Fonality^® a leading open source telephony company, today announced that Matrix Business Technologies, a U.S.-based telecom services provider, is the first provider in its industry to adopt the Fonality Managed Services Partner (MSP) model by selecting Fonality's award winning PBXtra^™ solution. This Matrix-managed PBX phone system is the first of its kind to complement the existing portfolio of voice and data services currently enjoyed by Matrix's small to medium business (SMB) customers.

For more than 15 years, Matrix Business Technologies, a Platinum Equity company, has specialized in providing a wide range of voice and data services specifically targeted to enterprises with 10-100 employees, and currently has more than 35,000 business customers. Fonality's PBXtra business phone system gives MSPs a managed voice offering to complement their existing network services (Analog, Digital PRI or SIP). Together, Fonality and Matrix are offering an out-of-the box voice solution and providing customers with a single source for a T-1 line and phone system, with absolutely no upfront customer costs.

Fonality's award-winning PBXtra phone system coupled with Matrix's current T-1 Velocity voice and data offering will provide a complete communication system, including a 24x7 network center and account management services. This hybrid-hosted phone system, powered by Fonality's PBXtra, is Matrix's only managed IP PBX solution and is supported 24x7, thus fulfilling the request of SMBs to only have one support line. Matrix customers will be able to choose from all of Fonality's award-winning PBXtra offerings: PBXtra, PBXtra Professional or PBXtra Call Center Edition, as well as its Heads Up Display (HUD^®) application.

"More and more SMBs are clamoring to get their hands on a high-quality, value-priced phone system," said Chris Vuillaume, vice president of business development and channel at Fonality. "By partnering with Matrix we are making it even easier for businesses throughout the U.S. to have access to just that. Now Matrix customers only have to make one stop for everything related to their communication needs, from the T-1 line to the phone; plus everything is under one monthly bill with a single point of contact."

Fonality's Managed Services Program (FMSP) targets both telecom and IT/data service providers and addresses the growing demand for managed turnkey solutions in the SMB market. PBXtra's patent-pending hybrid-hosted architecture allows for easy integration into current managed service models while providing enterprise class IP PBX features and a low total cost of ownership. Fonality's three-tier program scales easily depending on the goals and operational capabilities of the MSP, and PBXtra integrates into their infrastructure with no impact on existing network components.

"Money in the bank matters most to SMB decision makers," said Russ Lambert, CEO of Matrix Business Technologies. "Typically, our customers expect to pay a significant upfront fee for servers, handsets, configuration and circuit installs, plus fees to a VAR to coordinate all of it. The Matrix-Managed/Fonality-powered phone system eliminates the need to empty the vault in order to have a voice- and data-connected, fully managed, easily installed, feature-rich, on-premises phone system. It's an incredible value at an aggressive monthly price," he added.

PBXtra complements a MSP's voice and data services with its improved ease-of-use for an enterprise-class product at 40 to 80 percent less than the cost of comparable systems from established PBX vendors. Out of the box, PBXtra supports advanced auto-attendant features, telecommuters, branch offices, drag and drop call controls, conferencing and cross-office intercoms, as well as a host of other easy-to-use advanced features.

For more information about the Fonality Managed Services Program please visit www.fonality.com/msp

Pricing and Availability The Matrix managed PBX system, powered by Fonality, will be available for limited distribution in June 2007, with general availability in early Q3. Inquire about Matrix by visiting www.matrixbt.com or calling 1-866-728-7490.

About Fonality:

Fonality, www.fonality.com, is a leader in open source, Asterisk-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium-sized businesses, includes a modified version of the popular open source Asterisk code base. Fonality has modified Asterisk to add reliability, stability and enterprise-class features, and is the world's largest commercial Asterisk-based deployment. PBXtra uses Fonality's patent pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 to 80 percent less than traditional offerings, and is deployed at more than 2,000 companies around the world. Fonality's trixbox ^™, www.trixbox.org, the world's largest and fastest growing community of users of Asterisk-based software with an average of 75,000 downloads a month, provides a free, easy to install Asterisk-based VoIP phone system.

About Matrix Business Technologies:

Matrix Business Technologies, www.matrixbt.com, a Platinum Equity company, is a recognized leader in the telecommunications industry, serving small, medium and large-size businesses throughout the United States. As an Integrated Communications Provider, Matrix offers a portfolio of services including: local, 1+ long distance and toll-free voice services, web/audio conferencing and a wide range of data services, such as dedicated Internet access, MPLS IPVPN, frame relay and point-to-point.

Matrix provides the Power of One: one carrier to bundle services, one consolidated invoice and one point of contact, which is why so many companies choose Matrix as their service provider.

Fonality, HUD and trixbox are registered trademarks and PBXtra is a trademark of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality and PBXtra are not affiliated with, nor endorsed by, Digium Inc.