China Telecom launches Dedicated IP based Economy IDD Pre-Paid Phone Card Service with Global Partnerships

China Telecom launches Dedicated IP based Economy IDD Pre-Paid Phone Card Service with Global Partnerships

GENEVA–(BUSINESS WIRE)–Oct. 12, 1999–

Project Enables Largest Network Provider in Mainland China to

Offer New SS7/C7-Based IP Telephony Phone Calling Services

Clarent Corporation (Nasdaq:CLRN), a leading provider of carrier-grade IP telephony technology to carriers, service providers and enterprises, today announced that Clarent is the supplier of IP telephony products to China Telecom for a new dedicated IP-based “Economy International Direct Dial (IDD)” phone service in China.

This new Clarent-enabled IP telephony network will enhance China Telecom’s communications infrastructure and is intended to provide the foundation for China Telecom to offer new services to consumers and enterprise customers in China.

China Telecom plans to launch a variety of international long distance calling services using Clarent products. One of the initial services is a newly branded Economy prepaid calling card called “YiTong.” The YiTong cards can be purchased from China Telecom’s retail locations. The cards allow the users to make calls from China to any international destination at much lower prices than traditional circuit switched calls. Translated from Chinese, “YiTong” means “will provide even more prosperous communication over time.”

Forward Looking Statements

This release may contain forward-looking statements regarding Clarent’s products, business, customers or other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties, including but not limited to potential issues relating to interoperability, inability to introduce new products, ability to retain key customers and other factors, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. These risks and uncertainties are described further in the risk factors discussed in the quarterly report filed with the Securities and Exchange Commission on Aug. 16, 1999.

About Clarent

Clarent Corporation is a premier provider of scaleable, IP telephony products to carriers and Internet service providers around the world. Clarent’s intelligent architecture and the Clarent Command Center enable Clarent products to route, manage, inter-connect and terminate high volumes calls for service provider customers including the world’s largest long distance telecommunication companies. According to a Cape Saffron report published in 1999, more minutes travel across Clarent-enabled networks worldwide than those of any other equipment supplier.(1)

Founded in July 1996, Clarent is headquartered in Redwood City, Calif. and has offices in major cities in Asia, Europe, Latin America and North America. Additional information about Clarent is available at http://www.clarent.com.

About China Telecom

China Telecom is the major telecommunication service provider in China. The IDD group of China Telecom has dedicated circuits connecting to more than 70 countries and more than 80 carriers worldwide. China Telecom currently offers calling services covering 240 countries across the world with annual IDD volume of approximately 2 billion minutes. China Telecom IDD group offers many services including switching, frame relay, X.400, IPLC, EDI, Internet, ISDN, Intelligent Network, and GSM roaming. For global service providers who are interested in global IP telephony partnerships with China Telecom, please contact Ou Yan, Tel: +86-10 6602-7363, Email: ouy@chinatelecom.com.cn.

Note to Editors: Clarent is a registered trademark of Clarent Corporation in the United States and other jurisdictions. All other company or product names mentioned may be trademarks or registered trademarks of the respective companies with which they are associated.

(1) Cape Saffron “Global IP Voice/ Fax Market 1999.” Cape Saffron is an UK-based research group focused on the international voice market. http://www.capesaffron.com

COPYRIGHT 1999 Business Wire

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