Press Release XACCT AND INFOCOM PARTNER TO INTRODUCE FLEXIBLE, CARRIER-CLASS IP BILLING SYSTEMS TO JAPANESE INTERNET SERVICE PROVIDERS

Japanese Market Deemed Ripe for Next Generation IP Services

SANTA CLARA, CA, February 15, 2000-XACCT Technologies, Inc., the leading provider of intelligent business infrastructure solutions for IP networks, and Nissho Iwai Infocom Corporation (Infocom), one of Japan's leaders in systems development and integration and software and hardware distribution, announced today that they have concluded a distribution agreement. Under the terms of the agreement, Infocom will distribute the XACCTusageTM line of solutions in the Japanese market. Additionally, the Nissho Iwai Group has invested in XACCT as part of its strategy to expand its market presence in the Asian Internet market.

As value-added services such as IP fax, IP telephony, and streaming multimedia emerge on the Internet, the traditional, flat rate billing model used for basic Internet service is becoming obsolete. Integrated Communications Providers and Internet Service Providers are quickly seeing the need to design and execute flexible pricing models for these services based on a variety of parameters beyond simple "time-on-line." The integration of XACCTusageTM with Infocom's range of software solutions for the Japanese Internet Service Provider (ISP) market will enable its customers to build their back-office infrastructure to support flexible, innovative revenue-generating programs for a wide range of current and emerging IP-based voice/video/data services.

"With the rapid spread of the Internet, ISP's feel the pressure to expand their services and billing methods in order to survive the severe market competition," said Atsushi Numa, president of Infocom. "However, until now they lacked the tools that could collect and analyze each subscriber's usage situation with high reliability within a huge multi-service network infrastructure. XACCT seized upon this need and developed software to satisfy the new trend in the Internet industry faster than any other software vendor. Based on our testing of XACCTusageTM, we have decided to bring it into the Japanese market."

"We are excited to have a market leader like Infocom introducing XACCTusageTM to the Japanese market," said XACCT's President and CEO, Eric Gries. "Now Infocom's customers will be able to increase their competitiveness and profitability by offering innovative value-added IP services such as telephony, fax, and videoconferencing with meaningful pricing options, in addition to basic Internet access. With XACCTusageTM, ISPs will be able to deploy new services quickly and without tearing down their existing back-office infrastructure."

Comprehensive Solution For Multi-service Networks XACCT's flagship product, XACCTusageTM, provides a single point of interface between the Business/Operations Support Systems (OSS/BSS) and the network infrastructure for usage data collection, automated user account provisioning, and pre-payment processing. Its multi-source, multi-layer architecture, and business policy-based record synthesis capabilities enable XACCTusageTM to extract comprehensive usage information from a multitude of network devices from all layers of the network - from the physical layer to the application layer - in real-time and synthesize that information in order to produce meaningful billing records called an XACCT Detail Records (XDR). XDRs are analogous to the Call Detail Records (CDRs) generated by the telephone switches. The XDRs are used by the Billing applications to create service-specific usage-based bills for a wide variety of IP-based services and applications, such as VoIP, Video, VPN.

By leveraging the end-to-end, automated User Account Provisioning capabilities of XACCTusageTM, service providers can implement self-care or self-registration programs and thus lower call-center costs. Automated provisioning also lets Service Providers benefit from instant service activation and revenue capture.

About XACCT Technologies Headquartered in Santa Clara, Calif., XACCT Technologies, Inc., has established itself as the market leader in the emerging IP mediation market. XACCT develops a new class of intelligent software solutions that enable Service Providers and enterprises to accurately account and bill for metered services and applications.

XACCT and its product have received the following awards and citations:

・ Data Communications magazine recognized XACCT as one of the "Top 25 Hot Startups of 1998" and named XACCTusage? as one of the "Hot Products of 1999."

・ XACCT was one of the six companies named to the "Winners Circle: Software Companies to Watch," in Telecommunications magazine's March 1999 issue.

・ XACCTusage? received "Most Innovative Billing Product" recognition at the Billing Systems '99 Conference and Exhibition in April 1999.

・ Internet Telephony magazine selected XACCTusage? as "Product of the Year" in the Billing category in its November 1999 issue.

XACCT markets its software directly and through network systems integrators to Service Providers and Fortune 1000 companies. A privately held corporation, XACCT is funded by venture capital investors. More information is available at www.xacct.com.