VocalTec Receives $9.2 Million Netfrom the Sale of 11 of its 22 Patents

[Metropolitanjury]

VocalTec Communications Ltd. a global provider of carrier-class multimedia and voice-over-IP solutions for communication service providers, announced today the closing of the Patent Purchase Agreement (PPA) for the sale of selected patents to Karo Millennium J.P., L.L.C. as previously announced on May 28th, 2008. The transaction was successfully brokered by IPinvestments Group of Atlanta, Georgia.

Pursuant to the agreement, VocalTec sold 11 patents and certain patent-related rights, out of the company’s portfolio of 22 patents. With the consummation of the transaction and the payment of all transaction-related expenses, including payment to the Office of the Chief Scientist of the Israeli Ministry of Industry (OCS), Trade and Labor, VocalTec retained net proceeds amounting to approximately $9.2 Million.

VocalTec is granted a geographically unlimited, non-exclusive license to use the sold patents and other patent-related rights in connection with the development and marketing of its products.

In addition to the 11 patents sold, VocalTec retains a patent portfolio comprising 11 additional patents as well as several trademarks, including “Internet Phone” trademark and Internet domain name.

Yosi Albagli, VocalTec’s President and Chief Executive Officer, commented, “We are happy to have successfully concluded this transaction with Karo Millennium J.P., L.L.C. We believe the proceeds from this transaction will significantly boost our capabilities to continue executing our growth strategy.”

About VocalTec

VocalTec Communications is a global provider of carrier-class multimedia and voice-over-IP solutions for communication service providers. A pioneer in VoIP technology since 1994, VocalTec provides proven trunking, peering and residential/enterprise VoIP application solutions that enable flexible deployment of next-generation networks (NGNs). Partnering with prominent system integrators and equipment manufacturers, VocalTec serves an installed base of dozens of leading carriers including Deutsche Telekom and Telecom Italia San Marino. VocalTec is led by a management team comprised of respected industry veterans.

By Ms.Bobby Aanand, Metropolitan Jury.