(Nasdaq:AUDC) today announced that

Korea Telecom

will be using AudioCodes products to build a voice-over Internet protocol network in South Korea.

Korea Telecom is the nation's biggest communications provider, and the network is one of the biggest VoIP projects in South Korea. It will eventually integrate advanced, next-generation voice and data services over Internet nationwide.

The first phase of the effort, now under testing, is to create a transport infrastructure connecting Seoul with six other Korean cities via IP-based gateways.

The second phase will enable the general public to access the network through phone-to-phone or Web-to-phone links.

Subsequent efforts will incorporate value-added caller services to the system, such as unified messaging, identified call, waiting call, and conference call. The project will also roll out to the rest of Korea on a scheduled basis.

AudioCodes media gateway systems will enable Korea Telecom access to the Web via VoIP from the exchange to the customer's home. AudioCodes explained that the Korean telecom market is characterized by development and speedy deployment of packet-switching networks, as well as by demand for broadband technology. AudioCodes is well pleased with the contract and with its continued penetration into the Asian Pacific market.

In addition, AudioCodes announced a design win with the Korean company


, which will incorporate AudioCodes' communications boards in its gateways.

Korea Telecom is to incorporate the products of both AudioCodes and Cosmobridge in the new VoIP network project.

The significance of Design Win is that AudioCodes products will be incorporated in future versions of its customers' products, in the hope that these will be translated into sales. While this often doesn't happen, the agreement between Cosmobridge and Korea Telecom is a positive development for AudioCodes.

Cosmobridge is a VoIP technology company specializing in Internet switching gateways, gateway management systems, and IP-based value-added telephony services. AudioCodes, a major subcontractor of Cosmobridge, designs and develops communications system components and other enabling technologies for VoIP networks. AudioCodes VoIP communications boards will be a significant part of the transport infrastructure implemented by Cosmobridge. The company will also supply subsystems for the access phase of the network.

The demand for AudioCodes' products in Japan, China and South Korea continues to grow. In the first quarter of 2001, 14% of AudioCodes' revenues were generated by Asia Pacific.

In the first quarter of 2001, 62% of AudioCodes' revenues were generated by communications boards, and 4% came from media gateways. Some 21% of revenues were generated by chips, 9% by modules, and 4% from other sources.