BroadSoft

BroadSoft Closes $19.5 Million In Series C Financing

For a Total of $47 Million in Financing to Date, Series C Investment Expected to Fund BroadSoft to Cash-flow Positive

GAITHERSBURG, MD, January 30, 2002 - BroadSoft, Inc., the leader in voice applications and servers, today announced that it has closed a third round of funding totaling $19.5 million. With the closing of its Series C round, the company has received a total of $47 million in financing since May 1999. BroadSoft expects that the combination of this investment plus its revenue will take the company to cash-flow positive.

BroadSoft will use this funding to strengthen its market traction, further advance its international sales strategy, and solidify its market leadership in voice applications and servers. BroadSoft has the largest number of customers in its space and is well positioned to become the de facto standard for delivering voice applications. BroadSoft has announced five customers to date: TalkingNets, Exario Networks, bConvergent, Masergy Communications, and Percipia.

This latest round includes investments from all of BroadSoft's current investors: Bessemer Venture Partners, Charles River Ventures, Columbia Capital LLC, and Crescendo Ventures, as well as a new strategic investor, Tekelec, a leading developer of signaling infrastructure and softswitch-based voice and data solutions. Tekelec's investment reinforces BroadSoft's strategy of creating strong partnerships with leading infrastructure providers to offer a complete enhanced packet-based IP telephony solution.

"The benefits and cost savings associated with voice applications and servers is too compelling for service providers or enterprise users to ignore, " said Christine Heckart, President of TeleChoice, a leading communications consultancy. "BroadSoft has consistently played a leadership role in driving the deployment of enhanced telephony services, and the customer interest they are receiving around the world is validation of their value."

"We are pleased to participate in BroadSoft's most recent round of funding as a strategic corporate investor," said Michael Margolis, President and CEO, Tekelec. "Our investment in BroadSoft and partnership with the company are part of our overall strategy of collaborating with leading vendors to offer our customers a comprehensive range of packet telephony solutions. BroadSoft's rich feature set and commitment to innovation position the company to be a leader in the applications market."

BroadWorks is the industry's first complete set of voice applications and servers designed to enable service providers to deliver basic and enhanced voice services to enterprises of any size. The BroadWorks product family provides support for media-oriented applications such as voice mail, conferencing, and auto attendant as well as personal calling functions such as selective call forwarding and notification, call transfer, and simultaneous ringing. In addition to the comprehensive set of services, BroadWorks empowers service providers and enterprise administrators with the ability to use the web to conduct administrative functions via BroadWorks' web-based portal, CommPilot. CommPilot provides an alternative user interface for enhanced services, replacing the cumbersome flash-hook and star codes of a standard phone. For administration, patent-pending CommPilot provides multiple tiers of intuitive, easy-to-use web interfaces that simplify configuration and management of services for the end-user, group administrator, and service provider.

"The continued support of our blue-chip investors, coupled with the addition of a strategic investor, especially in this tumultuous market, is proof of the strong belief in BroadSoft, our team, business plan, and our products," said Michael Tessler, co-founder, president and CEO of BroadSoft. "This funding represents a validation of our strategy and market acceptance. We will use these additional funds to strengthen our leadership position in offering voice applications and servers for service providers."

About BroadSoft

BroadSoft, Inc., is the leader in voice applications and servers for service providers. BroadWorks, the company's flagship product, allows service providers to rapidly and economically design and deploy web-enabled enhanced telephony services to their customers. BroadSoft has received extensive industry recognition including recognition as a "Hot Start-Up" by America's Network and Telecommunications magazines, two of the leading telecommunications industry publications. BroadWorks was also recognized as Product of the Year by Communications Solutions and Internet Telephony magazines. BroadSoft is located near Washington, DC, in Gaithersburg, Maryland, and also maintains a research and development facility in Montreal, Canada. Additional information can be found at www.broadsoft.com

BroadSoft and BroadWorks are registered trademarks of BroadSoft, Inc. All other names are trademarks of their respective owners.

BroadSoft PR Contact:

Leslie Ferry
Vice President, Marketing
+1-240-364-9038
lferry@BroadSoft.com