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Deltathree Secures New Video Phone Service Provider Contract With 5tel Communications Pty Ltd

NEW YORK, May 25, 2010 (GLOBE NEWSWIRE) -- deltathree, Inc. (OTCBB:DDDC), a global provider of integrated video and Voice over Internet Protocol (VoIP) telephony services, products, hosted turnkey solutions and infrastructures for service providers, resellers and direct consumers, today announced it has secured a new service provider contract with 5tel Communications Pty Ltd, an Australian-based Internet telephony company. deltathree will supply the digital phone and video phone service for 5tel's move into the Australian video phone market, which is targeted to go live during the current quarter, as well as a full spectrum of service provider back-end support services, including network management, billing, provisioning, eCommerce and custom web and application development. The launch is driven by the solid opportunities 5tel sees for growth in the video phone market as well as the attraction of an integrated offering with the current 5tel IP phone service.

Douglas Archbold, 5tel's General Manager, stated, "5tel's philosophy is to stay ahead of the communications market with the development and deployment of next generation digital video and phone solutions. Our new 5tel video phone service, supported by deltathree, aims to bring social networks, family and friends closer together. We deliver an immediate video connection, offering a new way to experience interactive communications, allowing family members that may be separated by vast distances, or challenges such as the hearing impaired, to enjoy a face-to-face conversation in real-time, anytime. The 5tel 'plug in and play' Yealink VP2009P Videophone connects to a customer's existing broadband DSL or cable Internet connection and produces excellent, consistent video quality."

Mr. Effi Baruch, interim Chief Executive Officer and President, and Senior Vice President of Operations and Technology of deltathree, commented on the new agreement, "With the current market for video phone services largely under-penetrated on a global basis, and with the widespread availability of quality high speed Internet to global consumers and small businesses, we see a vast potential market to leverage our world-class international VoIP and video-over-IP network. Our turnkey communication services offer our valued service provider clients such as 5tel leading edge technology solutions to help them extend their innovative vision worldwide."

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