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."

About 5tel Communications Pty Ltd

5tel Communications Pty Ltd is a leading Australian internet telephony company, with a presence in Melbourne, Sydney, Canberra, Adelaide and the Gold Coast.  The company operates in five distinct divisions, including IP Pbx; video voice and video phone; IP smart mobile; international sim; and One World roaming sim (which reaches over 200 countries worldwide, with free incoming calls in over 80 countries) and serves as one of Australia's largest IP payphone systems offering consumers a reduction of up to 98% in call costs while providing media streaming.  The company began operations as OzVOIP in 2004, specializing in the sale and installation of business phone systems using internet telephony technology (IP PABX's and payphones), and was the first to launch coin-operated internet telephony payphones.   For more information about 5tel please visit:   www.5tel.com.au

About deltathree

Founded in 1996, deltathree, Inc. is 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. Supporting tens 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 direct-to-consumer channel. deltathree's advanced solutions offer service providers and resellers a full spectrum of private label IP-based digital voice and video products and services, as well as a back-office suite of services. Utilizing advanced Session Initiation Protocol (SIP) technology, deltathree provides all the components to support a complete VoIP service deployment. deltathree's direct-to-consumer channel consists of the iConnectHere direct-to-consumer offering and joip, which powers the VoIP service of Panasonic's Globarange hybrid phone.

For more information about deltathree please visit: www.deltathree.com.

Except for historical matters contained herein, the matters discussed in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements reflect numerous assumptions and involve risks and uncertainties that may affect deltathree's business and prospects and cause actual results to differ materially from these forward-looking statements. Among the factors that could cause actual results to differ are: our ability to obtain additional capital in the near-term to finance operations;  our ability to reduce our costs and expenses and expand our revenues; our ability to retain key personnel and employees needed to support our services and ongoing operations; our dependence on a small number of key customers for a significant percentage of our revenue ; decreasing rates of telecommunications services; the public's acceptance of VoIP telephony, and the level and rate of customer acceptance of our new products and services; the competitive environment of Internet telephony and our ability to compete effectively; fluctuations in our quarterly financial results; our ability to maintain and operate our computer and communications systems without interruptions or security breaches; our ability to operate in international markets; our ability to provide quality and reliable service, which is in part dependent upon the proper functioning of equipment owned and operated by third parties; the uncertainty of future governmental regulation; our ability to protect our intellectual property against infringement by others, and the costs and diversion of resources relating to any claims that we infringe the intellectual property rights of third parties; our ability to comply with governmental regulations applicable to our business; the need for ongoing product and service development in an environment of rapid technological change; and other risks  referenced from time to time in our filings with the SEC and available on the Internet at http://www.sec.gov. Except as required under the federal securities laws and the rules and regulations of the SEC, deltathree does not have any intention or obligation to update publicly any forward-looking statements after the distribution of this news release, whether as a result of new information, future events, changes in assumptions or otherwise.
CONTACT:  Grayling          Investor Relations Contact:          Erik Knettel          1-646-284-9415          ir@deltathree.com          deltathree, Inc.          Ziv Zviel, Chief Financial Officer and Treasurer          1-212-500-4860          ziv.zviel@deltathree.com

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