Contract Win Marks Deltathree's Continued Expansion Into the
           International Market for Video Phone Services

NEW YORK, Jan. 18, 2011 (GLOBE NEWSWIRE) -- deltathree, Inc.
(OTCBB:DDDC), a global provider of video and voice over Internet
Protocol (VoIP) telephony services, products, hosted solutions and
infrastructures for service providers, resellers and direct consumers,
announced it has secured an agreement to be the service provider for
ACN Korea's digital phone and video phone services in South Korea.
Already available, deltathree's services support ACN's IRIS V Video
Phone, allowing end-users to see friends and family in real-time video
on a seven-inch crystal clear screen simultaneously as they speak over
digital phone service.

Mr. Effi Baruch, Chief Executive Officer, President and Senior Vice
President of Operations and Technology of deltathree, stated, "We are
proud to partner with ACN Korea to bring their customers next
generation digital phone and video phone services across a range of
extremely attractive service plans. This latest service provider
contract win reflects deltathree's continued expansion within the
growing international market for advanced VoIP voice and video
solutions. In addition, it reflects our expanding capabilities, as the
offering is being provided substantially in Korean and utilizes our
application programming interfaces to connect to ACN Korea's external
systems in order to provide a comprehensive offering."

ACN Korea is a division of ACN, Inc., the world's largest direct
selling telecommunications company, which offers a broad range of
telecommunications services in 21 countries in North America, Europe
and the Asia-Pacific region. In addition to supplying the digital phone
and video phone service, deltathree is providing ACN Korea a full
spectrum of service provider back-end support services, including
network management, provisioning, and custom web development. Since its
introduction in December 2010, ACN has added advanced digital
communications customers and expects to accelerate its growth
throughout 2011.

Robert Iorizzo, General Manager, ACN Korea, commented, "Together ACN
Korea and deltathree are bringing communications to life, allowing ACN
Korea video phone customers throughout South Korea to see the person
they are taking to with superb video quality and clarity. deltathree's
broad range of customer-focused IP communications services and seamless
integration with ACN's Global Telecommunications network, coupled with
its flexible back-end solutions, enable ACN Korea to provide our
customers a variety of solutions to meet all their digital
communications needs. We look forward to our continued relationship
with deltathree as we continue to enhance and expand our communications
services in Korea."

About ACN

ACN, Inc. is the world's largest direct seller of telecommunications
services, offering highly competitive services to consumers and small
businesses in North America, Europe and the Asia Pacific region.
Founded in 1993, ACN, Inc. is a privately held company with a
comprehensive telecommunications and home services product portfolio,
including: Digital Phone Service with a centerpiece Video Phone, Local
and Long Distance services, Internet, Wireless, Satellite TV, and Home
Security. ACN, Inc. is able to offer services to its customers by
marketing directly to consumers through hundreds of thousands of
commission-based independent business representatives worldwide.

For more information about ACN, please visit: www.acninc.com.

About deltathree

Founded in 1996, deltathree, Inc. is a global provider of video and
voice over Internet Protocol (VoIP) telephony services, products,
hosted 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 service
provider and reseller channel and its 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 joip Mobile, joip and iConnectHere direct-to-consumer offerings.

For more information about deltathree, please visit our website at
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 successfully seek the return of all or substantially all of the
funds seized by the Department of Homeland Security; 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: Investor Relations Contact:
         Erik Knettel
         Grayling
         1-646-284-9415
         ir@deltathree.com
         
         Company Contact:
         Arie Rand
         Chief Financial Officer and Treasurer
         1-212-500-4860
         arie.rand@deltathree.com