Ascalade launches new line of VoIP products

Ascalade Communications Inc. (TSX: ACG - News) announced today the launch of its new line of PC-based Voice over Internet Protocol ("VoIP") products, the Companion(TM) series. The Companion(TM) series of VoIP products combines the convenience of a cordless phone with the functionality of VoIP telephony. VoIP is a rapidly emerging technology, which allows the routing of voice conversations over any IP-based network, including the Internet, without the restriction of traditional voice transmission lines.

The Companion(TM) product line is designed to address a large and growing market segment of people who already use VoIP communications on their personal computers by using messaging, or peer-to-peer applications, such as Skype(TM) to make voice calls over the internet. Skype has 58 million registered users and was recently acquired by eBay Inc. for US$2.5 Billion.

The Companion(TM) series of cordless phones is designed for these applications and allows a customer to make VoIP calls, without being tied to their computer. Using Ascalade's innovative design, the base of the Companion(TM) phone simply connects to a PC, via a USB cable. The base uses digital cordless technology to support up to 4 cordless phones, which can be used up to 300 meters away from the computer, giving a customer the ultimate freedom when using PC-based Internet telephone services.

"We are very excited to announce the availability of our first Voice over IP product line," said Edmund Ho, President and CEO of Ascalade Communications Inc. "With the emergence and growth of IP-based voice services, we are using our engineering expertise in cordless communications and VoIP technology, to make it easy for consumers to make VoIP calls using PC-based Internet telephone services without being tied to their Computer. The Companion(TM) product line ensures that we are positioning Ascalade to design and deliver the communication products of the future."

Ascalade has commenced with initial volume shipments of the Companion(TM) product line to a key customer, recognized as a global leader in home networking equipment.

About Ascalade:

Ascalade Communications Inc. designs and manufacturers wireless communications products for branded distributors and telecommunications companies. The Company's current products include digital cordless phones, VoIP phones, digital wireless enterprise conference phones and digital wireless baby monitors. The Company's vertically integrated design, manufacturing and distribution offices are located in Richmond, British Columbia (head office), Dongguan (China), Hong Kong and London (England).

Forward Looking Statements:

This discussion and analysis in this press release contains forward- looking statements that involve risks and uncertainties. When used in this discussion and analysis the words "will", "plan", "expect", "believe", and similar expressions generally identify forward-looking statements. These statements are not historical facts, but reflect our current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risk Factors" and other sections of the prospectus filed on June 17th, 2005.

The Company disclaims any intention or obligation to update or revised any forward-looking statement, whether as a result of new information, future events or otherwise.

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