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Wireless and VoIP News
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Edited for Send2Press by Carly Zander


Dialpad First in VoIP Industry to Reach Profitability

MILPITAS, CA - March 24, 2004 /Send2Press Newswire/ -- Dialpad Communications, Inc. (www.dialpad.com), a leading global provider of Voice over Internet Protocol (VoIP) services, announced today that it reached profitability in the fourth quarter of 2003 and was EBITDA positive for the six month period ending December 31, 2003. Dialpad anticipated attaining profitability by December 2004. These milestones were reached a full year ahead of schedule.

Dialpad pioneered consumer-friendly Internet telephony and offered free calling to the United States when founded in 1999. The company's customer base quickly grew to over 14 million. The erosion of the online advertising market in early 2001 forced the company to file for Chapter 11 protection later that year. Current Chief Executive Officer Craig Walker was appointed to head the restructuring. The business was transformed from a free to a pay service, and the company set a three-year revival plan with a goal to become profitable by December 2004. Dramatically increased efficiencies and a constant focus on quality improvements have allowed for a strong growth of the company's paying customer base, leading to profitability a year earlier than planned.

"These strong results validate what we've always believed: VoIP and profit are compatible," said Dialpad's CEO, Craig Walker. "At the time of the restructuring there was considerable skepticism about our plans since none of our competitors had been able to turn a profit, and to date they still haven't. In two short years we've been able to successfully transition the business to a pay model and to achieve our goal of profitability a full year earlier than planned. It is a first in the Industry."

Dialpad has become a leader in the worldwide retail VoIP industry by focusing on increasing the quality of its service. The company's partnerships with multiple Tier 1 carriers and its real-time dynamic routing capabilities offer a powerful combination of reliability and cost savings to its users, while its award-winning customer support has set a new standard for the industry. In recognition of its efforts and its commitment to end users, Dialpad was chosen by CNET in June 2003 as the best PC-to-Phone service.

"Dialpad benefits from a global brand based on affordability, quality, and ease of use," said Vincent Paquet, Vice President of Business Development and Marketing at Dialpad. "As we sell to consumers in over 200 countries, we consider the quality of our services to remain our best asset for attracting and retaining our customers, whether directly or through our numerous partners across the world. We doubled our call volume over the past two years and we're on course to double it again within the next twelve months. One of the main benefits of Internet Telephony is that our business model is very scalable."

About Dialpad Communications®
Dialpad Communications, Inc. is a leading provider of high-quality Internet calling services, generating over 300 million calls in more than 200 countries worldwide. Dialpad's patent-pending technology has made it the Internet's best phone call, with a large portfolio of services designed to bring the benefits of VoIP to all consumers around the world. The company is based in Milpitas, CA and can be reached at (408) 635-1000.



• Previous News from Dialpad Communications, Inc.



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