The Company

Pervasip is a new generation communications company providing wholesale Voice over Internet Protocol (VoIP) services. Pervasip is focusing current and future resources on the growth of its wholly owned subsidiary, VoX Communications. Using its own nationwide VoIP network, VoX offers scalable and reliable broadband voice, origination and termination services to cable, wireless and wireline operators, as well as enhanced VoIP telephone service to the small business and residential marketplaces. VoX's proprietary IP platform enables superior quality and service at very low fixed costs, which is expected to translate into a faster break even threshold as the Company capitalizes on accelerating market demand for its VoIP services.

The Technology

VoX has pioneered a Linux-based "server farm" approach to VoIP, similar to Google's search engine technology. The result is a predictable platform that is easily and cost-effectively scaled as the business grows. Management believes that this platform, together with the latest VoIP signaling protocol (SIP) and enhanced compression voice standard (G.729), processes the smallest packets of information possible both quickly and efficiently.

Low Fixed Costs

• VoX's network equipment cost per subscriber is less than $10
• VoX has the ability to scale its softswitch architecture in relatively small capital increments. $100,000 in additional equipment is a standard purchase to add additional capacity of 10,000 lines.
• VoX pays no software license fees, as it owns its technology.
• The rental costs of a colo facility and the IP circuits in and out of the facility are inexpensive.

VoX service is capable of being deployed and customized for each customer, remotely from a central location. Since the platform is proprietary, all VoIP features are controlled by VoX instead of a software vendor which enables faster response to the needs of wholesale customers and offers an uncommon level of automation with tight integration between the billing system, the provisioning system and the softswitch. This innovative and sensible approach to VoIP won the Company Internet Telephony Magazine's "Most Innovative VoIP Technology Provider Award" in 2005.

How VoX Works

VoX provides its customers with an Analog Telephone Adapter ("ATA") that enables them to make and receive phone calls through the Internet. Spoken words are converted into packets of data, sent out over the Internet through a broadband connection, and reassembled at the other end of the line. The VoX adapter is placed between the customer's computer and their cable or DSL modem. A standard telephone may be plugged into the adapter and used to place and receive calls in the same way calls are placed or received with traditional phone service providers.

In lieu of an ATA, VoX also supports a variety of other Internet telephone devices, such as an IP phone, that have a built-in ATA, or a WiFi phone, that uses a WiFi network to connect to the Internet to place and receive calls.

Competition

VoX differentiates itself from competitors by the quality and reliability of its network, its service features and its wholesale focus. Currently, VoX is one of the few VoIP carriers that can offer a competitive wholesale alternative to carriers and other service providers wishing to private label a VoIP service. Specifically, the Company targets providers with established customer bases that would benefit from a bundled offering. For example, there are 1100+ independent cable providers. Due to a lack of telecom experience and minimal VoIP know-how, many of these companies will have to associate with a provider like VoX to deliver a digital phone solution before their captive customers are targeted by other providers.

This wholesale focus is critical to VoX's strategy. Retail-centric VoIP providers are paying exorbitant customer acquisition costs to attract broadband subscribers to their service. A VoX wholesale customer incurs significantly less marketing costs when selling VoIP to an existing base of loyal customers. Retail-based VoIP companies have reported that their average monthly cost to service a VoIP customer is a little more than $7.50, yet their average acquisition cost per customer exceeds $300. VoX believes its strategy is smarter.

By enabling broadband carriers to sell VoIP and by choosing specific geographical areas where VoX has the advantage in selling retail services, the Company can find pockets of opportunity where it can acquire customers without expensive marketing costs. VoX is testing two of the largest cable carriers in the US because within their own customer base, these carriers have pockets of customers that cannot be reached with the standard non-SIP VoIP solution. The IP-based offering has minimal start-up costs and can reach every one of the cable carriers' customers. Management believes that the faster path to profitability will come to the VoIP carrier who manages and controls customer acquisition costs.

Management

Paul H. Riss - Chairman and CEO

As Pervasip Chairman and CEO, Paul Riss leads the business development activities and is accountable for strategic planning and management of all financial operations. He has served on the board of four CLECs and has more than 20 years of entrepreneurial business and management experience including the engineering of his own leveraged buyout in 1987 and the audit of numerous public companies at Ernst & Young.

Riss was the 2000 - 2001 recipient of the James P. Kelly Award for distinguished public service from the Westchester Chapter of the New York State Society of Certified Public Accountants. He was also a finalist in 2001 for Ernst & Young's Entrepreneur of the Year award for companies in Southern Connecticut and New York's Hudson Valley.

He is a CPA in New York State and earned an MBA with distinction from the Stern School of Business at New York University and a magna cum laude BA with distinction from Carleton College. Riss is a member of the AICPA and the NYSSCPAs. He also serves on a local project committee for Habitat for Humanity and his local church council.

Mark Richards - Chief Information Officer

Mark Richards is responsible for designing, building, operating and growing VoX's VoIP platform and services. Richards has more than 20 years domestic and international experience working in senior management positions for Fortune 500 and emerging companies. He has managed all aspects of telecommunications and information technology companies, including leading businesses through successful capital funding and dramatic increases in profitability and cash flow.

Previously, Richards was the COO of VoIP carrier, Volo Communications. He also served as acting CEO for Epicus Communications, where he led the company to profitability and strong growth. Prior to that, he held executive positions with a variety of CLEC and telecom start-ups, including NET-Tel, TCCF, and American Network Exchange. Richards also served as a consultant to numerous Fortune 500 companies in the U.S. and abroad, including Citibank Card Services, CitiCorp Karten Services, Citibank London, D.G. Durham London, B.P. UK, and Citibank Japan.

Ron Harden - EVP Sales and Marketing

Ron Harden has more than 30 years domestic and international experience in the areas of sales and marketing, engineering, business development, and strategic planning. He joined VoX from Volo Communications, where he was executive vice president, responsible for sales, marketing, and business development. Prior to that, Harden was director and chief operating officer at PointOne Telecommunications, Inc., a leading VoIP and data services to the wholesale and enterprise markets.

A recognized leader in the telecommunications industry, Harden previously worked with four other prominent telecom organizations: Williams Communications, WorldCom Inc., Grande Communications, and the original WilTel, where he had varied executive management responsibilities in sales and marketing for both the wholesale and retail channels. Harden has served on the ASCENT board of directors for 6 years, most recently as chairman. He also recently served as chairman of the CompTel / Ascent Alliance board of directors.

He holds a Bachelor of Science degree in Mechanical Engineering and a Master of Business Administration, both from the University of Wisconsin.

Pervasip

VoX Communications Corp.

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