Dialog Telekom Deploys Additional Equipment From Ditech Networks Across Its GSM Network

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Ditech Networks (Nasdaq:DITC), a leading provider of voice quality solutions to the world’s communications industry, announced today that Dialog Telekom, Sri Lanka’s leading mobile service provider and a subsidiary of TMI Group, has deployed additional equipment from Ditech Networks to extend voice quality throughout its GSM network. This deployment further establishes Dialog as a technology leader in providing consistent voice quality to its rapidly growing base of mobile subscribers, no matter what mobile device is used or where the call is made.

“At Dialog we are committed to offering world-class technology to our mobile customers, who represent more than 4.5 million Sri Lankans who use a wide variety of mobile devices,” said Mr. Supun Weerasinghe, Chief Operating Officer at Dialog Mobile. “Our partnership with Ditech helps deliver clear voice quality consistently to our subscribers.”

In addition to Sri Lanka, Ditech’s voice quality solution currently supports aggressive mobile services growth in several developing markets around the world, including Indonesia, Brazil, Egypt, India, Algeria, Mexico and Argentina.

“Dialog Telekom continues to play a leading role in Asia for delivering quality voice service while rapidly increasing network capacity,” said Todd Simpson, President and CEO of Ditech Networks. “As a subsidiary of TMI Group, Dialog continues to show its strong commitment to its customers by ensuring that they will experience superior voice quality and Ditech is proud to be its technology partner.”

Dialog Telekom is deploying Ditech’s Quad Voice Processor (QVP) and Broadband Voice Processor (BVP) products, each configured with Ditech’s Voice Quality Assurance (VQA) application. These products are being installed throughout Dialog Telekom’s GSM network. Ditech’s products detect and eliminate network-induced voice quality impairments, impairments from the caller’s environment, and impairments from mobile devices, in real-time on both ends of the call.

About Dialog Telekom PLC

Dialog Telekom PLC, an ISO 9001 certified company, is a subsidiary of TMI Group. The Company operates 2.5G and 3/3.5G Mobile Communications networks supporting the very latest in multimedia and mobile Internet services. Dialog Telekom PLC has the distinction of being the first 3G operator in South Asia to commence commercial operations. Its local coverage spans all provinces of Sri Lanka, while international roaming is provided in over 200 destinations. Dialog Telekom PLC, the largest and fastest growing cellular service in Sri Lanka, serves a subscriber base in excess of 4.5 Million Sri Lankans. For more information on Dialog Telekom visit www.dialog.com

About Ditech Networks

Ditech Networks is shaping the future of voice quality through continuous innovation and leadership for the world’s communications companies. Ditech’s voice quality solutions are deployed in wireless and wireline networks to optimize the call experience. By delivering consistent, dependable voice quality, Ditech’s products help global communications companies meet the multiple challenges of service differentiation, network expansion and call capacity. Ditech’s customers include Verizon, Sprint/Nextel, Orascom Telecom, AT&T, China Unicom, Global Crossing and West Corporation. Ditech Networks is headquartered in Mountain View, California. For more information, visit www.ditechnetworks.com.

Forward Looking Statement

This press release contains forward-looking statements regarding Ditech Networks’ expectations of the performance of its voice quality measurement and optimization technologies. Actual results could differ materially as a result of unanticipated factors and events, including the risk that Ditech Networks’ voice quality measurement and optimization technologies may exhibit unforeseen technical problems that will preclude its use in certain networks, including Dialog Telekom’s network, as well as those detailed in “Item 1A – Risk Factors” of Ditech Networks' Annual Report on Form 10-K for the fiscal year ended April 30, 2008 (filed July 10, 2008, with the Securities and Exchange Commission).

Ditech Networks, Voice Quality Assurance, Quad Voice Processor, and Broadband Voice Processor are trademarks or registered trademarks of Ditech Networks, Inc. All other trademarks are the property of their respective owners.