deltathree has acquired the service provider and consumer businesses of Go2Call.com. deltathree signed a definitive agreement to purchase these businesses from Go2Call on February 17, 2007. The transaction closed on February 19, 2007.

Under the terms of the agreement, deltathree acquired Go2Call's consumer and service provider businesses as well as key components of their regional infrastructure worldwide. With the addition of Go2Call's customer accounts, deltathree strengthens its service provider and consumer channels while expanding its presence to new regions of the world.

The consideration for this transaction includes a combination of cash and shares of deltathree, Inc. common stock. Additional details regarding the transaction will be disclosed by deltathree in its filing of a Current Report on Form 8-K with the U.S. Securities and Exchange Commission.

deltathree expects to achieve synergies from gaining this customer base as well as long-term revenue growth and earnings accretion.

"This acquisition of Go2Call's service provider and consumer VoIP businesses represents a complementary match with deltathree's core strategic positioning and offers another distinct path to drive revenue and earnings parallel to our organic growth initiatives," stated Shimmy Zimels, deltathree's President and CEO. "The agreement is a win-win for deltathree, Go2Call and their clients. Through the businesses and infrastructure acquired in this transaction, deltathree expands its presence to new regions of the world with a fortified network. deltathree in turn, will continue to provide Go2Call's established clients with the quality and service they have come to expect. With over a decade of expertise in the industry and a comprehensive strategy for growth, deltathree will provide these new clients with a smooth transition that allows them to continue to enjoy the flexibility and value of VoIP communications without interruption."

Go2Call was founded in 1998 and is headquartered in Evanston, Illinois. Go2Call has been internationally recognized in the development and deployment of hosted VoIP solutions. It has provided its VoIP services and solutions to more than 200 service providers in nearly 100 countries around the world.