2008 is proving to become a year of new products and partnerships for AudioCodes and the VoIP ecosystem we have built.

The AudioCodes Enterprise Business Group introduced our new product, the Mediant™ 1000 Multi-Service Business Gateway (MSBG) - a modular, all-in-one, networking device that combines a Media Gateway, enterprise class Session Border Controller, Data Router & Firewall, LAN Switch, WAN access, Stand Alone Survivability (SAS) and an on-board general purpose server. According to a recent In-Stat report, the Multi-Service Business Gateway market will grow from $1.2 Billion in 2008 to $2.6 Billion in 2011. With the introduction of the Mediant 1000 MSBG, we will now expand our operations beyond the VoIP market to a new business communication market segment, creating new market opportunities, and further strengthening position and market share in the Customer Premises Equipment (CPE) market. The MSBG allows customers to have an all-in-one integrated cost-effective product which will provide them with many functionalities and features.

Additionally we have made an impact with leading vendors in the enterprise market, and have strengthened our partnership with Microsoft. We have also announced our relationship with Avaya and a few more leading enterprise market vendors. Similarly, we are enhancing our partnerships with world-class system integrators that deploy complete network solutions.

Recently, we have observed that a number of players in the low and mid density space are not developing new products and are beginning to exit the market. With the advancement of required features in the field and the need to support new applications along with additional interoperability with different networks, we believe that we are one of the few remaining parties in the market that keeps investing and delivering innovative products. For this reason, we envisage that new opportunities will be created in the near future.

AudioCodes has just celebrated its 15th anniversary. The past 15 years have seen the company evolve to become a major CPE player in the enterprise and service provider arenas. We envisage that one of our major goals is to become a leader in intelligent embedded software and hardware in Business Gateways products, which will match the capabilities required by applications to run on top of broadband and IP networks. We are looking forward to the next 15 years of innovation.