Citel Signs Expanded Supply Agreement with Global Service Provider

New Supply Agreement Covers Both SIP Handset Gateway and EXTender Product Line to Enable Rapid, Affordable VoIP Migration

SEATTLE - September 14, 2006 – Citel, The VoIP Migration Company™ (LSE AIM: CITE.L), today announced that it has signed an expanded supply agreement with one of the largest telecommunications companies in the world. The new agreement includes Citel's SIP Handset Gateway product line as well as Citel's PBXgateway™ and EXTender™ product lines. The breadth of products enables this global service provider to offer enterprises a variety of ways to manage their migration to VoIP telephony, while leveraging current PBX infrastructure investments.

Citel's SIP Handset Gateway enables businesses to migrate to either a hosted or premise-based IP-PBX while retaining their existing PBX desktop handsets, wiring and LAN infrastructure, avoiding costly network upgrades, business disruption and user retraining, while still obtaining the feature and cost benefits of VoIP. Citel's EXTender product line enables enterprises to distribute the services and applications of a central PBX to remote locations over an IP connection, creating a unified voice platform across a city or around the globe.

Michael Robinson, CEO of Citel said: "The addition of the SIP Handset Gateway to the product line of one of telecom's best known brands is an exciting step forward for Citel. As legacy PBX infrastructure is often one of the key inhibitors to enterprises' migration to IP telephony, this addition offers a compelling way for enterprises to migrate to hosted or premise VoIP, even if their existing PBX is still within its useful life."

About Citel plc

Citel enables SMBs, large enterprises and service providers to realize the cost and productivity benefits of IP telephony while at the same time leveraging their existing PBX infrastructure. Businesses with single or distributed locations and PBX vendors can now deploy next-generation IP applications and services at their own pace, with little business disruption. Service providers can deploy hosted IP telephony services quickly, without having to rip-and-replace existing enterprise PBX handsets and LAN cabling. Citel is a publicly traded company with corporate headquarters in Seattle, and development offices in Calgary, Alberta (Canada) and Nottingham, England (UK). For more information, visit www.citel.com.

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