Sangoma to acquire Paraxip Technologies

TORONTO, ONTARIO: Sangoma Technologies Corp., a premium provider of PC-based hardware and software for proprietary and open source networking and telephony solutions, has entered into an agreement to acquire all of the shares of Paraxip Technologies Inc. for $4.8 million, payable as to $1.9 million in cash and 2.3 million Sangoma common shares.

Paraxip is a leading developer of IP connectivity software that empowers the deployment of IP telephony applications. Founded in 2003, Paraxip's customers include IBM, Genesys (a subsidiary of Alcatel-Lucent), First Data Corporation and the State of California.

The integration of Paraxip's SIP based NetBorder suite into Sangoma's product line provides Sangoma with a growth path that includes the Unified Communications market, IP contact centers, commercial interactive voice response solutions and other SIP-based telephony markets. The combined products and channels of the two companies considerably extend Sangoma's current addressable market range by providing support for all software-based telephony applications.

"This acquisition is part of Sangoma's strategy for addressing the expanding market for telephony applications of all types, particularly the segment of the market that demands proprietary, well supported solutions," said David Mandelstam, President and CEO of Sangoma Technologies. "The Paraxip transaction not only bolsters Sangoma's Windows-based offerings, but also represents a major advancement for the Open Source community. By combining Paraxip's gateway products with our premium hardware and drivers, we will provide the Open Source telephony community with a new level of compliance, reliability and scalability."

"The acquisition is a natural fit that opens up a sizeable Open Source market for Paraxip's gateway products and lets us leverage Sangoma's worldwide channel of distributors," said Serge Forest, Paraxip's President and CEO. "The deal provides Sangoma, in return, with highly differentiated connectivity solutions, including our patent-pending Call Progress Analysis technology, for servicing the fast-growing Contact Center market, as well as access to that market through Paraxip partners. We believe this to be a very synergistic combination."

In addition to at least four other nominees designated by the current Board of Sangoma, Paraxip shareholders will be entitled to nominate two individuals to the Sangoma Board at Sangoma's next annual shareholders meeting. The transaction is expected to close on or about July 14, 2008.