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28th July,2004

Inset above shows : Clarke Ryan (right), NMS Communications, signs the Memorandum of Understanding between NMS and Lucent Technologies. Cheng Kim (left), NMS, and Michael Gabrielli (center), managing director with Lucent Japan's Mobile Network Systems look on.

US : NMS Communications announced that it is working with Lucent Technologies to design and build an advanced optical voice processor for use in next-generation telecommunications networks. This new product will replace equipment developed by the two companies nearly 10 years ago. NMS expects initial commercial deployment within a year.

Lucent and NMS will design and manufacture the next generation of an enhanced optical voice processor for wireless network operators building third-generation networks. The product will provide features similar to those in Studio Sound NMS' industry-leading suite of voice quality enhancements, so that mobile service operators will be able to offer their customers an optimal listening environment for wireless calls by minimizing distractions caused by outside noise such as that caused by traffic or crowds. Advanced signal processing improves call clarity and quality, which is important to customers who are then more likely to use their mobile phones. That helps increase revenue for service providers and reduce customer churn.

"We are delighted to be collaborating again with the original Bell Labs engineering team that so successfully developed the first generation of this processor," said JD Howard, president of Lucent Technologies Japan. "With its more than 20 years of experience in echo cancellation and voice quality technology, NMS was Lucent's obvious choice for a partner in this project."

"We are excited to continue working with Lucent in a custom design to complement Japan's high-quality market needs," said Clarke Ryan, vice president and general manager with NMS. "For this next-generation optical voice processor, we are developing many enhancements designed to work with today's broadband networks, including increased density, an improved network monitoring system, and an STM-0 interface with a 52MB optical link."

About NMS Communications

NMS Communications (NASDAQ:NMSS) is a leading provider of communications technologies and solutions, enabling new enhanced services and efficient networks that help our customers grow their revenues and profits.

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