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AudioCodes Acquires N.S.C. Natural Speech Communication Ltd.

May 11, 2010

Lod, Israel – May 11, 2010 – AudioCodes (NasdaqGS: AUDC), a leading provider of Voice over IP (VoIP) technologies and Voice Network products, today announced that it had entered into an agreement to acquire all of the outstanding equity of N.S.C. Natural Speech Communication Ltd. (“NSC”) that it does not currently own. NSC is based in Israel and is engaged in speech analytics, speech recognition technologies and products. Over the past several years, AudioCodes had made a series of investments in NSC in an aggregate amount of $8.6 million that had raised its ownership interest prior to the execution of this agreement to 59.7% of the outstanding share capital of NSC (51.5% on a fully diluted basis). As of December 1, 2008, AudioCodes began to consolidate the financial results of NSC into the financial results of AudioCodes.

The closing of the transaction, which is subject to regulatory approvals in Israel, is expected to occur in May 2010. Pursuant to the agreement, AudioCodes will pay an aggregate of approximately $1.2 million for the remaining interest in NSC, payable in three annual installments commencing on the first anniversary of the closing. AudioCodes will also be required to pay an additional purchase price of up to $500,000 in 2013 if certain aggregate revenue milestones are met for 2010, 2011 and 2012.

“The acquisition of NSC underscores AudioCodes’ strategy of strengthening its technology base and offerings for the enterprise and residential telephony markets,” said Shabtai Adlersberg, Chairman, President and Chief Executive Officer of AudioCodes. “Speech analytics and speech recognition increasingly become an integral part of emerging media applications and adding these capabilities will help us to increase our competitive edge in our markets.”

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