Telanetix Reports Fourth Quarter and Full Year 2010 Financial Results

Telanetix, Inc., a leading communications solutions provider offering straightway generation voice services and solutions to the business market, today reported financial results for its 2010 fourth quarter and full year ended December 31, 2010.

Non-GAAP financial measure

Adjusted EBITDA is a non-GAAP financial measure. Management believes certain non-GAAP measures provide relevant and meaningful measures by which investors can evaluate the business. Management uses adjusted EBITDA to evaluate changes in the company's core earning from operations, unaffected by non-cash expenses, expenses related to the company's capital structure, taxes or extraordinary events. EBITDA is defined as revenues or loss previously interest, income taxes, depreciation and amortization, and the company defines Adjusted EBITDA as EBITDA adjusted for non-cash items including stock-based and warrant compensation, charges related to changes in fair market value of warrant and beneficial conversion feature liabilities, as so then as the Company's recent recapitalization. A reconciliation of net income to adjusted EBITDA can be found at the end of this release.

"Our fourth quarter core voice revenue increased 10 percent over the same quarter last year and full-year core revenue grew near 16 percent over 2009," said Doug Johnson, Telanetix's CEO. "Just in case, we achieved our fifth consecutive quarter of positive adjusted EBITDA and first full year positive EBITDA. While the quarter, our legacy revenue flattened out from recent declines, and we expect it to stay flat or modestly improve in 2011.

"While the year we made progress building on our strategic partnerships and expanding our customer reach by adding new channel partners, including Mitel Networks and Vertical Communications, each of which offers our SIP trunking services to clients ranging from medium-sized businesses to Fortune 1000 enterprises. We have seen strong initial interest in these services and expect this to be an important growth driver in 2011.

" 2010 was a pivotal year for Telanetix and we are pleased with our progress and positive steps that have stabilized the company, including completing a comprehensive recapitalization of the Company. We believe we are then positioned now to build on this stable foundation and furthermore expand our presence and share in the marketplace. We expect to achieve continued double digit growth in our core revenue for 2011."

Conference call at 1

Management will conduct a conference call at 1:30 p.m. PT today. To access the call in the United States, dial 314-5232 and to access the call internationally, dial 213-8052 and enter pass code 75412259. The call will as well be broadcast live over the Internet and will be available for replay for 90 days at www.telanetix.com. A telephone replay will be available two hours afterwards the call through March 30, 2011 by dialing 286-8010 in the United States and 801-6888 for international callers. All parties will need the following replay pass code 34842285.

Telanetix, Inc. is a leading communications solutions provider offering voice over IP services to all business market segments. Telanetix solutions meet the real-world communications demands of its clients with an industry-leading value proposition of cutting edge products and innovation that brings enhanced productivity and industry-leading savings to our clients. The company's hosted telecom voice services, marketed in accordance with the "AccessLine" brand, give companies flexible calling solutions, a simpler installation experience, and a greater range of support options than traditional telecom providers. With a history of serving over 100,000 business clients, including Fortune 50 companies, we've scaled our award-winning technologies to meet the needs of entrepreneurial-minded small businesses.

The meaning of applicable federal securities laws

Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, our expectations regarding growth in our core revenue for 2011, anything relating or referring to future financial results and plans for future business development activities, including anticipated effects of distribution relationships, and are along these lines prospective. Forward-looking statements are inherently subject to risks and uncertainties some of which cannot be predicted or quantified based on current expectations. Such risks and uncertainties include, without limitation, the risks and uncertainties set forth from place to place in reports filed by the company with the Securities and Exchange Commission could materially and adversely affect our business, operating results and financial condition. Even though the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Accordingly, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The companies undertake no obligation to openly release statements made to reflect events or circumstances afterwards the date hereof.