deltathree, Inc. (Nasdaq: DDDC), a leading provider of hosted Voice over Internet Protocol (VoIP) solutions worldwide announced that it has expanded its universe of Latin American network termination partners aimed at increasing the reach of its hosted residential VoIP Outsourced Platform Solution customers in the region. Responding to increased demand for hosted VoIP solutions in Latin America, deltathree is also actively engaging regional service providers, cable companies and ISPs in key Latin American markets including Mexico, Argentina, Colombia and Brazil. To further support deltathree\'s growth strategy in the region, the Company will be participating in The National and Andean Telecommunications Congress (Andicom) in Cartagena, Colombia, from October 24th to the 27th, 2006.

\"Our expansion in Latin America is leveraging the overwhelming interest in our hosted residential VoIP solution. The Outsourced Platform Solution enables service providers to retain their customers while enhancing their service offering,\" stated Guy Gussarsky, deltathree EVP of Sales and Business Development. \"deltathree\'s hosted solution is a highly valued and crucial offering for Latin American service providers, allowing them to focus on their marketing and sales efforts while leaving the development and deployment of their VoIP telephony product to deltathree.\"

deltathree\'s Outsourced Platform Solution enables service providers to introduce comprehensive VoIP products and services with a sharp focus on customer needs, a faster time to market and reduced capital investment. deltathree\'s expanded initiatives in Latin America, one of the world\'s fastest growing telecom markets, will strengthen deltathree\'s global VoIP network and advance IP telecom in the region. deltathree has been at the forefront of customized back-end solutions for the world\'s largest service providers and continues to set the industry standard for hosted private label VoIP solutions.