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The following announcement was posted to the newswires at 7am EST March 5. Intel, Red Hat, and Phonetime have joined Simplified in the announcement. Simplified Proves Linux Support for Carrier-Class Telecom Services Phonetime Inc. deploys Simplified Open Services Platform on Red Hat Linux resulting in lower hardware costs for network expansion AUSTIN, Texas - March 5, 2002 - Simplified®, a software infrastructure company, today announced that it has successfully completed the first customer-site deployment of Red Hat® (NASDAQ: RHAT) Linux on the Simplified Open Services PlatformT. The carrier-class platform has been installed on servers powered by Intel processors to control multivendor switch gear in a retail services and wholesale telecom network environment. The deployment was part of an ongoing network expansion plan to enable PhonetimeT Inc. (CDNX:YPO) to better manage its rapidly growing traffic demands. Phonetime Inc. is confident that the deployment of the Simplified Open Services Platform will provide capital savings when compared to server hardware costs on Unix-based servers. Toronto-based Phonetime expects to lower its business expansion costs by integrating Red Hat Linux with its existing Simplified platform implementation, resulting in a stable and highly scalable hybrid (Unix/Linux) network infrastructure. Moreover, Phonetime has experienced increased reliability and levels of connectivity since first passing traffic over the new installation in January. Phonetime processed an average of 1.1 million minutes of call traffic per day during 2001 and is forecasting significant growth in 2002. "We continue to post record revenues and minutes-of-use," said Phonetime President Wayne Silver. "As more cities are brought onto our network through continued expansion, we anticipate improvement on gross margins on prepaid, subscriber and wholesale revenues. We fully expect the company to continue to benefit as a direct result of Simplified upgrades to our network and switching platforms." To add call capacity to its existing Simplified Open Services Platform (running on HP-UX servers), Phonetime contracted with Simplified to help build out its infrastructure. By taking the Linux approach, Simplified will enable Phonetime to purchase more cost-effective servers powered by dual Intel® Pentium® III processors to support and control two new Class 4 switches, significantly lowering its hardware costs. "This illustrates how customers can lower costs by using industry-standard based Intel Architecture servers to handle telecommunications computing tasks that were previously done by more expensive proprietary systems," said Ton Steenman, director, Embedded Intel Architecture Division. "The price performance advantages of Intel Architecture based modular platforms can help service providers deploy lower-cost solutions for high-performance telephony services." Linux is a freely distributable open source implementation of Unix that runs on a number of hardware platforms, including Intel and Motorola microprocessors. Simplified developed the platform from Red Hat Linux, which is testimony to the mainstream capabilities of Linux-based software infrastructure in telecommunications. "Telecommunications is one of the top growth areas for software companies and developers," said Paul Cormier, executive vice president of engineering at Red Hat. "As network hardware becomes open to third-party development, demand for carrier-grade voice and data applications to control the network becomes inevitable. Software developers and the service providers they support now know that Linux is a viable alternative to meet this demand. It provides high reliability while enabling providers to dramatically reduce their hardware costs." By designing the Simplified Open Services Platform to also support the Linux environment, Simplified gives companies an alternative to the Unix-based hardware and software solutions that dominate the telecom landscape. As a result, Simplified expects server costs can be reduced by up to 80 percent in some installations, enabling voice and data service providers to expand services or enter new markets with faster return on investment. "We can point to the efficiency of Simplified's platform as one reason we have managed our growth over the past two years," said Silver. "The continued growth of Phonetime has proven the scalability of Simplified's software solution. The have put to rest any doubts we may have had about Linux's ability to scale to the needs of telecom. This has been an easy expansion and a seamless transition for us, making January 2002 our best month ever," Silver said. "Phonetime personifies Simplified's development objectives," said James Cashiola, president and CEO of Simplified. "Making our customers more efficient has always been at the core of our software design, and offering the Simplified platform on Linux extends that efficiency to broader markets. Linux has proven to be a robust and reliable option for telecom providers, and we look forward to further enterprise-class developments in the Red Hat Linux operating system," Cashiola said. About Simplified Simplified is a software infrastructure company that enables service providers and global enterprises to efficiently manage the supply chain of open voice and data services. As the provider of the industry's first Open Services Platform and owner of patented softswitch technology, Simplified enables voice, Internet, cable and wireless service providers to manage any communication service over any network, while giving enterprises unsurpassed visibility into their communications usage and costs. For more information about Simplified and its products visit www.simplifiednow.com. Simplified®, Simplified Open Services PlatformT and the Simplified logo are trademarks of Simplified Development Corp. The Simplified® mark is a registered trademark. Intel and Pentium III are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. All rights reserved. All other trademarks belong to their respective owners. # # # -------------------------------------------------------------------------------- Scott Campbell Simplified Manager, Media Relations 11100 Metric Blvd, Suite 770 Austin Texas 78758 ph: 512-425-9787 scampbell@simpletel.com www.SimplifiedNow.com