SPIRIT Budgets Another $6.38 Million for R&D within the Next 12 Months; To Strengthen its Global Leadership in Multi-Point Voice Conferencing Engine

LONDON----July 22, 2005--SPIRIT DSP (www.spiritDSP.com/voip), a leading provider of embedded voice communication software products, today announced allocation of $6.38M from SPIRIT profits to voice-related R&D within the next 12 months. The budget will help to extend the current SPIRIT 80 telecom engineers development team by another 30 VoIP software professionals by Q4 2005, as a part of the corporate strategy aimed at the further strengthening of SPIRIT's leading positions in the voice processing market.

SPIRIT technological leadership in sophisticated voice processing is based on 12 years of practical experience gained in over 250 successfully completed projects for the global telecom leaders. Today SPIRIT applies its deep expertise in embedded voice to all major communication platforms - PC, PDA and 3G handsets - focusing on the hot VoIP market.

SPIRIT's flagship field-proven and award-winning product, TeamSpirit(TM) multi-point voice conferencing engine, has practically no real alternatives in the global market for enterprise-grade multi-point full-duplex software voice engines. TeamSpirit(TM) is the only voice engine enabling complete high-quality multi-point voice conferencing functionality within integrated communication and collaboration server solutions. TeamSpirit(TM) efficiently handles all the issues of voice communication over packet networks, including being robust to 30% packet loss and delays. TeamSpirit(TM) provides superior voice quality not only in peer-to-peer talk, which is now available from a number of vendors, but also in a conferencing with many participants, which is critical for enterprise customers with distributed offices and/or mobile workers. SPIRIT's voice engine is highly optimized to meet the tough requirements to voice quality, fidelity, reliability, security, functionality and cost saving. Unlike any competitors, TeamSpirit engine delivers full-duplex voice in hands-free, and more importantly headset-free scenario on PC and mobile platforms.

"TeamSpirit(TM) multi-point voice conferencing engine is now in high demand by enterprise customers, so SPIRIT is growing to continue be global #1 multi-point voice conferencing engine," said Andrew Sviridenko, SPIRIT's founder and chairman. Professionals are the main asset of technology innovator like SPIRIT, so the money will be put into attracting the best telecom talents and brains to reinforce SPIRIT technological advantage. SPIRIT is now already active in mobile and video markets, and SPIRIT sales are strong and growing in both US and Asia. In 2004 SPIRIT executed over 100 new licensing contracts. Several US enterprise collaboration and conferencing software customers, including Oracle and Macromedia, as well as several Asia-based mobile OEMs are deploying SPIRIT-enabled products in 2005."

About SPIRIT

Moscow-based SPIRIT DSP (www.spiritDSP.com/voip) employs 120 professionals, has been in international software licensing business since 1992. SPIRIT is a bootstrap and has been profitable for 12 years. SPIRIT focus is communication, speech and VoIP software products and today SPIRIT counts among its clients Agere, Atmel, Flextronics, Ericsson, Furuno, Hyundai, JRC, Kyocera, LG, Macromedia, Marconi, NEC, Nortel Networks, Oracle, Panasonic, Philips, Polycom, Samsung, Siemens, Texas Instruments and Toshiba, among 150+ other communication OEMs and software vendors. Through the brand names SPIRIT communication software is used in over 70 countries and powers over 50 million voice channels. SeeStorm is SPIRIT subsidiary for synthetic video conferencing.