Technology Marketing Corporation INTERNET TELEPHONY magazine (www.itmag.com) has named Interoute's ARENA as a recipient of its 2005 Product of the Year Award. Interoute, one of the world's fastest growing communications services providers, introduced the innovative VoIP trading exchange less than a year ago and already has attracted more than 100 global customers -- including British Telecom, Belgacom, Czech Telecom, AllStream, MCI and India's VSNL - by making voice trading easier and eroding the traditional barriers to market entry.

"We are delighted that ARENA has been recognized as 'Product of the Year' by Internet Telephony," said James Kinsella, executive chairman of Interoute. "It is the world's most significant VoIP peering platform as evidenced by the industry heavyweights it has attracted who use it to strategically outsource connectivity rather than building it. PTTs and mobile operators are choosing ARENA for the best open and direct routing of VoIP, which allows them to transform and grow their business. And it's our advanced and scalable IP network that makes it all possible."

"Each year INTERNET TELEPHONY magazine bestows its Product of the Year awards on companies that have demonstrated excellence in technological advancement and application refinements. Interoute has demonstrated to the editors of INTERNET TELEPHONY that its ARENA VoIP Exchange is committed to quality and innovation while addressing the real needs in the marketplace," said Rich Tehrani, Group Publisher and Editor-in-Chief of INTERNET TELEPHONY.

ARENA is the latest service on Interoute's Virtual Voice Network (VVN), based on softswitch technology that enables operators to enter the voice market quickly without costly infrastructure investment. By logging-on to the ARENA web portal, customers can seamlessly open routes to each other, regardless of their location or the protocol they are using. The service also provides for full route management and reporting via the desktop.

Unlike traditional providers, Interoute ARENA is commission-free and customers are only charged for utilizing ports to access Interoute's VVN. It also offers far lower combined port and circuit prices than conventional interconnection services. A viable solution to carriers searching for better ways to negotiate international call termination agreements, the VoIP trading exchange also provides a predictable and manageable cost structure. Plus, it eliminates the need for operators to establish multiple interconnection agreements, which are time intensive and require on-going management of circuits.

Interoute is benefiting greatly from the international expansion of U.S. based carriers, ISPs, resellers and enterprises as they try to generate incremental revenue through new markets, especially Europe, Eastern Europe, the Middle East and Africa and beyond. Through its innovative technologies like ARENA, U.S. based carriers and enterprises can extend their capabilities throughout all of Europe without the hefty CapEx of building their own network or quilting one together. Plus, the Interoute one-stop solution versus dealing with multiple networks and contracts saves critical time in negotiations and managing.

The Product of the Year Award winners for 2005 will be highlighted in the January and February 2006 issues of INTERNET TELEPHONY magazine. INTERNET TELEPHONY has been the VoIP Authority Since 1998.