EMERYVILLE, CALIFORNIA -- (MARKET WIRE) -- 08/15/06 -- Pandora Networks, a provider of On Demand IP communication services for small to medium-sized business (SMB), announced today that its Smart Partner(TM) channel program has reached its 70th value added reseller (VAR) with the appointment of GHA Associates (www.gha-associates.com) of Phoenix, Arizona.

"GHA Associates is a world-class organization with more than 16 years of experience delivering IT solutions nationwide," says Pandora Networks CEO and founder Walter Snell. "By adding GHA to our family, we expect to continue our Smart Program channel growth by acquiring more than 120 VARs by the end of 2006.

"Our VAR program is Pandora's primary strategy for providing its unique unified communications services to the SMB market. Its attractive long-term recurring revenue sharing plans and unique services offering make it an ideal product for today's SMB-oriented resellers."

"We selected Pandora as our IP communications partner because of its unique value proposition in unifying communications for SMBs," adds GHA CEO and founder George Hertzberg. "No other application in our product line provides the capabilities or the ROI to our medium-size clients. Worksmart is a truly unified communications service that delivers a simpler, more affordable, one-touch solution with hosted PBX, IM, conferencing, collaboration and much more."

"Our latest Smart Partner relationship is a model of excellence that allows Pandora and selected partners like GHA to serve the emerging and growing needs of small- and medium-sized businesses with collaborative IP on Demand services, previously available only with significant CAPEX outlay," says Pandora Networks Chairman Hal Turner. "We expect GHA Associates to be a leader in this market with Pandora's Worksmart hosted service. It's clearly a new day for small businesses."

GHA has more than 150 employees with annual sales reaching $80 million and is a nationally expanding network, computer reseller and systems integrator, listed as the 36th largest private corporation in Arizona. Experiencing rapid expansion, the company is hiring 8 to 10 new sales candidates per month nationwide. GHA also represents Dell, Sun, Microsoft, Cisco, Nortel, and others.

A recent study from Savatar of 300 SMB decision makers reveals that the SMB market is ready to move to IP communications applications. Conversely, small- and medium-size businesses are one of the most difficult markets to address due to the sheer size and diversity of the market with more than three million businesses and 120 million employees. Tier one carriers are consolidating and focusing on larger enterprise applications leaving SMBs unclear where to turn for the best options.

Pandora is currently offering the Worksmart service in the United States, Canada, and the United Kingdom.

About Worksmart

Worksmart was designed to provide the small to medium sized business customer with a complete IP communications service to meet all of their voice, video, messaging and collaboration services for a fraction of what silo customer premise hardware and software solutions. Pandora's On Demand IP Communications(TM) solution has already received technical and customer acclaim. Technology Marketing Corporation's TMC Labs named Worksmart(TM), the first, complete, IP Communications solution designed for small and medium sized businesses (SMB), as a 2005 Product of the Year Award winner and 2005 Internet Telephony Excellence Award from INTERNET TELEPHONY magazine.

About Pandora Networks

Pandora Networks is the leading provider of On-Demand IP Communications for the small or mid-sized business. The Company's solutions integrate voice and IP calling, switchboard and call-distribution services, instant messaging and conferencing, with options for advanced collaboration and call-center support. Service-based On-Demand delivery keeps capital investment low and aligns operating expense to business value. Pandora Networks sells its services exclusively through service providers, distributors and resellers under their private labels, the Company's Worksmart(TM) brand, or co-branded. The Company is privately held with headquarters in Emeryville, California. For more information, please visit http://www.pandoranetworks.com or call (800) 805-0558.

Contacts:
Sacke & Associates Inc.
Sheldon Rose
+1 (416) 493-5723 ext 202
sheldonr@sackepr.com