SOURCE: Global IP Sound

June 27, 2005 03:45 ET

Global IP Sound Raises $6.38 Million in Funding to Support Geographic, Sales and Technical Expansion

Total Subscription Reaches 235% of Allocated Shares

SAN FRANCISCO, CA -- (MARKET WIRE) -- June 27, 2005 -- Global IP Sound (GIPS), a leading provider of embedded voice-processing solutions for the Voice over IP market, today announced that it has received $6.38 million (US) in funding. The company issued 3.5M new shares at a share price of 12 NOK. Through a book building process the company was able to generate interest for 8.2 million shares, which translates to an subscription of 235% of the allocated amount. The company will use the funds to capture the expanding VoIP market opportunities in both technology and market positions.

"2005 will be our year of expansion. We are excited at the prospect of extending the reach of GIPS technology in both products and markets," said Gary P. Hermansen, President and CEO of GIPS. "Our first goal is to support our product development efforts in order to continue our tradition of product innovation and industry leadership. Meanwhile, we've set our sights on capturing significant market share in the booming Asian market and on exploring new opportunities in the mobile and video markets."

In 2004, Global IP Sound executed over 30 new license contracts and expanded its customer list to more than sixty active accounts. Corporate revenues increased 267 percent over 2003, for a positive cash flow for the year. Later this year, the company anticipates that a number of major customers, including Logitech, Net2Phone, WebEx and Teleo, will begin deploying GIPS-enabled products.

Over the past year the company has made a number of significant additions to its product portfolio, including: the introductions of GIPS Voice Quality Enhancement (VQE), a comprehensive module that eradicates echo and background noise in Voice-over-IP; VoiceEngine Mobile for Symbian, an award-winning solution that lets vendors of smart phones and PDAs deliver a level of voice quality far superior to current cellular telephony; and VoiceMail Engine, a server-based, enterprise-class solution which lets applications developers quickly and successfully build a fully functional and high-quality voicemail application for VoIP telephony systems.

The company plans to continue to develop new voice-processing technologies that help application developers, as well IP phone, gateway and chip manufacturers, improve sound quality and ease of implementation in voice over packet networks. GIPS will extend its engineering team with an additional eight engineers, and will explore new solutions that address the needs of video and wireless applications.

In addition, GIPS will continue its penetration into the Asian market. The company will open a sales operation office in order to make strong inroads into the rapidly growing Asian market. The company will open its new office, which will be staffed with engineering and sales personnel, later this fall. GIPS will also be adding sales, marketing and engineering staff in the United States and in Stockholm in order to better serve existing accounts and to provide optimum service and support for its newest market segments.

About Global IP Sound

Founded in 1999, Global IP Sound develops embedded voice processing technologies for real-time communications over packet networks. GIPS SoundWare™ provides better than PSTN voice quality and fidelity in end-to-end IP communications with robustness against packet loss. Global IP Sound's world-renowned speech processing and IP telephony experts deliver these solutions to applications developers, gateway and chip manufacturers. Companies using GIPS SoundWare™ products include Nortel Networks, Skype, WebEx, Marratech, and other key players in the VoIP market. Global IP Sound is a member of the Intel® PCA Developer Network, the Motorola Design Alliance, and Texas Instruments' third-party developer network. Global IP Sound has headquarters in Stockholm and San Francisco. More information is available at www.globalipsound.com.

Contact Information

  • For additional information, contact:
    Wendy Toth
    Global IP Sound
    Email Contact
    (415) 438-2613

    Donna Candelori
    Candelori Communications
    Email Contact
    (408) 774-3414