Ditech Networks to Deliver Voicemail-to-Text Service for Microsoft Exchange 2010 Unified Messaging Solution

MOUNTAIN VIEW, Calif. - (BUSINESS WIRE) - Ditech Networks (NASDAQ: DITC), a global leader in voice processing solutions, today announced that its PhoneTag voicemail-to-text has been chosen as a integrated option on Microsoft Exchange Unified Messaging 2010 product. PhoneTag allows business users to save time by reading transcribed voicemails within their email rather than spending time listening to them.

Ditech's PhoneTag service will be included in the Microsoft 2010 Unified Messaging product through Microsoft's Voice Mail Preview Partnership. Microsoft's Exchange Unified Messaging product works in conjunction with Microsoft's Office Communication Server product to provide unified voice and e-mail messaging as well as, calendaring, contacts and tasks; support for mobile and web-based access to information, and more. As part of the enhanced 2010 feature set, Ditech's PhoneTag service will automatically transcribe new voice messages to text and send them directly to the user's inbox as an email attachment.

PhoneTag is a cloud service that uses a proprietary system to deliver highly accurate transcribed voicemail messages. Since launching the service, PhoneTag has received numerous awards including the highest transcription quality by Information Week, two coveted Four Star Ratings from PC Magazine and Laptop Magazine's Editor's Choice Award. PhoneTag users also receive security and confidentiality of their voicemail through a complex process which insures privacy for its users.

"Voicemails in their current form are just trapped information, forcing the recipient to manually retrieve them," said Karl Brown, vice president of Marketing at Ditech Networks. "By integrating PhoneTag's voice-to-text service into the upcoming Microsoft Exchange, end-users will now have an option to access the information in the same seamless way they currently do with email."

About Ditech Networks

Ditech Networks is revolutionizing modern communications with advanced voice processing solutions and voice applications that offer network and speech quality enhancement, voice call control, speech-powered web access, voice-to-text services, and more. Ditech believes in the power and simplicity of human speech. Its technology is designed to deliver compelling voice capabilities to emerging forms of communication like social networking and text messaging, allowing consumers to use voice in ways that make sense in today's Web 2.0-savvy world.

Leveraging over 20 years of deployments with communications providers around the world, Ditech offers unique, effective products and services that put the subscriber's experience first, assisting carriers with revenue generation, service differentiation, network expansion and call capacity. Ditech's customers include Verizon, Sprint/Nextel, Orascom Telecom, AT&T, China Unicom, Global Crossing and West Corporation. Ditech Networks is headquartered in Mountain View, California. For more information, visit www.ditechnetworks.com.

Forward Looking Statement

This press release contains forward-looking statements regarding Ditech Networks' expectations of the capabilities of and the benefits from using PhoneTag in conjunction with Microsoft Exchange 2010 Unified Messaging Service and the timing of sales of these products. Actual performance of PhoneTag could differ materially as a result of unanticipated factors and events, including that Ditech Networks could face unforeseen difficulties in integrating PhoneTag with Microsoft Exchange 2010. Further risks inherent in Ditech Networks' business are detailed in the section entitled "Future Growth and Operating Results Subject to Risk" in Ditech Networks' Quarterly on Form 10-Q for the quarter ended July 31, 2009 (filed September 2, 2009 with the Securities and Exchange Commission).

Ditech Networks and Voice Quality Assurance are trademarks or registered trademarks of Ditech Networks, Inc. All other trademarks are the property of their respective owners.

Ditech Networks
Rob Adler, 415-984-1970 (Press)
Bill Tamblyn, 650-623-1309 (Investors)