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AudioCodes Acquires N.S.C. Natural Speech Communication
GlobeNewswire
2010-05-11


LOD, Israel, May 11, 2010 (GLOBE NEWSWIRE) -- AudioCodes (Nasdaq:AUDC),
a leading provider of Voice over IP (VoIP) technologies and Voice
Network products, today announced that it had entered into an agreement
to acquire all of the outstanding equity of N.S.C. Natural Speech
Communication Ltd. ("NSC") that it does not currently own. NSC is based
in Israel and is engaged in speech analytics, speech recognition
technologies and products. Over the past several years, AudioCodes had
made a series of investments in NSC in an aggregate amount of $8.6
million that had raised its ownership interest prior to the execution
of this agreement to 59.7% of the outstanding share capital of NSC
(51.5% on a fully diluted basis). As of December 1, 2008, AudioCodes
began to consolidate the financial results of NSC into the financial
results of AudioCodes.

The closing of the transaction, which is subject to regulatory
approvals in Israel, is expected to occur in May 2010. Pursuant to the
agreement, AudioCodes will pay an aggregate of approximately $1.2
million for the remaining interest in NSC, payable in three annual
installments commencing on the first anniversary of the closing.
AudioCodes will also be required to pay an additional purchase price of
up to $500,000 in 2013 if certain aggregate revenue milestones are met
for 2010, 2011 and 2012.

"The acquisition of NSC underscores AudioCodes' strategy of
strengthening its technology base and offerings for the enterprise and
residential telephony markets," said Shabtai Adlersberg, Chairman,
President and Chief Executive Officer of AudioCodes. "Speech analytics
and speech recognition increasingly become an integral part of emerging
media applications and adding these capabilities will help us to
increase our competitive edge in our markets."

About AudioCodes

AudioCodes Ltd. (Nasdaq:AUDC) designs, develops and sells advanced
Voice over IP (VoIP) and converged VoIP and Data networking products
and applications to Service Providers and Enterprises. AudioCodes is a
VoIP technology leader focused on VoIP communications, applications and
networking elements, and its products are deployed globally in
Broadband, Mobile, Cable, and Enterprise networks. The company provides
a range of innovative, cost-effective products including Media
Gateways, Multi-Service Business Gateways, Residential Gateways, IP
Phones, Media Servers, Session Border Controllers (SBC), Security
Gateways and Value Added Applications. AudioCodes underlying
technology, VoIPerfectHD(TM), relies primarily on AudioCodes leadership
in DSP, voice coding and voice processing technologies. AudioCodes High
Definition (HD) VoIP technologies and products provide enhanced
intelligibility, and a better end user communication experience in
emerging Voice networks. For more information on AudioCodes, visit
http://www.audiocodes.com

Statements concerning AudioCodes' business outlook or future economic
performance; product introductions and plans and objectives related
thereto; and statements concerning assumptions made or expectations as
to any future events, conditions, performance or other matters, are
"forward-looking statements'' as that term is defined under U.S.
Federal securities laws. Forward-looking statements are subject to
various risks, uncertainties and other factors that could cause actual
results to differ materially from those stated in such statements.
These risks, uncertainties and factors include, but are not limited to:
the effect of global economic conditions in general and conditions in
AudioCodes' industry and target markets in particular; shifts in supply
and demand; market acceptance of new products and continuing products'
demand; the impact of competitive products and pricing on AudioCodes'
and its customers' products and markets; timely product and technology
development/upgrades and the ability to manage changes in market
conditions as needed; possible disruptions from acquisitions; the
integration of acquired companies' products and operations into
AudioCodes' business; and other factors detailed in AudioCodes' filings
with the Securities and Exchange Commission. AudioCodes assumes no
obligation to update the information in this release.

(C) 2010 AudioCodes Ltd. All rights reserved. AudioCodes, AC,
AudioCoded, Ardito, CTI2, CTI², CTI Squared, HD VoIP, HD VoIP
Sounds Better, InTouch, IPmedia, Mediant, MediaPack, NetCoder, Netrake,
Nuera, Open Solutions Network, OSN, Stretto, TrunkPack, VMAS,
VoicePacketizer, VoIPerfect, VoIPerfectHD, What's Inside Matters, Your
Gateway To VoIP and 3GX are trademarks or registered trademarks of
AudioCodes Limited. All other products or trademarks are property of
their respective owners. Product specifications are subject to change
without notice.


CONTACT:  AudioCodes Ltd.
          Shirley Nakar
          +972-3-976-4000
          Shirley@audiocodes.com



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