BayPackets’ Network Services Platform and Enhanced Applications to Power Touch America’s Migration to Next-Generation Infrastructure

FREMONT, Calif. and BUTTE, Mont. — September 3, 2002 — BayPackets, Inc., a communications software provider for delivery of enhanced voice, data and multimedia services, today announced that Touch America Holdings, Inc. (NYSE: TAA), a broadband fiber-optic network products and services company, will deploy BayPackets’ advanced network services platform and applications to deliver enhanced and cost competitive voice services to its enterprise customers.

BayPackets’ flexible, multi-service and network-independent Rapid Service Introduction (RSI) platform and applications will enable Touch America to seamlessly migrate its voice virtual private network (VPN) and toll-free services from costly, leased network resources to its own cost-effective packet network.

“Time-to-service for customers and time-to-revenue for Touch America are key metrics for the company in today’s telecom space,” said Mike Meldahl, Touch America’s president and chief operating officer. “BayPackets’ RSI platform and enhanced applications will allow us to take advantage of the cost and service benefits of our Voice-over-IP network. And BayPackets supports service deployment over circuit and packet networks, which will make it possible to quickly add new, revenue-generating services by migrating customers to our state-of-the-art packet network without any interruption or loss of quality in service.”

The BayPackets RSI Network Services Platform enables service providers to reliably and quickly deploy customized, revenue-generating applications across wireline, wireless and cable networks. BayPackets RSI Network Apps™ Suite is a set of prepackaged revenue-generating network service applications powered by the RSI Network Services Platform. They include Voice VPN, Advanced Toll Free, Unified Communications, Voicemail, Single Number Service and Internet Call Manager. “Like many carriers, Touch America is looking for ways in which to capitalize on the efficiencies and benefits of packet-based technologies to bring to market value-added, enhanced services,” said Ken Epps, president and chief executive officer, BayPackets, Inc. “Using BayPackets flexible next generation service platform and feature rich applications gives them the benefits of packet technology without compromising quality and reliability. In addition, other key features such as BayPackets’ flexible Web-based management interface will enable Touch America and its customers to remotely provision and customize services, which will improve the bottom line by reducing operating and maintenance costs.”

About Touch America
Touch America, Inc. is a national broadband fiber-optic network and product and services telecommunications company, providing customized voice, data and video transport, as well as Internet services, to wholesale and business customers. The company provides the latest in IP, ATM and Frame Relay protocols and private line services for transporting information with speed, privacy and convenience. Touch America has approximately 750 employees in 17 states and the District of Columbia. Touch America, Inc. is the telecommunications operating subsidiary of Touch America Holdings, Inc. (NYSE: TAA). More information can be found at http://www.tamerica.com.

About BayPackets, Inc.
BayPackets is a communications software company enabling service providers to rapidly deploy revenue generating enhanced network-based voice, data and multi-media services via a single point. The company delivers The New Service Point™ with its carrier-grade Rapid Service Introduction™ (RSI) system, a network service platform that allows wireline/wireless carriers and Cable MSOs to rapidly and cost-effectively deploy differentiated network services across circuit-switched and packet-based networks. Founded in February 2000, BayPackets is a privately held company that has received funding from industry-leading venture capital firms. The company is headquartered in Fremont, CA, with a development center in Noida UP, India. For more information visit BayPackets at http://www.baypackets.com.

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