NEW YORK, Oct. 16 /PRNewswire-FirstCall/ -- deltathree, Inc. , a leading provider of hosted Voice over Internet Protocol (VoIP) solutions worldwide today announced that its Outsourced Platform Solution Group has teamed up with telSPACE, an innovative Mobile Virtual Network Enabler (MVNE), to provide a multi-service application for service providers that wish to deploy both VoIP and cellular services under a unified platform.

deltathree's strategic relationship with telSPACE will unify VoIP and mobile services to consolidate the purchasing experience for telephony consumers. telSPACE's Mobile Virtual Network Operators (MVNO's) and deltathree's private label service providers will be enabled to provide a VoIP calling package, VoIP telephone number and a branded wireless calling plan including mobile phone, and mobile number all under a consolidated billing platform.

"The ability for an end user to select and manage their home and mobile telephone experience under a unified platform offers an unprecedented value for both end users and service providers alike," stated Gary Coben, deltathree Director of Sales, Outsourced Platform Department. "This deal represents the first step in our plans to offer a comprehensive voice solution that combines the mobility of wireless -- Cellular, Wi-Fi, WiMAX -- with the power of IP. It is our intention to deliver a fully converged solution that offers end users one phone, one invoice, and one phone number."

"We are excited to team up with deltathree, one of the pioneers in the VoIP space. Our combined platform will power the first of many services that can be included in telSPACE's unique enablement platform," stated Paris Holt, CEO telSPACE. "Our dynamic relationship will bring for the first time VoIP services to our MVNOs end users while providing deltathree customers an advanced mobile service."

As VoIP and cellular services continue to evolve and converge they will require a business platform similar to the unified solution offered by both deltathree and telSPACE. By meeting the consumer's need to merge both VoIP telephony services and wireless into a unified platform, the deltathree and telSPACE relationship can be viewed as an innovative new business model. deltathree's Outsourced Platform Solution will enable MVNO's and service providers to introduce comprehensive VoIP/Mobile products and services. deltathree has been recognized as a global innovator of VoIP for over a decade, and this unique relationship with telSPACE will further strengthen its products and solutions offerings.

About telSPACE

Based in Redmond, Washington, telSPACE enables its MVNO clients using its proprietary turnkey back office infrastructure to sell, provision, fulfill, and care for multiple telecom services, including Pre and Post Paid Cellular, Internet, and Long Distance. In development for over 8 years, the company has used feedback from its 27 MVNO clients to refine its product and create a platform that provides core MVNO functionality that rivals any in the industry.

For more information go to http://www.telspace.com/ About deltathree

Founded in 1996, deltathree is a leading provider of integrated Voice over Internet Protocol (VoIP) telephony services, products, hosted solutions, and infrastructure. deltathree offers customers high quality Internet telephony solutions that are viable and cost-effective alternatives to traditional telephone services. Supporting hundreds of thousands of active users around the world, deltathree serves customers through its two primary distribution channels: the Service Provider and Reseller channel and the iConnectHere direct-to-consumer channel. deltathree offers a broad suite of private label VoIP products and services as well as a back-office platform for service providers, resellers, and corporate customers. Based on deltathree's customizable VoIP solutions, these customers can offer private label telecommunications to their own customer bases, under either their own brand name, a white-label brand, and/or the iConnectHere or deltathree brand name. At the same time, iConnectHere, deltathree's direct-to-consumer offering, provides award-winning VoIP products directly to consumers and small businesses online using the same primary platform.

For more information about deltathree, please visit our website: http://www.deltathree.com/

CONTACT: Investor Relations: Erik Knettel of The Global Consulting
Group, +1-646-284-9415, eknettel@hfgcg.com; Media Relations: Lukas Brenowitz
of deltathree, Inc., +1-212-500-4836, Lukas.brenowitz@deltathree.com

Web site: http://www.deltathree.com/
http://www.telspace.com/