.trixbox.org, one of the world's largest and fastest growing communities of users of Asterisk-based software with an average of 65,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

Fonality, HUD and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality, trixbox and PBXtra are not affiliated with, nor endorsed by, Digium Inc.

"Pulvermedia is proud to name Fonality to this year's Pulver 100," said Jeff Pulver, founder and chairman of Pulvermedia. "The Pulver 100 continues to grow in significance, because companies like Fonality are helping to drive acceptance for IP telephony among smaller businesses with their PBXtra^™ product line."

"With 2,000 businesses in 37 countries using our phone system, it's great to be recognized for the innovation we're delivering and the momentum we've created," said Chris Lyman, Fonality CEO. "We are thrilled to earn this award from Pulvermedia and look forward to celebrating with fellow honorees next week at VON."

Originally introduced in 2002, the Pulver 100 features private companies that impact the distribution of communications and entertainment with Internet technology. These companies have substantial real-world deployments and enjoy significant growth rates. The value chain characterized by the Pulver 100 differs from the vertically integrated model of the last century, focusing more on the direct interface to customers and consumers which has been brought about by the Internet.

About Fonality

Fonality, www.fonality.com, is a leader in open source, Asterisk^®-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium-sized businesses, includes a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and is one of the world's largest commercial Asterisk-based deployments. PBXtra uses Fonality's patent pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 to 80 percent less than traditional offerings, and is deployed at more than 2,000 companies around the world. Fonality's trixbox^™, www.trixbox.org, the world's largest and fastest growing community of users of Asterisk-based software with an average of 65,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

For a demonstration of Fonality products visit VON booth #733.

Fonality, HUD and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium^®, Inc. Fonality and PBXtra are not affiliated with, nor endorsed by, Digium Inc.

"TriCon considers VoIP as an integral part of managed service solutions, but traditionally VoIP has been very cost prohibitive to implement, so having a solution like PBXtra puts us well ahead of the game," said Dave Kawula, managing partner and technical lead at TriCon Technical Services. "We can implement our VoIP solutions in about half the time with a cost savings of more than 40 percent passed on to our clients. I look forward to working with Fonality to grow our managed VoIP offerings."

Fonality's Managed Services Program targets both telecom and IT/data service providers, and addresses the growing demand for managed turn-key solutions in the SMB market. PBXtra's patent-pending hybrid-hosted architecture allows for easy integration into current managed service models while providing enterprise class IP PBX features and a low total cost of ownership. Fonality's three-tier program scales easily depending on the goals and operational capabilities of the MSP, and PBXtra integrates into their infrastructure with no impact on existing network components.

"Voice is the obvious next service for managed service providers and fits seamlessly with current product offerings," said Chris Vuillaume, vice president of business development and channels for Fonality. "We are thrilled to be working with TriCon Technical Services, and to finally deliver an enterprise-class phone system to a market that previously did not have access to it."

Fonality's PBXtra business phone system delivers more functionality with significantly improved ease-of-use at 40 to 80 percent less than the cost of comparable systems from established PBX vendors. Out of the box, PBXtra supports advanced auto-attendant features, telecommuters, branch offices, drag and drop call controls, conferencing and cross-office intercoms, as well as a host of other easy-to-use advanced features. Fonality and its partners provide 24/7 technical support and a patent-pending hybrid-hosted architecture that ensures reliability by allowing real-time monitoring and remote system management.

For more information about the Fonality Managed Services Program please visit www.fonality.com/msp

About Fonality

Fonality, www.fonality.com, a leader in open source, Asterisk®-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium-sized businesses, includes a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 to 80 percent less than traditional offerings, and is deployed at more than 2,000 companies around the world. Fonality's trixbox, www.trixbox.org, the world's largest and fastest growing community of users of Asterisk-based software with an average of 75,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

Fonality, HUD and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality and PBXtra are not affiliated with, nor endorsed by, Digium Inc.

"Our unique hybrid-hosted model gives service providers a standards-based SIP solution that can be fully managed from a centralized Web management interface, and requires no new hardware or software," said Chris Vuillaume, vice president of business development and channels for Fonality. "We are redefining the landscape for providers and giving them a low-risk option for moving into telephony and tapping the ballooning opportunity for VoIP services."

Fonality's Managed Services Program targets both telecom and IT/data service providers, and addresses the growing demand for managed turnkey solutions in the small and medium-sized business market. PBXtra's hybrid-hosted architecture allows for easy integration into current managed service models while providing enterprise class IP PBX features and a low total cost of ownership. Fonality's three-tier program scales easily depending on the goals and operational capabilities of the MSP, and PBXtra integrates into their infrastructure with no impact on existing network components.

Fonality is hosting a webinar on Tuesday, March 13 at 9 a.m. PDT for service providers interested in learning more about the Fonality Managed Services Program. Fonality's Dave Roy, director of managed services, and Corey Brundage, director of product management, will demonstrate Fonality's award-winning PBXtra business phone system, explain how the Fonality Managed Services Program works, and discuss how service providers can benefit from becoming a certified Fonality partner.

Fonality's PBXtra business phone system delivers more functionality with significantly improved ease-of-use at 40 to 80 percent of the cost of comparable systems from established PBX vendors. Out of the box, PBXtra supports advanced auto-attendant features, telecommuters, branch offices, drag and drop call controls, conferencing and cross-office intercoms, as well as a host of other easy-to-use advanced features. Fonality and its partners provide 24/7 technical support and a patent-pending hybrid-hosted architecture ensures reliability by allowing real-time monitoring and remote system management.

The MSPAlliance is a global organization made up of more than 350 worldwide service providers and technology vendors committed to creating awareness for the value and benefit of using MSPs.

For more information about the Fonality Managed Services Program, or to sign up for the webinar, please visit www.fonality.com/webinar.

About Fonality:

Fonality, www.fonality.com, is a leader in open source, Asterisk®-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium-sized businesses, includes a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 to 80 percent less than traditional offerings, and is deployed at more than 2,000 companies around the world. Fonality's trixbox, www.trixbox.org, the world's largest and fastest growing community of users of Asterisk-based software with an average of 75,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

Fonality, HUD and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality and PBXtra are not affiliated with, nor endorsed by, Digium Inc.

"When people hear "call center" they think about thousands of agents in an off-shore facility. No longer," said Fonality CEO, Chris Lyman. "Fonality has built a call center that mimics the "work anywhere" functionality of the virtual call center, yet has the enterprise feature set of a premise call center, and it is at a ridiculously low price point."

New in PBXtra Call Center, is the ability to manage call queues and agents across multiple branch offices as well as support for home-based workers and agents on cell phones. New web-based reporting capabilities deliver graphically-rich, historical ACD reports and real-time visibility into the health of call queues. PBXtra Call Center is also available with HUD® Agent, a universal contact management application that provides agent presence management, whether that agent is in the office or telecommuting. In addition, supervisors can barge, record or monitor calls in real-time even if they are located in a different country than the agent they are managing.

Fonality is a recognized leader in bringing a wide range of open source solutions to the market. PBXtra includes a modified version of the open source IP-PBX platform Asterisk® that Fonality has hardened for reliability and layered with feature-rich applications. Fonality's business phone systems deliver more functionality with significantly improved ease-of-use at 40 percent to 80 percent of the cost of comparable systems from larger companies. Out of the box, PBXtra Standard, PBXtra Professional and PBXtra Call Center support VoIP calling, advanced auto-attendant features, telecommuters, branch offices, drag-and-drop call control, conferencing and intra-office intercom, as well as a host of other advanced features. Fonality provides 24x7 technical support, and its patent-pending hybrid-hosted architecture ensures reliability by allowing real-time monitoring and remote system management.

PBXtra Call Center is available immediately direct from Fonality or through a Fonality reseller. Pricing is $2,995 for unlimited seat licenses. For more information about Fonality products or becoming a Fonality reseller, visit www.fonality.com.

About Fonality

Fonality, www.fonality.com, is a leader in open source, Asterisk-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium businesses, includes a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 percent to 80 percent less than traditional offerings, and is deployed at more than 1,600 around the world. Fonality's trixbox, www.trixbox.org, the world's largest and fastest growing community of users of Asterisk-based software, with an average of 75,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

Fonality, HUD and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality and PBXtra are not affiliated with, nor endorsed by, Digium Inc.

The IP PBX market is expected to grow at a compound annual growth rate of more than 23 percent and reach $8.9 billion in 2009 (Source: IDC). Fonality has already demonstrated significant business success and the company achieved profitability in 2006. Fonality is growing at monthly rate of ten percent and call volume has grown by 400 percent per year over the past three years. The company now serves more than 1,600 businesses in 25 countries with 40,000 individual users who have made over 65 million phone calls over the company's PBXtra™ hybrid-hosted business phone system.

"Pairing industry standard hardware, such as Intel server and communication platforms, with open source telephony software can create a unique ecosystem that results in lower cost, high-end features, better ease-of-use and the potential for richer telephony environments down the road," said Lisa Lambert, managing director, Software and Solutions Group, Intel Capital. "Fonality is positioned to deliver this solution to the global mid-market and increase PC penetration in the emerging market for open source telephony."

"Businesses are learning that they can finally afford the enterprise-class phone system they have always needed," said Fonality CEO Chris Lyman. "Fonality is able to change the cost dynamics of the PBX market so radically with the one-two punch of open source telephony and commoditized PC hardware."

Fonality's award-winning PBXtra business phone system delivers more functionality with significantly improved ease-of-use at 20 percent to 50 percent of the cost of comparable systems from established PBX vendors. PBXtra supports, out of the box, advanced auto-attendant features, telecommuters, branch offices, drag and drop call controls, conferencing and cross-office intercoms, as well as a host of other easy-to-use advanced features. Fonality provides 24 x 7 technical support and its patent-pending hybrid-hosted architecture ensures reliability by allowing real-time monitoring and remote system management.

Fonality is a recognized leader in bringing a wide range of open source solutions to the market. PBXtra is based on the open source IP-PBX platform Asterisk® , hardened for reliability and layered with feature-rich applications. Fonality also manages the trixbox open source telephony platform and community, with over 75,000 downloads of the trixbox application per month. The powerful combination of PBXtra, which has more commercial Asterisk-based deployments than any other provider, and trixbox, home to the largest and fastest growing Asterisk-based and open source telephony community, allows Fonality to be a leader in open source telephony across the spectrum, from fully supported commercial solutions to a free, flexible open source project and community.

Fonality will use the proceeds of this financing to increase product innovation for both the trixbox open source platform and the PBXtra commercial product line. The company will also aggressively grow its channel presence, with a strong focus on international distribution, with support from Intel.

About Fonality

Fonality, www.fonality.com, is a leader in open source, Asterisk-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium businesses, includes a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 percent to 80 percent less than traditional offerings, and is deployed to more than 40,000 business users in the U.S. and other countries. Fonality's trixbox, www.trixbox.org, the world's largest and fastest growing community of users of Asterisk-based software, with an average of 75,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

Fonality and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality and PBXtra are not affiliated with, nor endorsed by, Digium Inc.

"We are elated that Internet Telephony magazine has awarded Fonality a 'Product of the Year Award' two years in a row!" said Chris Lyman, Fonality's founder and CEO. "HUD allows employees to control their phone and phone system in real-time, with their mouse and it is a revolutionary experience."

HUD is a universal contact management application that provides company-wide visibility and interaction with every employee from the desktop and includes secure chat, cell phone integration and employee presence management. Together, with PBXtra™, these award winning products challenge mainstream PBX leaders and allow Fonality to provide enterprise-class features to all markets.

"Internet Telephony is proud to bestow Fonality with a 2006 Product of the Year Award. Each year Internet Telephony magazine recognizes companies that have demonstrated excellence in technological advancement and application refinements," said Rich Tehrani, TMC President and Editor-in-Chief of Internet Telephony magazine. "Fonality has proven they are committed to quality and excellence while addressing real needs in the marketplace. We're proud to honor their hard work and accomplishments and look forward to more innovative solutions from them in the future."

About Fonality

Fonality, www.fonality.com, is a leader in open source, Asterisk®-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium businesses, includes a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 percent to 80 percent less than traditional offerings, and is deployed to more than 40,000 business users in the U.S. and other countries. Fonality's trixbox, www.trixbox.org, the world's largest and fastest growing community of users of Asterisk-based software, with an average of 75,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

About Internet Telephony magazine

Since the first issue in February of 1998, Internet Telephony is the only magazine that focuses on providing information in IP communications technologies. Internet Telephony magazine provides readers with the best information necessary to learn about and purchase the equipment, software, and services. Internet Telephony offers rich content from solutions-focused editorial content to reviews on products and services from TMC Labs and Miercom. The only BPA-audited publication that's 100% dedicated to providing the highest quality content for the IP communications market, Internet Telephony has 55,000 dedicated readers.

Fonality and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality and PBXtraare not affiliated with, nor endorsed by, Digium Inc

For the first time, Fonality is delivering resellers higher profit margins, and the ability to provision IP phones and move phone licenses. These new programs combined with Fonality's new middle market products, PBXtra Professional Edition IP-PBX and HUD (Heads-Up Display) Team application, equip resellers with everything they need to deliver higher margin, open source phone systems to the middle market.

"The open source revolution is changing the landscape of the telephony channel forever," said Chris Vuillaume, vice president of business and channel development at Fonality. "We created this new program to eliminate problems resellers expressed about traditional PBX and IP-PBX telephony reseller programs. Our goal is to be the easiest telephony company to deal with by providing resellers with higher profits, best-of-breed products, dedicated demand creation and outstanding sales, training and mentoring support."

PBXtra, Fonality's enterprise-class IP-PBX, is based on a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features. The new releases of PBXtra Professional Edition and HUD Team provide resellers with the ability to offer companies with 50 to 500 employees the more advanced capabilities they need. In addition, PBXtra's hybrid model that combines public telephone and VoIP network support, and Fonality's experienced 24x7 technical support team deliver rock solid reliability to all customers.

"Fonality's new program has a lot of advantages, including higher profits and the ability for resellers to provision IP phones themselves," said David Burr, president, Converged Network & Technology Partners based in Salt Lake City. "For us, customer response to Fonality's PBXtra products has been excellent; they especially like the value pricing, how easy the products are to use and the self administration capabilities."

Fonality's Business Partner Program offers resellers extensive online training, support and demand creation programs through its three membership levels: Premium, Authorized or Affiliate. Each level includes different support options and business incentives from Fonality depending on the level of reseller commitment. Resellers choose the program that best meets their needs, depending on the size of their organization, technical expertise and infrastructure.

For more information about the new Fonality reseller program, visit www.fonality.com

About Fonality

Fonality, www.fonality.com, is a leader in open source, Asterisk-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium businesses, is based on a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 percent to 80 percent less than traditional offerings, and is deployed to more than 18,000 business users in the U.S. and other countries. Fonality's trixbox^®, www.trixbox.org, the world's largest community of users of Asterisk-based software, with an average of 45,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

Fonality and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk^® is a registered trademark of Digium^®, Inc. Fonality and PBXtra are not affiliated with, nor endorsed by, Digium ^® Inc.

"With the open source roots of Fonality's PBXtra, we are able to offer businesses the one-two punch of enterprise-class features and value pricing," said Chris Lyman, Fonality's founder and CEO. "It's no wonder we are growing so fast and so many companies are relying on PBXtra to provide them with the rock solid phone system they need to run their business."

PBXtra, Fonality's enterprise-class IP-PBX, is based on a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features. PBXtra is less expensive and easier to deploy than all other major PBX offerings on the market today. The price advantage comes from Fonality's use of Asterisk-based open source technology to deliver the PBX foundation. The advanced, enterprise-class features and management ease come from Fonality's innovative PBXtra application with its intuitive, web-based interface designed for the average business owner. In addition, PBXtra's hybrid model that combines public telephone and VoIP network support, and Fonality's experienced 24x7 technical support team delivers rock solid reliability to all customers.

PBXtra is available direct from Fonality or through a Fonality reseller. For more information about PBXtra or becoming a Fonality reseller, visit www.fonality.com.

About Fonality

Fonality, www.fonality.com, is a leader in open source, Asterisk-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium businesses, is based on a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 percent to 80 percent less than traditional offerings, and is deployed to more than 18,000 business users in the U.S. and other countries. Fonality's trixbox^®, www.trixbox.org, the world's largest community of users of Asterisk-based software, with an average of 45,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

Fonality and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk^® is a registered trademark of Digium^®, Inc. Fonality and PBXtra are not affiliated with, nor endorsed by, Digium^® Inc.

"Arnold's background and experience creating successful brands and go-to-market programs for companies and products like Atari and Sound Blaster in the consumer space and Keynote Systems in the B2B space is exactly what we need to take Fonality to the next level," said Chris Lyman, Fonality's founder and CEO. "His contributions will help build huge value for the company and dramatically increase market awareness for the organization and its branded products."

Waldstein began his career in computer gaming and multimedia entertainment at the "new" Atari, where he was responsible for publishing hundreds of games and taking the company public. He was also one of the original executives at Creative Labs, where he built the Sound Blaster brand over four years from $5M in sales to $1.2B, developed it into a household name, sold 80 million units and executed an extremely successful public offering. For the last 10 years, Waldstein has worked with startups and public companies in the consumer and B2B technology sectors, raising funds, building brands and executing distribution strategies.

"I was attracted to Fonality because of its great products, leadership and early market success," said Waldstein. "Fonality has the potential to become a huge B2B powerhouse over the next few years and I am privileged to be driving the marketing efforts."

About Fonality
Fonality, www.fonality.com, is a leader in open source, Asterisk^®-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium businesses, is based on a modified version of the popular open source Asterisk^® code base. Fonality has modified Asterisk^® to add reliability, stability and enterprise-class features, and is the world's largest commercial Asterisk^®-based deployment. PBXtra uses Fonality's patent pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 percent to 80 percent less than traditional offerings, and is deployed to more than 18,000 business users in the U.S. and other countries. Fonality's trixbox, www.trixbox.org, the world's largest community of users of Asterisk^®-based software, with an average of 45,000 downloads a month, provides a free, easy to install Asterisk^®-based VoIP phone system.

Fonality and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk^® is a registered trademark of Digium^®, Inc. Fonality and PBXtra are not affiliated with, nor endorsed by, Digium^® Inc.

"The PBX giants have a major problem. They pay their channel a larger commission than we sell our entire solution for. To make their headache worse, we have feature parity with them for often half the price," said Chris Lyman, Fonality's founder and CEO. "We are the leaders in this open source telephony revolution for three reasons: reliability, reliability and reliability."

PBXtra, Fonality's enterprise-class IP-PBX, is based on a modified version of the popular open source Asterisk^® code base. Fonality has modified Asterisk^® to add reliability, stability and enterprise-class features. PBXtra is less expensive and easier to deploy than all other major PBX offerings on the market today. The price advantage comes from Fonality's use of Asterisk^®-based open source technology to deliver the PBX foundation. The advanced, enterprise-class features and management ease come from Fonality's innovative PBXtra application with its intuitive, web-based interface designed for the average business owner. In addition, PBXtra's hybrid model that combines public telephone and VoIP network support, and Fonality's experienced 24x7 technical support team delivers rock solid reliability to all customers.

The new releases of PBXtra Professional Edition and HUD Team provide companies with 50 to 500 employees with the more advanced capabilities they need. PBXtra Professional Edition includes all the features in PBXtra Standard Edition such as telecommuting, branch office support, voicemail-to-email, click-to-call, VoIP, softphones and support for IP and analog phones. In addition, PBXtra Professional Edition adds more advanced call management capabilities including the ability to build groups of employees and assign them permissions, zone paging, zone intercom across the Aastra and Polycom phone lines, NPA/NXX call routing and unlimited party conference bridge.

HUD Team, Fonality's new universal contact management application, provides company-wide visibility and interaction with every employee from the desktop and includes secure enterprise chat, cell phone integration and employee presence management. The software supports Windows and Mac desktops and provides companies with extremely high value.

PBXtra Professional Edition and HUD Team are available immediately direct from Fonality or through a Fonality reseller. Pricing for PBXtra Professional Edition is $1,995 and HUD Team is $995 for unlimited seat licenses. For more information about PBXtra, HUD or becoming a Fonality reseller, visit www.fonality.com.

About Fonality
Fonality, www.fonality.com, is a leader in open source, Asterisk^®-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium businesses, is based on a modified version of the popular open source Asterisk^® code base. Fonality has modified Asterisk^® to add reliability, stability and enterprise-class features, and is the world's largest commercial Asterisk^®-based deployment. PBXtra uses Fonality's patent pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 percent to 80 percent less than traditional offerings, and is deployed to more than 18,000 business users in the U.S. and other countries. Fonality's trixbox, www.trixbox.org, the world's largest community of users of Asterisk^®-based software, with an average of 45,000 downloads a month, provides a free, easy to install Asterisk^®-based VoIP phone system.

Fonality and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk^® is a registered trademark of Digium^®, Inc. Fonality and PBXtra are not affiliated with, nor endorsed by, Digium^® Inc.

"Chris and Bruce bring outstanding experience to Fonality with their proven track records of building successful public and private companies within the telecom and data sectors," said Chris Lyman, Fonality's founder and CEO. "With these great additions to the management team, Fonality is well positioned to handle our extremely rapid growth."

Fonality's new vice president of business development and channels, Chris Vuillaume, brings 15 years of telecommunications industry experience. Vuillaume was previously vice president for the IP telephony product marketing group at Alcatel (NYSE: ALA), where he was responsible for marketing and business development for the company's North American IP telephony practice, including distribution channels. He also has a rich entrepreneurial history, notably co-founding Santa Clara-based NetManSys, a developer of software to manage devices that transmit voice and data traffic over telecommunications networks, where he served as vice president of marketing, grew the company from inception to 80 employees and ultimately sold it to a private acquirer.

Technology industry veteran Bruce Runyan, whose career spans more than 30 years, is Fonality's new vice president of operations and customer care. Runyan is responsible for all post-sale customer interactions and back office activities, from provisioning to deployment and customer care. Prior to Fonality, he held executive positions at three public companies including director of global programs at Autodesk (NASDAQ: ADSK), vice president and general manager of the consulting services division at Genesys Telecommunications (NYSE: ALA) and CIO at Borland International (NASDAQ: BORL). As employee 141 at Borland, he created, automated and scaled the company's back office capacity to handle more than 60,000 orders per shift. Runyan was also president and COO of TelePost, a unified messaging start-up, and has provided senior management and operational consulting services to many Silicon Valley companies.

About Fonality
Fonality, www.fonality.com, is a leader in open source, Asterisk-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium businesses, is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 percent to 80 percent less than traditional offerings. Fonality's PBXtra products are deployed to more than 18,000 business users across the U.S. and internationally. trixbox, www.trixbox.org, the world's largest Asterisk community with an average of 1,500 downloads a day, provides a free, easy to install Asterisk-based VOIP phone system.

Fonality and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium.

"Fonality shares my vision of making Asterisk free and easy for everyone," said Gillis. "They have already proven to me how serious they are by committing a team of engineers to help create the next version of trixbox."

trixbox, formerly Asterisk@Home, is the world's leading distributor of Asterisk based software, with an average of 1,500 downloads a day. It was designed to be the easiest to use version of free Asterisk, which has contributed to its huge following. The value of trixbox is that, in under an hour, a non-technical user can download and install, not only Asterisk, but Linux, SugarCRM, MySQL, FreePBX and other applications. trixbox tightly integrates these open applications to work together on one physical server, providing companies with a PBX phone system and the surrounding applications they need to support their business. trixbox is completely free.

The trixbox community has the largest number of registered users and the most active forums for discussing and resolving open source telephony and Asterisk-specific issues. trixbox will remain an open source project licensed under the general public license (GPL), which encourages innovative software development both within the Asterisk environment and the larger open source community.

"trixbox is a thriving Asterisk community, unencumbered by licensing complexities. It was free, it is free and we are going to make sure it stays free." said Chris Lyman, Fonality's CEO and founder.

For more information on trixbox, visit http://www.trixbox.org

About trixbox
trixbox, formerly Asterisk@Home, is the world's largest Asterisk based community and open source voice over IP telephony platform. The value of trixbox is that, in under an hour, a non-technical user can download and install, not only Asterisk, but Linux, SugarCRM, MySQL, FreePBX and other applications. trixbox tightly integrates these open applications to work together on one physical server, providing companies with a PBX phone system and the surrounding applications they need to support their business. The trixbox community has the largest number of registered users and the most active forums for discussing and resolving open source telephony and Asterisk-specific issues.

About Fonality
Fonality, www.fonality.com, is a leader in open source, Asterisk based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium businesses, is the world's largest commercial Asterisk based deployment. PBXtra uses Fonality's patent pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 percent to 80 percent less than traditional offerings, and is deployed to more than 18,000 business users in the U.S. and other countries. trixbox, www.trixbox.org, the world's largest Asterisk community with an average of 1,500 downloads a day, provides a free, easy to install Asterisk based VOIP phone system.

Fonality is a registered trademark and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium.

Fonality advises businesses that, to support the increased demands of VoIP, many will need to upgrade their corporate network and broadband service configurations or be disappointed with the results.

"VoIP can be great, but if it is deployed incorrectly it will totally screw up a company's revenue and reputation," said Chris Lyman, Fonality's founder and CEO. "At Fonality, we've found that it is critical to educate buyers on what they need to know before taking the VoIP plunge."

Fonality's sales organization has extensive experience advising customers on how to prepare their local area networks (LANs) and wide area networks (WANs) for a successful VoIP deployment, sometimes even advising companies that they do not have the proper network infrastructure to consider VoIP at all. Fonality's support organization works closely with each customer to help them get their network in shape for VoIP.

"Face it, the plain old telephone system most companies depend on today is much more reliable than pure VoIP," Lyman continued. "Companies who want the benefits of VoIP without compromising quality should look for hybrid IP-PBX systems like Fonality's PBXtra. Hybrid systems let businesses safely transition to VoIP over time without having to replace their telephony hardware investments."

There are four different network upgrade options that Fonality typically advises companies to consider when migrating to VoIP. These vary in scope and scale and can be tailored to meet a company's budget, call volume, reliability and quality requirements. These four approaches, along with expert recommendations, have been documented in a recently released white paper written by Lyman titled, "VoIP Without Hype; What Businesses Need to Know." To get a copy of this white paper, visit www.fonality.com/voip

About Fonality
Fonality, www.fonality.com, is the leading provider of affordable IP-PBX systems for SMBs. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides businesses with call center functionality in addition to the PBX capabilities found in Standard Edition. PBXtra is deployed to more than 15,000 business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 2,000 resellers.

In addition to ease of use and low cost, the publication stated that "PBXtra comes with all the ACD [automatic call distribution], auto-attendant and conferencing features we could ever ask for." Other features that the reviewer's highlighted included simple tree-based navigation and administration, unique mouse-over help that can be turned on or off for user convenience, automatic trouble ticket generation when problems are discovered, compatibility with SIP-based phones that are shipped to the user ready to plug in and the product's ability to simplify Asterisk(r).

"We are thrilled that Network Computing has acknowledged PBXtra as the best all-around IP-PBX for the small and medium business market," said Chris Lyman, Fonality's founder and CEO. "Businesses with less than 300 employees have been getting taken to the cleaners for years. We are proud to offer them an alternative - a phone system that has the features they need at a price they can afford."

To view Network Computing's IP-PBX review, including an interactive report card, visit: fonality.com/networkcomputing.

PBXtra is available direct from Fonality or through a Fonality reseller. Pricing starts at $995 for the PBXtra Standard Edition server with unlimited licenses, or $2,935 with ten phones. PBXtra's Call Center Edition, which allows for distributed call centers, is $1,995. For more information about PBXtra or becoming a Fonality reseller, visit www.fonality.com.

About Fonality
Fonality is the leading provider of affordable IP-PBX systems for SMBs. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides businesses with call center functionality in addition to the PBX capabilities found in Standard Edition. PBXtra is deployed to more than 15,000 business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 2,000 resellers.

Fonality, which has led the Asterisk market for two years, has continued to accelerate its lead through significant sales growth this year and is now averaging more than one million calls per week across its PBXtra platform.

"It is important to distinguish between free Asterisk downloads and the 1,000 companies that have actually purchased PBXtra to run their business," said Chris Lyman, Fonality's founder and CEO. "There is no secret why Fonality is leading the Asterisk market: we've extended Asterisk far beyond its base feature set, added tons of stability code and provide our customers with 24-hour support."

PBXtra is less expensive and easier to deploy than all other major PBX offerings on the market today. The price advantage comes from open source technology and the deployment ease comes from an intuitive, web-based interface designed for the average business owner. PBXtra combines simplicity of installation with depth of features, providing SMBs with an enterprise-class PBX for 40 percent to 80 percent less than competitive offerings.

"Asterisk is an open-source project and PBXtra is a commercial product," Lyman continued. "At Fonality, we spend every day figuring out how to extend Asterisk into a reliable, supportable and feature-rich PBX for businesses."

Fonality's PBXtra product line includes enterprise-class features such as telecommuting, branch office support, voicemail-to-email, click-to-call, VoIP, softphones, support for IP and analog phones, call recording, conferencing and advanced call center functionality. In addition to PBXtra Standard Edition and Call Center Edition, Fonality also offers PBXtra customers HUDpro (Heads-up Display Professional), its real-time call control and presence management application.

PBXtra is available direct from Fonality or through a Fonality reseller. Pricing starts at $995 for the PBXtra Standard Edition server with unlimited licenses, or $2,935 with ten phones. PBXtra's Call Center Edition, which allows for distributed call centers, is $1,995. HUDpro is $995 for an unlimited seat licenses with support for Windows, Mac and Linux desktops. For more information about PBXtra, HUD or becoming a Fonality reseller, visit www.fonality.com.

About Fonality
Fonality is the leading provider of affordable IP-PBX systems for SMBs. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides businesses with call center functionality in addition to the PBX capabilities found in Standard Edition. PBXtra is deployed to more than 15,000 business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 1,200 resellers.

"Our growth has been staggering - and the reason is simple: business owners are tired of getting ripped off when they buy a new phone system," said Chris Lyman, Fonality's founder and CEO. "With Fonality, they can finally get the features they need for a price that won't put them in the poor house!"

Fonality's PBXtra product line, which began shipping in October of 2004, provides SMBs with enterprise-class phone systems for 40 percent to 80 percent less than the cost of traditional PBX systems. PBXtra includes enterprise-class features such as telecommuting, branch office support, voicemail-to-email, click-to-call, VoIP, softphones, support for IP and analog phones, call recording, conferencing and advanced call center functionality. Fonality has streamlined and simplified the complex tasks of PBX setup, administration and management, making PBXtra the first phone system for SMBs that can be installed and administered remotely using a Web browser, without specialized training.

PBXtra software runs on standard PC hardware, and uses layers of Open Source Linux and Asterisk software to provide the least expensive option for SMBs deploying IP-PBX phone systems. Unlike most alternative Asterisk-based PBX offerings, PBXtra is much more than a simple front-end designed to make it easier for Linux and Asterisk experts to install and manage Asterisk.

PBXtra is available direct from Fonality or through a Fonality reseller. Pricing starts at $995 for the PBXtra Standard Edition server with unlimited licenses, or $2,935 with ten phones. PBXtra's Call Center Edition, which allows for distributed call centers, is $1,995. For more information about PBXtra or becoming a Fonality reseller, visit www.fonality.com.

About Fonality
Fonality is the leading provider of affordable IP-PBX systems for SMBs. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides businesses with call center functionality in addition to the PBX capabilities found in Standard Edition. PBXtra is deployed to more than 10,000 business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 1,200 resellers.

The total cost of The Upperclassman's PBXtra phone system, including all 165 phones, was less than $38,000. Comparable systems from other vendors cost between $80,000 and $100,000 more.

"College students like to talk on the phone and their call volumes are typically three times larger than the same size corporate office environment, which in this case means more than 12,000 calls per month. I knew I needed to be absolutely sure our new phone system could handle high call volumes," said Roger Workman, director of business development, The Upperclassman II. "Fonality saved us more than $100,000 and has provided us with outstanding service and support. For me, the question isn't will we deploy another Fonality system, rather, I can't wait to order another one!"

The Upperclassman's PBXtra system was deployed in less than two months, from initial order to full high-volume deployment. This was achieved with only minor modifications and adjustments to the system. The Bluefield-based facility operates a single voice and data network that combines low-cost voice over Internet protocol (VoIP) calls and high-speed Internet access, eliminating the need for different data and voice networks.

Fonality's PBXtra product line provides SMBs with enterprise-class phone systems for 40 percent to 80 percent less than the cost of traditional PBX systems. PBXtra's enterprise-class features include telecommuting, branch office support, voicemail-to-email, click-to-call, VoIP, softphones, support for IP and analog phones, and advanced call center functionality. Fonality has streamlined and simplified the complex tasks of PBX setup, administration and management to make PBXtra the world's first enterprise-class phone system that can be installed and administered remotely using a Web browser, without specialized training.

PBXtra software runs on standard PC hardware, and uses layers of Open Source Linux and Asterisk software to provide the least expensive option for SMBs deploying IP-PBX phone systems. Unlike most alternative Asterisk-based PBX offerings, PBXtra is much more than a simple front-end designed to make it easier for Linux and Asterisk experts to install and manage Asterisk.

PBXtra is available direct from Fonality or through a Fonality reseller. Pricing starts at $995 for the PBXtra Standard Edition server with unlimited licenses, or $2,935 with ten phones. PBXtra's Call Center Edition, which allows for distributed call centers, is $1,995. For more information about PBXtra or becoming a Fonality reseller, visit www.fonality.com.

About Fonality
Fonality is the leading provider of affordable IP-PBX systems for SMBs. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides businesses with call center functionality in addition to the PBX capabilities found in Standard Edition. PBXtra is deployed to 10,000 business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 1,700 resellers.

"Free HUDlite helps bring Asterisk to the masses, making it much easier to use and even more powerful," said Chris Lyman, Fonality's founder and CEO. "Fonality has benefited so much from the Asterisk movement. We are excited to finally give back."

Through an intuitive desktop interface that runs on XP, Mac or Linux desktops, users of HUDlite can see when other employees are on calls, to whom they are talking and whether calls are internal, external or in a queue-even if the employees are not in the office.

HUD was announced in March at the VON Conference. In that news release, Mark Spencer, president of Digium and creator of Asterisk, made the following comment about HUD: "Fonality's new HUD application provides Asterisk users with an innovative and extremely productive way to improve their operations with call presence awareness and call management."

The easy-to-use features of HUDlite include:

Drag-and-Drop Calling - call external numbers, internal extensions and numbers listed on websites and in documents by dragging and dropping numbers on HUDlite

Real-Time Call Controls - use a mouse to quickly transfer calls to employees and to voicemail, place calls in a general parking area, even put calls on hold and tag them with notes

Call Monitor/Barge - barge or passively monitor inbound and outbound calls and better manage high call volumes, such as those in call centers

On-the-Fly Recording - allow employees and their managers to record calls with the press of a button - another required feature for call centers and for specific markets including legal and medical

HUDpro, the commercial version of HUD, is also available from Fonality and provides additional features, including advanced multi-hierarchical permission systems, enterprise-class secure instant messaging, mobile phone contact, Outlook integration, CRM integration with screen pops, and comes pre-installed and configured by Fonality's support team.

Pricing and Availability
HUDlite, for the Asterisk Open Source PBX platform, is available for free for immediate download at www.hudlite.org. It supports Windows XP, Macintosh and Linux desktop operating systems.

HUDpro, for Fonality's award-winning PBXtra, is $995 for an unlimited seat license that includes full support and configuration. It is available now for Windows XP and Mac desktops and will be available this summer for Linux. For more information on HUDpro or PBXtra, visit www.fonality.com.

About Asterisk
Code for Asterisk, originally written by Mark Spencer of Digium Inc., has been contributed to from open source software engineers around the world. It supports a wide range of TDM protocols for the handling and transmission of voice over traditional telephony interfaces, and VoIP packet protocols such as IAX, SIP and H.323. It supports U.S. and European standard signaling types used in business phone systems, allowing it to bridge between next-generation voice-data integrated networks and existing infrastructure.

About Fonality
Fonality is the leading provider of affordable IP-PBX systems for SMBs. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price and is so easy to use that it eliminates expensive on-site support and configuration costs. PBXtra Call Center Edition provides businesses with call center functionality, in addition to the PBX capabilities found in Standard Edition. PBXtra is deployed to more than 10,000 business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 1,300 resellers.

Internet Telephony's product review of Fonality's PBXtra summarizes: "We already know the power of the open source movement and the popularity and cultish status that Asterisk has been building in the tech community. Fonality builds on the popularity of Asterisk by performing a complete and total re-write of the front end to be aimed at the SMB (non-tech-savvy) business market. Fonality leverages the power and flexibility of the Asterisk platform, while simultaneously making it easy to manage and use. TMC Labs was very impressed with the Fonality IP PBX and would not hesitate to recommend it for anyone looking for a turnkey Asterisk solution with powerful Web administration tools." Among the enterprise-class features of PBXtra that the reviewers highlighted were its ease of use and Web-based configuration, sophisticated best route calling system, branch-office and telecommuter support, PBXtra Softphone, Outlook integration, real-time call queues, excellent voice mail, customer support and reporting.

Easy to use Web-based Administration
"The user interface for Fonality is what sets it apart from your typical Asterisk solution," the reviewers wrote. "Fonality's Web-based administration and user interface is very organized and has a very clean look. Navigating the user interface and making configuration changes was so easy, yet so powerful, it made us wonder why we ever thought editing the Asterisk text-based configuration file was cool. Similarly, adding or editing voice prompts from the Web interface was equally easy."

Sophisticated Best Route Calling
PBXtra's ability to ensure the best quality and cost savings for every call also drew praise from the editors. "One thing we noticed right off the bat," they wrote, "is that Fonality has some solid features, including a sophisticated dialing plan with pattern matching that blends analog, T1, and VoIP to determine the best route."

Branch Office, Telecommuter Support, Outlook Integration
The product test lauded PBXtra's branch office and telecommuter support, and its integration with Outlook: "We should also mention you can `link up' with other PBXtra boxes in other branch locations for a seamless 4-digit dialing plan. They also offer a feature rich softphone and chat client priced at $49, which includes a bundled Plantronics headset. PBXtra Softphone is excellent for telecommuters, remote call center agents, and such and, of course, it is able to perform free VoIP-based 4-digit dialing to any PBXtra extension. Finally, PBXtra has integration with Microsoft Outlook. Incoming calls pop to the screen based on your Outlook Contacts. You can even call people by clicking on their email in your Inbox."

Easy to Use Scheduler and Real-Time Call Queues
"PBXtra features an easy to use scheduler that lets you build a schedule for a different Call Menu during weekends, or have your sales calls go to a mobile phone after hours," the review states. "Another great feature is the Queues, which give you a real-time snapshot of your queues and agents."

Excellent, Flexible Voicemail
The editors also liked the voicemail, writing, "PBXtra's voicemail capabilities are excellent, offering you four ways to check your voicemail: via .wav attachments sent to your email, via your desk phone, from a remote phone, or via the Web interface."

Customizable Reporting
"PBXtra has very good reporting functionality," the editors said, "including the ability to create custom call reports, export to .csv, and even view the cost of each call if you are using Fonality's VoIP network."

Customer Support
Superior customer service for the Open Source PBXtra was also highlighted in the product test. "Fonality has 10 hour per day customer service, and 24 hour per day emergency support available to its customers. This gives people the comfort of knowing that low cost Open Source can also come with parental supervision."

PBXtra is available from Fonality or through a Fonality reseller. Pricing starts at $995 for the PBXtra Standard Edition server with unlimited licenses, or $2,935 with ten phones. PBXtra's Call Center Edition, which allows for distributed call centers, is $1,995. For more information about PBXtra or becoming a Fonality reseller, visit www.fonality.com.

About Fonality
Fonality is the leading provider of affordable IP-PBX systems for SMBs. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price and is so easy to use that it eliminates expensive on-site support and configuration costs. PBXtra Call Center Edition provides businesses with call center functionality in addition to the PBX capabilities found in Standard Edition. PBXtra is deployed to more than 10,000 business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 1,300 resellers.

"Open Source is really helping us attack an overpriced telephony market with innovative products at the right price," said Chris Lyman, Fonality's founder and CEO. "Our growth over the past 18 months demonstrates how hungry SMB owners are for powerful, yet affordable, business phone solutions."

Unlike most alternative Asterisk-based PBX offerings, PBXtra is more than a simple front-end designed to make it easier for Linux and Asterisk experts to install and manage Asterisk. Fonality has written more than 250,000 lines of code that dramatically streamline the complex tasks of PBX deployment and management. As a result, PBXtra is the world's first true PBX that can be installed and administered remotely using a Web browser, without any specialized training.

PBXtra's enterprise-class features include telecommuting, branch office support, voicemail-to-email, click-to-call, VoIP, softphones, support for IP and analog phones, call recording, distributed call center queuing and more. Businesses deploying PBXtra pay 40 to 80 percent less than they would for a traditional PBX purchase because the software runs on standard PC hardware and uses layers of Open Source Linux and Asterisk software.

PBXtra is available from Fonality or through a Fonality reseller. Pricing starts at $995 for the PBXtra Standard Edition server with unlimited licenses, or $2,935 with ten phones. PBXtra's Call Center Edition, which allows for distributed call centers, is $1,995. For more information about PBXtra or becoming a Fonality reseller, visit www.fonality.com.

About Fonality
Fonality is the leading provider of affordable IP-PBX systems for SMBs. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price and is so easy to use that it eliminates expensive on-site support and configuration costs. PBXtra Call Center Edition provides businesses with call center functionality in addition to the PBX capabilities found in Standard Edition. PBXtra is deployed to more than 10,000 business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 1,200 resellers.

"Fonality differentiates its approach to the small business IP-PBX arena by offering powerful PBX features and an intuitive client interface at a remarkably affordable price," said Chris Gatch, CTO of Cbeyond. "Cbeyond is pleased to enhance the deployment of Fonality IP-PBXs with our BeyondVoice with SIPconnect integrated bundles. By combining Fonality and Cbeyond, small and medium businesses can enjoy the same IP-PBX and VoIP capabilities typically available only to larger enterprises."

Compatibility with Cbeyond's SIPconnect service is another enhancement to Fonality's PBXtra product line, which provides small businesses with enterprise-class phone systems for 40 percent to 80 percent less than the cost of traditional PBX systems. PBXtra's features include telecommuting, branch office support, voicemail-to-email, click-to-call, VoIP, softphones, support for IP and analog phones and advanced call center functionality. PBXtra is the first and only enterprise-class phone system that can be installed and administered remotely using a Web browser, which streamlines many of the complex tasks of PBX setup, administration and management.

"With this combination of Fonality and Cbeyond, the days of poor VoIP call quality for SMBs are over," said Chris Lyman, Fonality's founder and CEO. "PBXtra customers using Cbeyond's SIPconnect achieve compounded cost savings and get great sounding end-to-end digital calls."

For more information about Fonality and PBXtra, visit www.fonality.com.

About Cbeyond
About Cbeyond Cbeyond (NASDAQ:CBEY) is an Atlanta-based managed services provider that delivers integrated packages of voice, mobile and broadband services to small businesses in Atlanta, Chicago, Dallas, Denver, Houston and Los Angeles. Cbeyond offers core communications services like local and long-distance voice, mobile and broadband Internet access along with enhanced applications, including voicemail, email, Web hosting, data backup, file-sharing, VPN and more. Cbeyond manages these services over a private, 100 percent Voice over Internet Protocol (VoIP) facilities-based network. For more information on Cbeyond, visit www.cbeyond.net.

About Fonality
Fonality is the leading provider of affordable IP-PBX systems for small businesses. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides businesses with call center functionality in addition to the PBX capabilities found in Standard Edition. PBXtra is deployed to thousands of business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 1,100 resellers.

"The Digium-Fonality relationship is an important one to us," said Mark Spencer, president of Digium and creator of Asterisk. "Fonality's new HUD application provides Asterisk users with an innovative and extremely productive way to improve their operations with call presence awareness and call management."

Through an intuitive, color-coded desktop interface, HUD™, an acronym for Heads-Up Display, lets employees see when others in the office are on a call, to whom they are talking and whether calls are internal, external or in a queue. HUDlite, available next month, provides drag-and-drop calling and call controls, call monitoring and barging and on-the-fly recording. HUDpro, available immediately, provides additional features, including advanced multi-hierarchical permission systems, enterprise-class secure instant messaging, complete integration with PBXtra and configuration and support from Fonality.

Features in both HUDlite and HUDpro include:

• Drag-and-Drop Calling - call external numbers, internal extensions or numbers listed on websites or in documents, by dragging and dropping numbers on HUD
• Real-Time Call Controls - use the mouse to quickly transfer calls to employees and voicemail, place calls in a general parking area, even put calls on hold and tag them with reminder notes
• Call Monitor/Barge - barge or passively monitor inbound and outbound calls, which helps to more effectively manage call centers
• On-the-Fly Recording - allow employees, or their managers, to record calls with the press of a button -- a required feature for call centers and certain markets such as legal and medical

"We are excited to offer HUDlite to the Asterisk ecosystem in an effort to make their deployments more powerful and user friendly," said Chris Lyman, Fonality's founder and CEO. "HUDpro provides PBXtra customers with a fully supported version that gives them even greater call management and communications capabilities."

HUDpro Delivers Secure Corporate Instant Messaging and More
HUDpro, which integrates with the advanced features of PBXtra, provides businesses and call centers with all the features of HUDlite and the following advanced capabilities:

• Secure Company-Wide Instant Messaging - many corporations consider external instant messaging (IM) applications a security risk and an inefficient use of their employee's time. With HUDpro IM, companies now have a secure and instant method in which employees can message inside the corporate firewall. For call centers, supervisors can monitor an agent handling a customer dispute and seamlessly send instructions to the agent via IM without the customer hearing any chatter, being transferred or put on hold.
• Sophisticated and Easy-to-Use Permissions System - grant rights to specific extensions and not to others, such as the ability to record their own or others' calls, see who is on a call, transfer calls to and from extensions, monitor or barge calls and many more. PBXtra Call Center Edition customers can also easily build groups of extensions and grant specific rights to groups.
• Easy Access to Recorded Calls - HUDpro, when used in conjunction with PBXtra's Web Control Panel, provides employees and admins easy web-based access to recorded calls. Calls may be listened to using computer speakers, or downloaded to a local computer.

Pricing and Availability
HUDlite for the Asterisk Open Source PBX phone system will be available for free in April. It will support Windows XP, Macintosh and Linux desktop operating systems.

HUDpro for PBXtra is available immediately for $995 for an unlimited seat license that includes full support and configuration. It will be available for Windows XP desktops.

For more information, visit Fonality in booth 343 at VON, go to www.fonality.com or email HUD@fonality.com.

About Asterisk
Code for Asterisk, originally written by Mark Spencer of Digium Inc., has been contributed to from open source software engineers around the world. It supports a wide range of TDM protocols for the handling and transmission of voice over traditional telephony interfaces, and VoIP packet protocols such as IAX, SIP and H.323. It supports U.S. and European standard signaling types used in business phone systems, allowing it to bridge between next-generation voice-data integrated networks and existing infrastructure.

About Fonality
Fonality is the leading provider of affordable IP-PBX systems for small businesses. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides businesses with call center functionality in addition to the PBX capabilities found in Standard Edition. PBXtra is deployed to thousands of business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 900 resellers.

Editors selected companies "whose approaches help illuminate where the Web is headed and where the opportunities lie." "The Next Net 25" includes five categories. Fonality was selected as one of five companies within the category titled "The New Phone."

"For nearly a century, the phone, and voice as we know it, has existed largely in the confines of a thin copper wire," the editors wrote. "But now service providers can convert voice calls into tiny Internet packets and let them loose on fast connections, thus mimicking the traditional voice experience without spending hundreds of millions on infrastructure. All you need are powerful--but cheap--computers running specialized software. The Next Net will be the new phone, creating fertile ground for new businesses." The magazine article states that the editors recognized Fonality in "The Next Net 25" because "it sells a $1,000 box that allows a PC to use open-source software to mimic a PBX system that costs five times as much."

"The recognition of Fonality as part of 'The Next Net 25' is a great endorsement of our vision to couple the low-cost dynamics of Open Source software and standardized PC hardware into a price-disruptive solution for small business customers who have been overcharged by proprietary PBX companies for far too long," said Chris Lyman, founder and CEO of Fonality. "With over 10 million calls placed on over 10,000 lines around the world, our customers are validating Business 2.0's vision for 'The New Phone' everyday."

Fonality's PBXtra product line provides today's small businesses with an enterprise-class phone system for 40 percent to 80 percent less than the cost of traditional PBX systems. PBXtra's enterprise-class features include telecommuting, branch office support, voicemail-to-email, click-to-call, VoIP, softphones, support for IP and analog phones, and advanced call center functionality. Fonality has streamlined and simplified the complex tasks of PBX setup, administration and management to make PBXtra the world's first enterprise-class phone system that can be installed and administered remotely using a Web browser, without specialized training.

In describing the Next Net, the editors wrote: "The Next Net will encompass all digital devices, from PC to cell phone to television. Its defining characteristics include the ability to interact instantaneously with any of the more than 1 billion Web users across the globe -- not by, say, instant messaging, but by evolving instant-voice-messaging and instant-video-messaging apps that will make today's e-mail and IM seem crude."

The Next Net article is in the March issue of Business 2.0 and was written by Erick Schonfeld, Om Malik and Michael V. Copeland. The article is available at CNN.com.

For more information about Fonality and PBXtra, visit www.fonality.com.

About Fonality
Fonality is the leading provider of affordable IP-PBX systems for small businesses. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price, and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides businesses with call center functionality in addition to the PBX capabilities found in Standard Edition. PBXtra is deployed to thousands of business users in the U.S. and other countries. Fonality's products are available direct and through a global network of more than 1000 resellers.

"Bob is a telecom star and a great addition to Fonality's management team," said Chris Lyman, Fonality's founder and CEO. "We exist in hybrid waters between public and packet switching protocols. Bob is here to help build bridges."

Nugent brings extensive telecom industry experience, deep knowledge of the interconnect and CLEC markets, and more than 20 years experience building sales teams and new channels for voice and data communications companies. As senior vice president of sales, marketing and customer support at Centigram Communications, Nugent successfully led the turnaround of this voice messaging company, growing it in six years from $8 million to $100 million in sales and an IPO. He served as director of sales and marketing from 1976 to 1984 at ROLM Corporation, where he successfully recruited new channels that led to growth from $8 million to $1 billion in revenues. Nugent has consulted with top telecommunications companies, such as AT&T, Pacific Bell and Executone, to improve sales planning, channel analysis, channel recruiting and distribution. He has also consulted with emerging voice and data communications companies as acting vice president of sales and to recruit sales and marketing teams; provide sales, marketing and product launch strategies; and negotiate partner agreements with CLECs and other large partners.

"Open source, server-based technologies are driving one of the greatest telephony market transformations ever," Nugent said. "Fonality has all of the required components - people, strategy, technology and price - to be a huge success in this emerging market."

Fonality's PBXtra product line provides today's small businesses with an enterprise-class phone system for 40 percent to 80 percent less than the cost of traditional PBX systems. PBXtra's enterprise-class features include telecommuting, branch office support, voicemail-to-email, click-to-call, VoIP, softphones, support for IP and analog phones, and advanced call center functionality. Fonality has streamlined and simplified the complex tasks of PBX setup, administration and management to make PBXtra the world's first enterprise-class phone system that can be installed and administered remotely using a Web browser, without specialized training. The PBXtra software runs on standard PC hardware, and uses layers of Open Source Linux and Asterisk software to provide the least expensive option for small businesses deploying new IP-PBX phone systems.

PBXtra is available from Fonality or through a Fonality reseller. For more information about PBXtra or becoming a Fonality reseller, visit www.fonality.com.

About Fonality
Fonality is the leading provider of affordable IP-PBX systems for small businesses. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price, and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides businesses with call center functionality in addition to the PBX capabilities found in Standard Edition. PBXtra is deployed to thousands of business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 900 resellers.

"Fonality is the leader in the Asterisk-based PBX market," said Chris Lyman, Fonality's founder and CEO. "The reason is simple -- PBXtra provides small businesses the phone system they always wished they could afford and the ability to use it without going to phone school. If you can use Hotmail, you can use PBXtra."

Fonality's PBXtra product line provides today's small businesses with an enterprise-class phone system for 40 percent to 80 percent less than the cost of traditional PBX systems. Unlike most alternative Asterisk-based PBX offerings, PBXtra is more than a simple front-end designed to make it easier for Linux and Asterisk experts to install and manage Asterisk. PBXtra is a complete PBX application for small business customers who want a phone system with enterprise-class capabilities.

"Fonality has addressed a market-need by providing small businesses with an Asterisk-based solution that does not require a significant amount of technical knowledge," said Mark Spencer, president of Digium and creator of Asterisk. "The company's success in the SMB space validates the burgeoning open telephony market."

PBXtra's enterprise-class features include telecommuting, branch office support, voicemail-to-email, click-to-call, VoIP, softphones, support for IP and analog phones, and advanced call center functionality. Fonality has streamlined and simplified the complex tasks of PBX setup, administration and management to make PBXtra the world's first enterprise-class phone system that can be installed and administered remotely using a Web browser, without specialized training. The PBXtra software runs on standard PC hardware, Digium hardware cards, and uses layers of Open Source Linux and Asterisk software to provide the least expensive option for small businesses deploying new IP-PBX phone systems.

PBXtra is available from Fonality or through a Fonality reseller. Pricing starts at $995 for the PBXtra Standard Edition server with unlimited licenses, or $2,935 with ten phones. PBXtra's Call Center Edition, which allows for distributed call centers, is $1,995. For more information about PBXtra or becoming a Fonality reseller, visit www.fonality.com.

About Fonality Fonality is the leading provider of affordable IP-PBX systems for small businesses. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price, and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides businesses with call center functionality in addition to the PBX capabilities found in Standard Edition. PBXtra is deployed to thousands of business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 800 resellers.

"Fonality has cracked the code on leveraging Open Source technology into the walled gardens of the telephony market," said Augustin. "Their team had a vision to create small business telephony solutions with a feature-to-dollar ratio that is going to be hard to beat. PBXtra's success to date proves that Fonality is well on its way to market leadership."

Larry Augustin is the founder of VA Linux (now VA Software), where he served as CEO and led the company to a position of industry leadership. Worth Magazine named him one of the Top 50 CEOs in 2000. At VA Linux, he created SourceForge.net, the world's largest Open Source software development community with over half a million users, and its commercial version, SourceForge Enterprise Edition, used to manage software development in large enterprises. Also at VA, he acquired Andover.net, merging SourceForge.net, Linux.com, Slashdot, and other well-known Open Source Internet sites to form the Open Source Development Network (OSDN). Augustin currently serves on the boards of directors of VA Software Corporation (as Chairman), Open Source Development Lab (OSDL), JBoss, SugarCRM, Medsphere and Pentaho. He holds Ph.D. and M.S. degrees in electrical engineering from Stanford University, and a B.S. in electrical engineering from the University of Notre Dame.

"I am thrilled to have Larry join our board," said Chris Lyman, Fonality's founder and CEO. "His expertise in growing successful Open Source companies and knowledge of the dynamics involved in creating a profitable company based on Open Source technology will be invaluable to me and my team."

Fonality's PBXtra product line provides today's businesses with an enterprise-class phone system for 40-80 less than the cost of traditional solutions. PBXtra provides enterprise-class features such as telecommuting, branch office support, voicemail-to-email, click-to-call, VoIP, softphones, support for IP and analog phones, and advanced call center functionality. The PBXtra software runs on standard PC hardware and uses layers of Open Source Linux and Asterisk technology to provide the least expensive option for small businesses deploying new IP-PBX phone systems.

PBXtra is available from Fonality or through a Fonality reseller. Pricing starts at $995 for the PBXtra Standard Edition server with unlimited licenses, or $2,935 with ten phones. PBXtra's Call Center Edition, which allows for distributed call centers, is $1,995. For more information about PBXtra or becoming a Fonality reseller, visit www.fonality.com.

About Fonality
Fonality is the leading provider of affordable IP-PBX systems for small businesses. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price, and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides businesses with call center functionality in addition to the PBX capabilities found in Standard Edition. PBXtra has placed millions of calls and is deployed to thousands of business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 800 resellers.

"Fonality is attacking a global, multi-billion dollar market with innovative technology, disruptive pricing and a unique channel approach, which makes it a great investment opportunity," said Weinstein. "The company is being led by a team that has proven they can build successful mission-critical technology companies, execute aggressive growth plans and recruit top talent."

Since its availability in October 2004, Fonality's PBXtra IP-PBX has placed millions of calls and has been deployed by hundreds of businesses with thousands of lines. More than 700 resellers in 68 countries are offering PBXtra to their small business customers that are looking for an enterprise-class phone system at an affordable price.

"We are pleased to have Azure Capital lead our Series B round and accelerate our already significant growth," said Chris Lyman, Fonality's founder and CEO. "These funds will allow us to widen our distribution channels, so that our affordable PBX product line will be available to a larger number of small businesses."

Fonality's PBXtra product line provides today's businesses with an enterprise-class phone system for 40-80 percent less than the cost of traditional PBX systems. PBXtra's enterprise-class features include telecommuting, branch office support, voicemail-to-email, click-to-call, VoIP, softphones, support for IP and analog phones, and advanced call center functionality. Fonality has streamlined and simplified the complex tasks of PBX setup, administration and management, to make PBXtra the world's first enterprise-class phone system that can be installed and administered remotely using a Web-browser, without specialized training. The PBXtra software runs on standard PC hardware and uses layers of open-source Linux and Asterisk software to provide the least expensive option for small businesses deploying new IP-PBX phone systems.

PBXtra is available from Fonality or through a Fonality reseller. Pricing starts at $995 for the PBXtra Standard Edition server with unlimited licenses, or $2,935 with ten phones. PBXtra's Call Center Edition, which allows for distributed call centers, is $1,995. For more information about PBXtra or becoming a Fonality reseller, visit www.fonality.com.

About Azure Capital Partners
Azure Capital Partners is a venture capital firm with over $500 million under management, headquartered in San Francisco, California. Our goal is to identify, invest in and help build earlier stage information technology companies that are at the forefront of a transformative opportunity for growth. Our partners have a long track record of identifying and helping to build some of the most successful companies in communications, software and related technology segments. The Azure team is recognized for industry thought leadership and a unique professional investment approach to venture investing. Our proven methodology and primary research enable us to identify young companies in attractive markets whose business models provide sustainable competitive advantage.

About Fonality
Fonality is the leading provider of affordable IP-PBX systems for small businesses. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price, and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides businesses with call center functionality in addition to the PBX capabilities found in Standard Edition. PBXtra is deployed to thousands of business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 700 resellers.

"We are thrilled that INTERNET TELEPHONY has recognized PBXtra as a leader in the Open Source telephony movement." said Chris Lyman, Fonality's founder and CEO. "This award, combined with our staggering growth in 2005, proves that there is a huge unmet need for powerful small business phone systems. We plan to continue aggressively meeting that need in 2006."

PBXtra is an IP-PBX that delivers enterprise-class capabilities to small businesses for only $995, including the server. Providing the least expensive option available, PBXtra often saves companies up to 80 percent of what they are used to paying for PBX functionality. PBXtra combines the features that companies expect from an enterprise-class PBX system, such as powerful call handling, telecommuting, branch-office support, VoIP/PSTN capacity, and unified messaging. It also includes new features not found in any PBX solution at such an affordable price including: click and call from your PC, 4-digit dialing, Microsoft Outlook integration, CRM and web browser integration, MP3-based music on hold, unlimited extensions, unlimited voicemail, hybrid of VoIP and PSTN, support for IP and analog phones, and automatic desktop notification of callers. PBXtra is configurable from anywhere on the web, easy to set up and administer, and allows mobile workers to use remote phones and softphones on the road as easily as if they were in the office.

"Each year INTERNET TELEPHONY magazine bestows its Product of the Year awards on companies that have demonstrated excellence in technological advancement and application refinements. Fonality has demonstrated to the editors of INTERNET TELEPHONY that its products or services are committed to quality and innovation while addressing the real needs in the marketplace," said Rich Tehrani, group publisher and editor-in-chief of INTERNET TELEPHONY.

The Product of the Year Award winners for 2005 will be highlighted in the January and February 2006 issues of INTERNET TELEPHONY magazine.

About Fonality
Fonality is the leading provider of affordable IP PBX systems for small businesses. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price, and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides call center functionality in addition to the PBX functionality found in Standard Edition. PBXtra is deployed to thousands of business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 700 resellers.

About TMC
Celebrating more than 30 years as a leading publisher, Technology Marketing Corporation (TMC) publishes Customer Inter@ction Solutions and INTERNET TELEPHONY magazines, Web portal TMCnet.com, and the online publications SIPP Speech-World, VoIP Developer, WiFI Telephony, WiMAX, Alternative Power and BiometriTech. TMC is also the first publisher to test new products in its own on-site laboratories, TMC Labs. TMC produces INTERNET TELEPHONY Conference & EXPO, VoIP Developer Conference and Global Call Center Outsourcing Summit. TMC offers live and online certification programs through TMC University. TMCnet.com publishes more than 14 online newsletters. Visit www.tmcnet.com for details.

"We've been using PBXtra at our headquarters and in our call center for over a year and have realized huge productivity gains and cost savings," said Carlos Alvarez, IT director for WestGroup Research based in Phoenix. "PBXtra Softphone will provide an even stronger ROI."

PBXtra's suite of mobility features allows small businesses to easily connect their headquarters with disparate branch and home offices. This allows local workers, telecommuters and mobile workers to all seamlessly communicate via free 4-digit dialing on the same phone system. Remote users enjoy features such as least-cost routing, unified messaging, caller ID and teleconferencing as if they are in the office. Call forwarding and follow-me services allow calls to be redirected to extensions, pagers, cell phones or other remote phone numbers.

PBXtra Softphone allows telecommuters to use their desktops and laptops as regular extensions of the office phone system. Call quality is equal to or better than a traditional phone. When traveling or working remotely, users connect back to the office with free VoIP, saving business owners money. PBXtra Softphone also includes ten-party conferencing and secure enterprise chat. The intuitive interface features a familiar phone keypad, and buttons for actions such as hold and call transfers.

When combined with PBXtra Call Center Edition, PBXtra Softphone provides small businesses with the most cost-effective way to deploy a distributed call center from a field of disparate agents. Prices for PBX Call Center Edition server start at less than $2,000, which includes the server and an unlimited extension license. PBXtra Call Center Edition with PBXtra Softphone delivers huge cost savings compared to traditional call center offerings and increases customer satisfaction by connecting callers to the best contact who can help them buy a product or solve a problem, wherever that contact is, potentially on a 24/7 basis.

"Finally small businesses have a way to connect a distributed workforce without breaking the bank," said Chris Lyman, Fonality's founder and CEO. "Today's small businesses are embracing telecommuters as a cost-saving and productivity-enhancing segment of their workforce. PBXtra, and in particular our PBXtra Softphone, lets them leverage existing IT infrastructure, such as laptops and home routers, to gain enterprise telephony functionality at a ridiculously low price."

PBXtra and PBXtra Softphone are available from Fonality or through a Fonality reseller. PBXtra Softphone costs $49 and includes a Plantronics headset. Pricing starts at $995 for PBXtra Standard Edition server with unlimited licenses, $2,935 with ten phones. For more information about PBXtra Standard and Call Center Editions, PBXtra Softphone or becoming a Fonality reseller, visit www.fonality.com.

About Fonality
Fonality is the leading provider of affordable IP PBX systems for small businesses. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price, and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides call center functionality in addition to the PBX functionality found in Standard Edition. PBXtra is deployed to thousands of business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 700 resellers.

INTERNET TELEPHONY Conference & EXPO, held October 24-27, 2005, is the world's largest and best-attended VoIP trade show. Last February, the show drew over 6,200 buyers and sellers of VoIP products and services to Miami. For this upcoming October show, TMC projects total attendance to exceed 7,500.

"Fonality is honored to be invited to speak on such a broad range of exciting topics at the Internet Telephony Conference and Expo," said Lyman. "We look forward to engaging in important discussions about subjects so important to the growth of the IP telephony industry."

Lyman will speak on three panels: Open Source Round Table, VoIP for SMBs and VoIP Mobility Reality Check.

• Open Source Round Table will be a group discussion focusing on the current and future state of the open-source telephony market.
• VoIP for SMBs will be a panel addressing the drivers of the SMB market, such as the challenges to utilize remote knowledge workers and the increasing pressure to control costs while delivering features that increase productivity and profits.
• VoIP Mobility Reality Check will explore how VoIP is now a viable solution for wireless and WiFi users and how mobile professionals can incorporate VoIP communications wherever they connect.

Adrian Otto will participate in the Managing Your Network for High-Quality Voice panel, which will address the need for service quality management and how enforcing a centralized policy for end-to-end QoS and controlling network resources proactively can deliver high quality IP communications.

"We are very pleased that Chris Lyman and Adrian Otto will be participating in this year's show. Fonality is widely recognized and respected as an industry leader, and I am confident that our attendees will appreciate and value the opportunity to hear their perspectives on open source, VoIP for SMBs, mobile VoIP and managing the network for high-quality voice," said TMC president and conference co-chair, Rich Tehrani.

Fonality's speaking schedule is as follows:

• Open Source Round Table, Monday, October 24, 2-3:45 p.m.
• VoIP for SMBs, Tuesday, October 25, 2-2:45 p.m.
• VoIP Mobility Reality Check, Thursday, October 27, 12:15-1 p.m.
• Managing Your Network for High-Quality Voice, Thursday, October 27, 2:15-3 p.m.

About Fonality
Fonality is the leading provider of affordable IP PBX systems for small businesses. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price, and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides call center functionality in addition to the PBX functionality found in Standard Edition. PBXtra is deployed to thousands of business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 500 resellers.

About TMC
Technology Marketing Corporation (TMC) publishes two print magazines: Customer Inter@ction Solutions, and Internet Telephony; five digital publications, SIP Magazine, Speech-World, WiFI Telephony Magazine, VoIP Developer, WiMAX Magazine; and the online publications TMCnet.com, Planet PDA Magazine, WiFi Revolution, Alternative Power and BiometriTech. TMC is also the first publisher to test new products in its own on-site laboratories, TMC Labs. TMC also produces The VoIP Developer Conference, Speech-World Conference, IP Contact Center Summit and The Global Call Center Outsourcing Summit. TMCnet.com publishes more than 20 topical online newsletters. For more information about TMC, visit its Web site at www.tmcnet.com.

Fonality has installed thousands of lines in hundreds of businesses and has signed more than 500 reseller partners in 45 countries. Since PBXtra began shipping last fall, its customers have placed more than 4 million calls.

"As the VoIP industry's first and foremost award listing, the pulver 100 continues to grow in significance because companies like Fonality continue to advance IP communications with innovative products like PBXtra," said Jeff Pulver, founder and chairman of pulvermedia. "We're proud to name Fonality to this year's pulver 100."

"Being named to the pulver 100 is the best possible recognition of Fonality's growth, innovation and ability to satisfy a huge unmet market need," said Chris Lyman, Fonality's CEO. "Small businesses no longer have to settle for expensive, feature-lean phone systems that are impossible to configure. With PBXtra, they get a feature-rich phone system that is affordable and can be administered from a Web browser with simple clicks of the mouse."

In addition to being named to the pulver 100, Fonality's CEO Chris Lyman will be speaking at Fall 2005 VON on the panel "Developing Products with Open Source - Steal This Code," on Monday, September 19 from 10:45 a.m. to noon. Fall 2005 VON will be held September 19-22 at the Boston Convention Center. Fonality will also be exhibiting at the conference at booth 1026.

PBXtra, an Asterisk-based IP PBX that runs on the Linux platform, is available for $995 for PBXtra Standard Edition server, $2,988 with ten phones. PBXtra Call Center Edition server is $1,995. For more information about PBXtra or becoming a Fonality reseller, visit www.fonality.com or call 877-366-2548.

About the pulver 100
Originally introduced in 2002, the pulver 100 features private companies in the communications sector that have substantial real-world deployments and enjoy significant growth rates. The value chain characterized by pulver 100 differs from the vertically integrated telecom model of the last century, focusing more on a networking-industry model that espouses open interfaces, connectivity decoupled from services and software decoupled from hardware. For additional details on the 2005 pulver 100, please visit www.pulvermedia.com

About Fonality
Fonality is the leading provider of affordable IP PBX systems for small businesses. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price, and is so easy to use that it eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides call center functionality in addition to the PBX functionality found in Standard Edition. PBXtra is deployed to thousands of business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 500 resellers.

"Telephony options for small businesses have been extremely limited, until now," said Chris Lyman, Fonality's founder and CEO. "PBXtra fills the huge market gap between the low-end, key-based phone systems that most small businesses use, which are feature-lean and difficult to configure, and other PBX options, which are outrageously expensive and, quite simply, out of reach for most small businesses."

PBXtra combines the powerful call handling and advanced features companies expect from an enterprise-class PBX system at an affordable price. Configurable from anywhere on the web, PBXtra is easy to set up and administer, and eliminates the need for specialized phone support. PBXtra runs on standard PC hardware and routers and uses layers of open-source Linux and Asterisk technology to provide the least expensive option for small businesses deploying new IP PBX phone systems. Plus, PBXtra includes new features not found in any PBX solution for such an affordable price including: click and call from your PC, 4-digit dialing, easy telecommuting, Microsoft Outlook integration, CRM and web browser integration, MP3-based music on hold, unlimited extensions, unlimited voicemail, hybrid of VoIP and PSTN, support for IP and analog phones, and automatic desktop notification of callers. Companies that require call center functionality, such as agent and queue support, can use PBXtra's Call Center Edition.

"It is about time someone came along to address the lack of options available for small companies who require the same phone system capabilities as larger enterprises," said Daniel Hong, technology analyst at Datamonitor. "Fonality does just that-at an affordable price."

More than 50 percent of all workers in the U.S. are employed by companies with 5-200 employees, according to 2002 US Census Bureau data. PBXtra provides IP PBX solutions for these small businesses, including seamless support for branch offices and telecommuters.

"With Fonality, we saved about 70 percent, which was $12,000, compared to the Avaya PBX system we were looking at," said David Katz, CFO, Durand and Associates, a property management firm located in South Saint Paul, Minn. "Plus, PBXtra is extremely easy to set up and maintain. We just plugged in the phones and the server, and the Fonality support staff took care of the rest. We couldn't be happier with PBXtra."

PBXtra is available from Fonality or through a Fonality reseller. Pricing starts at $995 for the PBXtra Standard Edition server, $2,988 with ten phones. PBXtra's Call Center Edition server is $1,995. For more information about PBXtra or becoming a Fonality reseller, visit www.fonality.com.

About Fonality
Fonality is the leading provider of affordable IP PBX systems for small businesses. PBXtra Standard Edition delivers all the advanced features of an enterprise-class phone system at an affordable price, and eliminates expensive phone support and configuration costs. PBXtra Call Center Edition provides call center functionality in addition to the PBX functionality found in Standard Edition. PBXtra is deployed to thousands of business users in the U.S. and other countries. Fonality's products are available direct and through a network of more than 300 resellers.