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VoIP Service Provider Kayote Networks Closes Q1 2007 with 49% Increase in Revenue

Major deployment of carrier-grade hosted VoIP services with partner INTERNEXA adds to Kayote's momentum

Passaic, NJ - April 30, 2007 - Kayote Networks, Inc., the leading provider of hosted Voice over IP (VoIP) interconnectivity solutions, today announced its first-quarter results, boasting positive growth and continued momentum. Kayote announced a growth in revenue of 49% over the previous quarter, a 56% increase in customer base for its VoIP Traffic Manager (VTM) platform and a 19% jump in overall VoIP call minutes running through its system.

Kayote's VTM 1.5 allows carriers of all sizes, cable operators, Internet Telephony Service Providers and enterprises of all sizes to offer their customers the most advanced VoIP services available and maintain full control of the network, without having to invest in the deployment and maintenance of a costly VoIP network. Kayote closed Q1 with 47 customers using the VTM 1.5, an increase of over 56%, quarter-on-quarter.

Kayote's progress is also demonstrated by the increase in volume of VoIP traffic on its carrier-grade, highly-scalable VoIP network. From Q4 2006 to Q1 2007 there was a 19% jump in VoIP minutes running through Kayote's network.

The increased number of VTM customers strengthens Kayote's global reach. In addition to the company's existing presence in North America and Europe, Kayote gained customers from Bolivia, Columbia, Curacao, Jordan, Latvia, Macedonia, Saudi Arabia, South Africa, Spain and Turkey during the first quarter.

"We feel emboldened by our ongoing successes," said Dr. Baruch Sterman, CEO and founder of Kayote Networks. "Kayote's recent deal with INTERNEXA in Latin America confirms the inherent worth of the hosted model. As more and more consumers demand VoIP services from carriers, we expect that a growing number of companies will turn to us for best-in-class VoIP solutions."

Kayote continues to be recognized as a leader in the VoIP industry. During Q1, the company was listed on Pulver 100, the IP Communications industry's premier listing of privately-held growth companies. Kayote Networks was named to the list, for the second consecutive year, due to its innovative Hosted VoIP solution and the increased adoption of its solution.

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