For Release: March 2, 2006

Corporate Contact:

Brenda Keener

408-469-4715

brendak@ipdialog.com

IPDIALOG™, INC. ANNOUNCES GENERAL AVAILABILITY OF THE SIPTONE™ III ETHERNET PHONE

New Affordable Phone Provides Built-in PoE and Ethernet Switch

March 2, 2006, Sunnyvale, Calif. – ipDialog, Inc. today announces general availability of the third generation Ethernet telephone, the SipTone™ III phone. This enhanced product, targeted to systems integrators and service providers, addresses an unfilled gap in voice over IP (VoIP) phone market offerings by providing a full-featured yet affordable enterprise phone. The SipTone™ III phone’s impressive feature-set includes features that reduce set up time and enhance worker mobility, such as integrated 802.af compliant power over Ethernet (PoE) and an Ethernet switch. When used together with an 802.3af PoE injector, an unwieldy power adaptor is eliminated from the telephony solution.

The design of the SipTone™ III phone incorporates a six-year knowledge base of interoperability and general user-friendliness. According to Director of Sales and Marketing Brenda Keener, “The SipTone™ III phone represents the culmination of all that we have learned over the years about voice quality, interoperability, and ease-of-use. Our customers gave us feedback as to what they needed, and we listened to what they had to say.”

Menu navigation and viewability is greatly enhanced by the use of a large 132x64 pixel backlit graphic LCD.

Priced at just $139 MSRP, the SipTone™ III phone represents a significant cost savings over most VoIP or high-end legacy phones with comparable feature sets. This product is shipping in volume today.

ipDialog will showcase the SipTone™ III phone at the upcoming Voice on the Net (VON) show to be held March 14-17 at the San Jose Convention Center in San Jose, CA.

About ipDialog, Inc.

ipDialog, Inc., a Sunnyvale, Calif. company founded in 1999, designs, manufactures, and markets products designed to make Internet telephony ubiquitous. In addition to company headquarters in Sunnyvale, Calif., the company has an R&D office in Chandigarh, India.

The company offers affordable, standards-based products that remove barriers to widespread adoption of Voice over IP (VoIP) technology. ipDialog markets its products through distributors, value-added resellers, system integrators, and through partnerships with core equipment OEMs. ipDialog is the developer of proven and robust VoIP communication technology that supports the standards necessary to ensure interoperability while including a flexible application layer that supports customization for OEM and enterprise applications.

For more information on ipDialog, visit www.ipdialog.com

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ipDialog and SipTone are trademarks of ipDialog, Inc. All other trademarks are the property of their respective owners.