Telenity and HERMES SoftLab to Deliver Canvas SMS Router/Gateway to BH Telecom

Sarajevo, Bosnia and Herzegovina and Monroe, CT - April 11, 2006 - HERMES SoftLab Sarajevo signed a contract with BH Telecom to implement Telenity's Canvas SMS Router/Gateway, to enable BH Telecom to enhance their SMS traffic capacity while optimizing their operational costs. This is the second project to be delivered by HERMES SoftLab to BH Telecom together with its partner Telenity, a leading provider of next generation converged services platforms and applications for communications networks. Under the agreement, HERMES SoftLab will be delivering Telenity's Canvas SMS Router / Gateway to BH Telecom.

As SMS has become an important revenue-generating service and it remains in constant usage growth, operators need to look at ways to optimize the management of the traffic and the capacity of their infrastructure. Telenity's Canvas SMS Router/Gateway will enable BH Telecom to improve the distribution of incoming SMS messages by delivering the traffic directly to mobile subscribers or applications (e.g. voting services, infotainment services). In the traditional approach all incoming messages are sent to the SMS Center from where they are distributed to users and applications. The Canvas SMS Router/Gateway routes the traffic to the SMS Center only in case of undeliverable messages (when the targeted user or application are not available) which greatly improves the usage of existing SMS Centers. A beneficial consequence is the offload of the application traffic which significantly reduces the overall operational costs of SMS infrastructure.

With a proven track record in the area of Value Added Services Infrastructure, HERMES SoftLab is delivering Telenity's Canvas SMS Router/Gateway solution to BH Telecom covering the systems integration, project management and providing first line support and delivery through HERMES SoftLab's local subsidiary in Sarajevo.

“We have selected HERMES SoftLab and Telenity's Canvas SMS Router/Gateway because of their ability to match our needs and their track record in the telecom industry in general, but in particular due to the successful cooperation that we already have with them for Canvas MMSC, Multimedia Messaging Service Center . A key advantage is also having the HERMES SoftLab local team very close to our operations, and we look forward to working with them in this project,” said Mr. Hamdo Katica, CEO of BH Telecom.

“This project represents the consolidation of our relationship with BH Telecom, they are a key customer for us and enhances our existing partnership with Telenity. This also shows the transformation of HERMES SoftLab into a solution provider able to efficiently respond to customer needs by relying on our industry expertise and partner portfolio, ” said Mr. Peter Testen, CEO and President of the Managing Board of HERMES SoftLab.

“Our Canvas SMS Router/Gateway will provide a capacity enhancement of up to 1,000 short messages per second and will enable BH Telecom to support peak hour traffic that is generated by enhanced SMS-based services,” said Serif Beykoz, General Manager at Telenity Europe. “BH Telecom has consistently been one of the most profitable mobile operators in the country and, in effect, its selection of the Canvas SMS Router/Gateway further underscores that Canvas Converged Messaging solutions are the right product choice to increase ARPU and reduce churn while at the same time making use of existing messaging investments.”

About BH Telecom
BH Telecom, Joint Stock Company, Sarajevo is a state owned operator with 10% public share. It is the number one GSM operator in Bosnia Herzegovina with 52% market share and serving 750,000 mobile subscribers of which 15% are postpaid. BH Telecom has deployed GPRS and EDGE technologies and has plans to implement WiFi technology with US TDA. BH Telecom also addresses 51% of the fixed-line market and serves 530,000 subscribers in the country. BH Telecom is an ISP with 50,000 subscribers ADSL service which is expected to grow to 10,000 lines in 2005. With this growth, BH Telecom is positioned to stay the leading operator in Bosnia and Herzegovina. www.bhtelecom.ba

About HERMES SoftLab Sarajevo
Established in 1996 as one of the first foreign investments in Bosnia and Herzegovina after the Dayton agreement HERMES SoftLab Sarajevo is a subsidiary of HERMES SoftLab d.d. with 60 employed experts HERMES SoftLab Sarajevo is today one of the biggest software and IT solutions development companies in BIH. HERMES SoftLab Sarajevo holds an ISO 9001 9001:2000 TickIT management system certificate granted by British Standards Institute (BSI).

About Telenity
Telenity is a leading provider of next generation converged services platforms and applications for communications networks. Telenity's IMS compliant converged services solutions include: reusable service delivery and content components enabling rapid service creation, deployment and execution functionalities across multiple services and applications; location and presence servers; integrated messaging solutions; and value added services. Telenity's worldwide customer base includes network operators, service providers and application providers serving over 100 million subscribers. Telenity partners with global and regional network equipment providers, system integrators and computing platform manufacturers. Learn more about Telenity's Canvas family of converged services solutions at www.telenity.com and download a copy of Telenity's online newsletter Telescope.

Visit Telenity at:

• Mobile Location Services 2006, May 17-18, Amsterdam, The Netherlands
• Global Messaging 2006, May 24-25, London, United Kingdom

Telenity and Canvas are trademarks of Telenity.

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