Yak Communications Licenses Xten's eyeBeam and X-PRO VoIP & Video SIP Softphones

MIAMI & TORONTO--(BUSINESS WIRE)--Jan. 12, 2005--

Features to be Used for Phase II of Yak WorldCity VoIP Product Offering

“Yak's first principle is to deliver extraordinary value to our customers, whose primary calling patterns are long distance calls in North America and worldwide”

Yak Communications Inc. (NASDAQ:YAKC), a provider of telecommunication services to residential and business customers, and Xten Networks, Inc. (OTCBB:XNWK), a provider of VoIP (Voice over Internet Protocol), Video over IP, Instant Messaging, and Presence SIP softphones, today announced that Yak has entered into a software licensing agreement with Xten. Under the terms of the agreement, Yak has licensed Xten's eyeBeam SIP (Session Initiation Protocol) softphone, which delivers open standards VoIP, Video, Instant Messaging and Presence, and Xten's X-PRO SIP softphones.

"We are excited that Yak is bringing to the long distance market a new world of VoIP services, using Xten's leading edge SIP terminals," said Erik Lagerway, President and Chief Operating Officer of Xten Networks. "Yak's co-branded Xten eyeBeam software will allow its customers to make and receive phone calls or video phone calls directly on their personal computers without the need for a regular analog phone. All that is required is a personal computer or laptop running Microsoft Windows, a sound card, and a headset. This is truly a plug-and-play VoIP product bundled with a long distance program for the consumer markets".

Xten standards-based applications include the feature-rich FREE SIP softphone, X-Lite, X-PRO, with all the features and functionality of a small business phone system, and the new eyeBeam software SIP terminal, a SIP softphone that includes advanced VoIP features, Video Conferencing, Instant Messaging, and Presence features.

The eyeBeam feature set includes an array of robust SIP telephony features also offered in Xten's award-winning X-PRO SIP softphone, including call transfer/forward, caller ID, and 10-point conferencing. eyeBeam enhances this feature set with the addition of video, instant messaging and presence, acoustic echo cancellation, wide-band codec selection, audio and video recording, voice activity detection, adaptive jitter buffer and message waiting indicator. The eyeBeam SDK is comprised of more than 30 low-level APIs including the following: Audio Mixer, Video Mixer, HTTP, STUN, SIP Stack, SIP Call Control, SDP, RTP, ICE, DNS.

"Yak's first principle is to deliver extraordinary value to our customers, whose primary calling patterns are long distance calls in North America and worldwide," said Charles Zwebner, Chairman and Chief Executive Officer of Yak Communications. "The partnership with Xten Networks is expected to provide our customers with benefits that historically have been cost prohibitive to them. Now our high speed VoIP customers, in addition to being able to make inexpensive calls to anywhere in the world, will also be able to video-talk, free of charge to any Yak VoIP customer globally. We see the use of VoIP technology as the beginning of a global movement in 2005, where consumers and small businesses will want to take advantage of a truly plug and play high tech environment. Using our VoIP products and services, Yak customers not only will receive more calling time, but also video calling time at a low price point. Yak is on target to begin aggressively marketing our VoIP products and services, and we are excited to commence this program in the next few weeks," added Zwebner.

About Yak Communications Inc.: Yak Communications Inc. (the "Company") (NASDAQ:YAKC) is an Integrated Communications Provider (ICP) offering a full array of long distance (1+, toll free and dial-around), local lines, travel cards, cellular long distance, data services, and broadband voice (VoIP) to residential and small businesses in North America over high speed internet access. Yak currently serves approximately 860,000 customers for its traditional telecom services. For more information, visit http://www.yak.com

About Xten Networks, Inc.

Xten is a developer of award-winning, high-quality, carrier-grade SIP softphones for service providers, cable operators, Internet telephony service providers, IP PBX manufacturers and OEMs. Xten's SIP softphones are available either pre-configured or as a software development kit (SDK), and provide VoIP (Voice over IP), Video over IP, IM (Instant Messaging), and Presence functionality. Xten has a feature-rich FREE SIP softphone dubbed X-Lite, in addition to the fully featured X-PRO commercial softphone and eyeBeam, a SIP Video over IP softphone with IM and Presence. Through its deployments with leading service providers, Xten has more than 700,000 IP endpoints deployed worldwide. For more information please visit www.xten.com.

Forward Looking Statements:

Statements contained in this news release which are not strictly historical are forward looking within the meaning of the safe harbor clause of the Private Securities Litigation Reform Act of 1995. The Company makes these statements based on information available to it as of the date of this news release and assumes no responsibility to update or revise such forward-looking statements. Editors and investors are cautioned that forward-looking statements invoke risk and uncertainties that may cause the Company's actual results to differ materially from such forward-looking statements.

Words such as "projects", "believe", "anticipates", "estimate", "plans", "expect", "intends", and similar words and expressions are intended to identify forward-looking statements and are based on our current expectations, assumptions, and estimates about us and our industry. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Although the Company believes that such forward-looking statements are reasonable, we cannot assure you that such expectations will prove to be correct. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of several factors, risks and uncertainties. These factors, risks and uncertainties include, without limitation, the Company's success in integrating the operations of its newly-acquired businesses, and associated reduction in costs, the successful implementation of its business plans including growth of existing product offerings, strategic acquisitions and development of broadband telephony products, the successful integration of new management team members, continued and increased demand for its services, the successful deployment of new equipment and realization of material savings there from, competition from larger and/or more experienced telecommunications providers, its ability to continue to develop its markets, general economic conditions, changes in governmental regulation, and other factors that may be more fully described in the Company's literature and periodic filings with the Securities and Exchange Commission. You are urged to carefully review and consider these disclosures which describe certain factors which affect our business.

Xten Networks, Inc. (OTC Bulletin Board:XNWK)

Yak Communications Inc. (NASDAQ:YAKC)