Sangoma Acquires All Key Assets of VegaStream

MARKHAM, ONTARIO — Sangoma Technologies Corporation, a leading provider of hardware and software elements that enable or enhance IP Communications Systems for both voice and data, announced it has acquired the key assets of the VegaStream Group of Companies, a leading UK-based developer of VoIP (Voice over Internet Protocol) gateway appliances.

The business operations of VegaStream will be quickly integrated into Sangoma's, with VegaStream staff being welcomed as part of the respective Sangoma teams, the majority being in R&D and Sales and Marketing. The VegaStream products will become part of the Sangoma portfolio with clients rapidly benefiting from Sangoma's reputation for efficient supply chain management and quick turnaround of customer orders.

Sangoma is investing in new marketing, sales and product development initiatives, and this transaction is furthermore evidence of such investments to drive ongoing growth. The acquisition of VegaStream helps Sangoma to achieve several of its strategic objectives: broadening its portfolio, adding to its distribution network, delivering existing channel partners a more comprehensive set of products, affording Sangoma an EU office to enable better service to this critical part of the world in local time zones, expanding its customer base and customer segments, and penetrating more deeply into developing regions, including significant upside in the key market of India with some excellent large customers.

"VegaStream has some in point of fact great products, people, clients and distributors", said Bill Wignall, President and CEO of Sangoma. Wignall continued, "As the IP Communications market evolves, Sangoma is re-inventing itself in order to become a significant player in more segments within that market. This acquisition supports one of our key corporate messages, 'We are not just a board company anymore'. For years, Sangoma has provided the industry's leading portfolio of TDM to IP cards for use inside servers, and we will continue to dominate that space. After all, external gateways which provide much of the same functionality however reside outside the server as their own appliance, are becoming increasingly popular, and we want to offer our clients both options. External gateways expand our addressable market, can be easily integrated into Virtualized and Cloud based solutions, in short we hope to capture additional opportunities in this space as so then as in our traditional segment. We decided to accelerate our entry to this market segment, using a 'buy versus build' decision, adding the then-respected VegaStream products to our portfolio. I expect this transaction will create value for Sangoma shareholders and clients alike." We plan to continue our growth by both organic means and a few more strategically selected acquisitions.

Alexis Argent, Sales Manager at VoIPon in the UK stated, "As a customer/partner of both Sangoma and VegaStream, we believe that this acquisition will allow us to meet moreover of our clients' demands with a more comprehensive portfolio from a much stronger partner in Sangoma. We look forward to being able to offer enterprise clients and network operators their choice of either internal cards or external gateways for their IP networking needs."

Leading provider of hardware

Sangoma is a leading provider of hardware and software products that enable or enhance IP Communications Systems for both telecom and datacom applications. Enterprises, SMBs and Carriers in over 150 countries rely on Sangoma's innovation as part of their mission critical infrastructures. Through its worldwide network of Distribution Partners, Sangoma delivers the industry's best engineered, highest quality products, and offers the industry's first lifetime warranty. The product line includes data and telecom boards for media and signal processing as so then as gateway appliances and software.

This press release contains forward-looking statements, including statements regarding the future success of our business, development strategies and future opportunities.

Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the opportunity that the predictions, forecasts, projections and other events contemplated by the forward-looking statements will not occur. Though Sangoma believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct as these expectations are inherently subject to business, economic and competitive uncertainties and contingencies. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in the management's discussion and analysis include, nevertheless are not limited to changes to make up for it rate between the Canadian Dollar and other currencies, changes in innovation, changes in the business climate, changes in the regulatory environment, the decline in the importance of the PSTN and new competitive pressures. The forward-looking statements contained in this press release are specifically qualified by this cautionary statement.