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Ecuity Launches First Community-wide VoIP Network

29 April 2005

Ecuity, Inc., a leading enhanced Voice over Internet communications company delivering solutions for the small-to-medium business and residential markets, announced today execution of a long-term exclusive agreement with
Community Fiber Network, LLC., providing for the delivery of advanced voice and data services over the community-owned Highlands Fiber Network to residences and businesses within the Issaquah Highlands Community.

With the launch of its new Wired Communities Initiative, Ecuity has assumed a leadership position in delivery of community-based VoIP networks to support the growing need for advanced communications services by innovative mixed-use residential and business developments across the country. Per Shane Smith, CEO of Ecuity, "Looking at the U.S. market alone, there are over 300 private residential developments and municipalities that have Fiber-to-the- Home initiatives in process combined with the scores of planned community-wide
WiFi and WiMax wireless network implementations that are sweeping the country. The market opportunity for advanced voice and data services over these dedicated private/public networks is staggering; in the billions of dollars annually. Ecuity is proud of the "first mover" advantage we've achieved in this important new market and welcome the opportunity to work with a premier organization like Port Blakely Communities."

Issaquah Highlands is a new mixed-use residential and commercial Urban Village development on the outskirts of Seattle incorporating a planned 3200 residential dwellings and 3.8M square feet of commercial space (including
potential uses such as a regional hospital, a hotel, retail shops and a new Microsoft campus). The Developer is Port Blakely Communities, a subsidiary of Port Blakely Companies, a 140-year old land and timber company.

"From the very beginning, Port Blakely Communities has been seeking to make advanced technology a key and essential part of our delivery on the Urban Village concept at Issaquah Highlands, said Judd Kirk, President of Port
Blakely Communities. "The entire community has been wired with a fiber-optic backbone and each home pre-wired with Cat 5e for in-home networking, providing residents with exceptional flexibility and capability. We are excited to leverage the capabilities of the Highlands Fiber Network by partnering with a local technology leader like Ecuity. The flexibility, savings and advanced capabilities of Ecuity's V-Tone VoIP products should prove to be a major hit with the residential and business members of our community."

Ecuity's initial offerings to residential and business customers within the HFN service area will be its award winning V-Tone(TM) enhanced voice over IP (VoIP) services. V-Tone service plans provide a hybrid solution that offers all-inclusive unlimited nationwide calling for both business and residential users, while offering at no additional charge traditional "cost-extra" features such as Caller ID, Voicemail, 3-Way Calling/Conferencing and Call Waiting, and previously unavailable enhanced features such as Unified Messaging (talking emails) and SimulRing(TM) simultaneous ringing of multiple phones (home, office, cell, auto). Service plans range in price from $30 to $50 per month all-inclusive for residential and business use.

The V-Tone service platform is unique in the marketplace in that all plans provide the capability for extensive "groupware" functionally equivalent to a "virtual" PBX comparable in capabilities to the typical phone systems in use by major corporations. Households or businesses enjoy an easy web interface including a home or business attendant console for managing their services, and the capability to control multiple extensions within a household, 4-digit extension dialing, and free in-network calling between V-Tone customers worldwide (i.e. connecting with overseas family members and business partners). Future enhancements will include an IP Videophone, IP audio services, and presence sensing instant messaging extension.

The HFN-Ecuity partnership also features a novel revenue sharing arrangement atypical for a private development. Municipalities, regional and statewide authorities have long had the capability to levy a tax or franchise fee on cable companies or telecommunications carriers for the privilege of delivering services within their boundaries. Residential communities in contrast typically have not had such authority. Per the terms of the
HFN-Ecuity relationship, a fixed percentage of net revenues will be paid monthly directly to the community for support of community initiatives and enhancements to services, facilities and common areas. This truly represents a win-win scenario for all involved parties.

Ecuity has been a provider of end-to-end unified communication technologies with voice and data solutions for the small- to medium-business market for the past 18 years. Ecuity is one of the first facilities-based carriers to offer wholesale residential and business-class VoIP solutions that enable carriers, CLECs, IXCs, cable operators, ISPs, and other value added resellers to provide carrier-quality voice and data services direct to businesses and consumers.

Hosted IP telephony offerings include V-Tone Office(TM) IP PBX and IP Centrex solutions for larger organizations, Small Office, Remote Office and Residential offerings, as well as the SmartCall(TM) mobile worker "soft phone"
and VoWiFi solutions for delivery of advanced communications services via PC's, laptops, and Pocket PC(TM)-compatible PDAs and cellular phones. Additionally, Ecuity offers nationwide broadband, origination and termination
services, centralized billing, technical support and customer service.

As a result of its success in delivering cutting edge Voice Over Internet Protocol (VoIP) services to customers nationwide, Ecuity's subsidiary Ecuity Advanced Communications was named to the 2004 "pulver 100" - the VoIP
industry's premier listing of companies that represent the future of the communications industry.

Ecuity's innovative V-Tone VoIP services platform is currently available for deployment in national and international markets. For information on partnership opportunities with Ecuity call 1-866-41 VTONE (866-418-8663), or outside the U.S. (206) 210-5020, or by email at sales@ecuityinc.com

About Issaquah Highlands

The Northwest's first urban village community, Issaquah Highlands was developed by Port Blakely Communities, a company with a 140-year legacy of leadership and stewardship in the Northwest. Issaquah Highlands combines the scale and pattern of traditional town planning with the access and technology of today. Issaquah Highlands integrates housing, retail, work places, parks, and civic facilities into a close-knit, charming and functional community. Public spaces, from parks to trails, invite interaction and relationship building. For more information on Issaquah Highlands, visit the website at www.issaquahhighlands.com or call 425-427-8736.

About Ecuity, Inc. (www.ecuityinc.com)

As a facilities-based carrier, Ecuity has operated as a traditional telephone company for 18 years, providing service to thousands of customers in the Northwest. Ecuity uses secure next-generation voice services, instant
messaging, data transfer, internet, conference calling and enterprise software to create solutions that meet the communication needs of today's business world. Through the integration of web-based telecommunications and cutting- edge software technology, Ecuity economically delivers secure unified communication solutions that break down distance, time and media barriers to allow people to communicate anywhere, anytime and across multiple mediums. Ecuity has offices in Bellevue and Seattle, Washington.

Source: prnewswire


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