Frost & Sullivan Names Convedia Global Leader
with 62% Market Share

Convedia secures commanding lead in IP Media Server market
with over three times more market share than its next closest competitor

VANCOUVER, BC – December 15, 2004

Convedia Corporation today announced that its leadership position in IP Media Servers has been validated by market research firm Frost & Sullivan. In a report released earlier this month entitled “2004 World VoIP Equipment Update”, Convedia is named the leading media server provider in North America, Europe, and Asia. The report, which provides a strategic assessment of the world Voice over IP equipment market, has been published annually since 1999, and was enhanced in 2004 to provide in-depth analysis of media servers and application servers in recognition of the rapidly growing importance of VOIP enhanced services in fixed and mobile networks.

“Our research found that Convedia has emerged as the dominant media server vendor over the past 6 quarters. This is the result of having a broad product portfolio, as well as strong channel partnerships and a singular focus on delivering market leading media server products”, said Jon Arnold, Program Leader of VoIP Equipment for Frost & Sullivan. “Convedia is well positioned for continued success as IMS platforms and multimedia services become even more critical to service providers around the globe.”

Convedia’s media server technology is deployed today in more than 20 countries and is operational in more than 50 in-service networks including many of the largest VOIP networks in North America, Europe, and Asia. The company’s multi-service platforms provide the foundation for a broad range of traditional network-based services including voice conferencing, prepaid calling card, voicemail, call center and IP Centrex as well as new and exciting services such as personalized ringback tones, multiplayer online gaming, and multimedia conferencing and messaging.

"The Frost and Sullivan report underscores Convedia’s position as the clear vendor of choice for IP media processing solutions among leading carriers and service providers worldwide," said Peter Briscoe, President and CEO of Convedia. "Our market share is a testament to the steadfast dedication of the Convedia team to deliver the highest levels of technical innovation, product quality, and customer service in the packet voice industry."

Convedia’s award-winning family of carrier-class IP Media Servers reduce capital and ongoing operational costs by consolidating the functions of traditional announcement and recording servers, interactive voice response units (IVR/VRU), audio/video conference bridges, voice mail servers, and speech platforms onto a single shared media processing platform. Convedia works closely with leading network equipment providers, application developers, and system integrators to deliver some of the industry’s most innovative and cost-effective network and enhanced service solutions for service provider and large enterprise customers.

About Frost & Sullivan
Frost & Sullivan, a global growth consulting company founded in 1961, partners with clients to create value through innovative growth strategies. The foundation of this partnership approach is our Growth Partnership Services platform, whereby we provide industry research, marketing strategies, consulting and training to our clients to help grow their business. A key benefit that Frost & Sullivan brings to its clients is a global perspective on a broad range of industries, markets, technologies, econometrics, and demographics. With a client list that includes Global 1000 companies, emerging companies, as well as the investment community, Frost & Sullivan has evolved into one of the premier growth consulting companies in the world. For more information, please visit www.frost.com.

About Convedia
Convedia® Corporation is the leading supplier of next-generation IP media servers that enable telecommunication service providers to reduce service delivery costs and increase revenues through new approaches to enhanced services. Convedia’s award-winning family of products includes the CMS-6000 Media Server, a carrier-class media server capable of scaling to 18,000 ports per shelf, and the CMS-1000 Media Server, a low-cost, entry-level media server. Convedia is a privately held company headquartered in Vancouver, Canada, with regional offices in Asia and the United States. For additional information about Convedia, its products, or the role of media servers in Softswitch, Packet Cable, or 2.5 and 3G wireless architectures, visit www.convedia.com.


For more information, contact:

Abelson Group for Convedia
Jennifer Kronstain
+1-201-766-3025
jkronstain@abelsongroup.com