Touch America To Deploy Voice Over IP Network And Products Using Sonus Networks Equipment

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Touch America Expects to Carry All Voice Traffic Over Next-Generation Network, Cites VoIP's Ease of Use, Low Cost and Advanced Features

BUTTE, Mont., and WESTFORD, Mass., October 30, 2001 – Touch America, the broadband network and service provider subsidiary of The Montana Power Company (NYSE: MTP), announced today it will use Sonus Networks' (Nasdaq: SONS) softswitch and media gateway systems for all Touch America voice traffic to be carried on its advanced Voice over IP (VoIP) network. Sonus equipment will be used to convert voice conversations into data packets for high-speed transport over Touch America's broadband, packet-based Internet Protocol (IP) network. Touch America will serve both enterprise and carrier customers, improving quality of service and lowering costs through the efficient use of one telecommunications line capable of carrying both voice and data instead of customers paying for a data line and one or more voice circuits. Touch America will take until 2003 to fully migrate its traditional circuit-switched voice traffic to its VoIP fiber-optic, broadband network.

"Voice over IP provides businesses a digital communications advantage, and this announcement underscores Touch America's commitment to deliver the products and services customers tell us they want," said Mike Meldahl, president and chief operating officer, Touch America. "We believe we can successfully penetrate this market, and by 2003, we intend to carry all our voice traffic on our growing IP network. Working with Sonus, we will create a versatile and scalable VoIP platform that will allow us to deliver a wide variety of next-generation services and the same rock-solid quality that people have come to expect from traditional, circuit-switched networks."

Touch America is expanding its fiber network to roughly 26,000 route miles by year-end, giving it one of the largest and highest-capacity long-haul networks in the U.S. At the same time, it is building an OC-level IP backbone on top of the fiber network, expanding its functionality and scalability.

"Our network was designed and built for multimedia transport and is ready to be conditioned for Voice over IP," Meldahl said. "Owning the transport and IP networks allows Touch America to control bandwidth, delivering the high-quality, packet-based voice solution."

Touch America also will deploy solutions from two of Sonus' "Powered" Open Services Partner Alliance(SM) (OSPA) members: calling card services from Pactolus Communication Software and conferencing solutions from Voyant Technologies.

"Touch America has established itself as a leading player in the next-generation telecommunications landscape, with a long-haul fiber network and two decades of experience as a telecom provider," said Hassan Ahmed, president and CEO, Sonus Networks. "We are thrilled that the company has chosen Sonus, and our partners, to create a foundation for delivering advanced voice services. We look forward to building upon this successful relationship."

Touch America will use a complement of Sonus packet voice solutions - the GSX9000 Open Services Switch, the PSX6000 SoftSwitch, the SGX2000 SS7 Signaling Gateway and the Sonus Insight element management system that controls the product family - as the basis for its VoIP network. Sonus also will provide a full range of professional services and support. 

By deploying a Sonus-based packet voice infrastructure, Touch America can roll out a wide variety of next-generation, IP-based voice services. For example, the company will deploy Pactolus' SIPware Prepaid Calling Card and SIPware Calling Card applications. These feature-rich solutions offer subscribers a range of benefits, including a self-service Web portal for service customization. Touch America also will integrate Voyant Technologies' ReadiVoice IP collaborative voice conferencing solution into its IP platform. ReadiVoice IP offers a totally automated solution, where customers can initiate conference calls 24 hours a day, seven days a week, without having to make reservations or contact operators.

About Touch America

Touch America is a national broadband fiber-optic and regional wireless telecommunications company, providing customized voice, data and video transport, as well as Internet services, to wholesale and business customers. Branded TOUCHAMERICA, the company's fiber-optic network will be 26,000 miles by year-end, making it one of the largest and highest capacity long haul networks in the U.S. The company provides the latest in IP, ATM and Frame Relay protocols and private line services to transport data with speed, privacy and convenience. TOUCHAMERICA will transition from a wholly owned telecommunications subsidiary of the Montana Power Company (NYSE: MTP) to a stand-alone telecom corporation, Touch America Holdings, Inc. This year TOUCHAMERICA focus and growth strategies are broadband fiber-optic and wireless spectrum services backed by 24 x 7 customer support. More information can be found at www.tamerica.com.

About Sonus Networks

Sonus Networks, Inc., is a leading provider of packet voice infrastructure products for the new public network. With its Open Services Architecture (OSA), Sonus delivers end-to-end solutions addressing a full range of carrier applications, including trunking, residential access and Centrex, tandem switching, and IP voice termination, as well as enhanced services. Sonus' award-winning voice infrastructure solutions, including media gateways, softswitches and network management systems, are deployed in service provider networks worldwide. Sonus, founded in 1997, is headquartered in Westford, Massachusetts. Additional information on Sonus is available at http://www.sonusnet.com.

This release may contain projections or other forward-looking statements regarding future events or the future financial performance of the respective companies that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. Readers are referred to the respective companies' Annual and Quarterly Reports on Forms 10-K and 10-Q, respectively, filed with the SEC, which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements. 

GSX9000, PSX6000, SGX2000, Sonus Insight and Open Services Architecture are trademarks of Sonus Networks. All other company and product names may be trademarks of the respective companies with which they are associated.