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Filed by ITXC Corp.
Pursuant to Rule 425 under the
Securities Act of 1933 and deemed
filed pursuant to Rule 14a-12 of the
Securities Act of 1934
Subject Company: ITXC Corp.
Commission File No.: 333-44248
Contact
Jennifer Cannell
ITXC Corp
+1.609.750.3276
[email protected]
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ITXC Traffic for Labor Day Weekend More Than Five Times Greater Than 1999
Carrier Sees Acceleration in Migration of Voice to the Internet as Tier One
Carriers and RBOCs Join the Wholesale Customer Mix
For immediate release, September 5, 2000 - Princeton, NJ - ITXC Corp(R) (NASDAQ:
ITXC) reported that its network, ITXC.net(TM), carried 10,858,000 minutes of
voice traffic over the three day Labor Day weekend, 552% of the 1,965,000
minutes carried on the network during the same holiday in 1999. ITXC.net is the
largest Internet telephony network in the world with 273 IP points of presence
in 155 cities and 63 countries as of Sept. 1, 2000. ITXC is the largest
wholesaler of Internet telephony and reported revenues of over $18.7 million
dollars for the quarter ended June 30, 2000.
"We believe all voice traffic will be on the Internet by 2010 just as all email
is today," said ITXC Chairman and CEO Tom Evslin. "The trend is accelerating and
will, I believe, continue to accelerate until the migration is complete. This
migration is bad news for carriers dependent on the legacy international phone
network who are suffering from both declining market share and declining
margins; it can be good news for carriers, like our customers, who are quick to
take advantage of Internet telephony. The migration is great news for the
Internet telephony industry which has both increasing gross margins and market
share. ITXC has reported a gross margin profit since the final quarter of
1999."
Evslin attributes the increase in ITXC's traffic since last Labor Day to four
factors:
1. Growth in capacity and reach of ITXC.net;
2. Increased phone-to-phone traffic from major carriers (thirteen of the
fourteen largest international carriers in the US, many competitive
carriers in Europe, and thirteen PTTs worldwide are under contract to send
traffic over ITXC.net);
3. Increased phone-to-phone traffic from US RBOCs (RBOCs are increasingly
allowed to originate long distance and international calls and have no
legacy international networks to protect);
4. Increased web-to-phone traffic from web portals.
Typically callers are not aware that their phone-to-phone calls are being routed
over the Internet; this is a routing choice made by their carriers who use
ITXC.net to reduce costs while maintaining the quality their customers expect.
ITXC uses its patent-pending BestValue Routing(TM) technology to achieve
carrier-grade quality with Internet economics.
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"Most of our traffic now comes from major carriers, PTTs, and RBOCs," said
Evslin. "The quality of service we provide makes it possible for them to take
advantage of Internet economics. The highly competitive markets they serve make
it necessary for them to do so."
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About ITXC Corp:
ITXC Corp (www.itxc.com) is the service providers' service provider for voice on
the Internet. ITXC WWeXchange Service(R) provides phone-to-phone wholesale call
completion for carriers and resellers. Thirteen out of the top fourteen U.S.-
based international carriers, leading European competitive carriers, and
thirteen PTTs worldwide have contracted to send their traffic over ITXC.net.
ITXC webtalkNOW! Service(SM) enables portals, ISPs, and communications web sites
to offer PC-to-phone calling to their customers under their own brands. Both
services provide high quality over the public Internet by routing calls on
ITXC.net, which is the largest Internet telephony network in the world with 273
points of presence in over 155 cities and 63 countries. Announced carrier
affiliates include Ameritech, Bell Atlantic, Cable & Wireless Optus, China
Telecom, Interoute, Jitong, Justice, Korea Telecom, PLDT, Telstra, and TRICOM.
There are already more than ten announced and unannounced wholesale customers
for webtalkNOW!.
Forward looking statements: ITXC may not meet the projections reflected in its
forward looking statements due to numerous risks and uncertainties, including,
among other factors, the volatile and competitive environment for Internet
telephony, changes in domestic and foreign economic, market and regulatory
conditions and other risks detailed in ITXC's reports filed from time to time
with the SEC.
ITXC Corp and WWeXchange are registered trademarks. ITXC.net, BestValue Routing,
and ITXC webtalkNOW! are trademarks and service marks of ITXC Corp. All other
trademarks mentioned in this document are the property of their respective
owners.
ITXC CORP. HAS FILED A REGISTRATION STATEMENT ON SEC FORM S-4 (COMMISSION FILE
NO. 333-44248) IN CONNECTION WITH THE ACQUISITION OF A PRIVATELY-HELD COMPANY,
EFUSION, INC., AND THE PARTIES EXPECT TO MAIL A PROXY STATEMENT/PROSPECTUS TO
THEIR SHAREHOLDERS CONTAINING INFORMATION ABOUT THE MERGER. INVESTORS AND
SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY
STATEMENT/PROSPECTUS CAREFULLY WHEN THEY ARE AVAILABLE. THE REGISTRATION
STATEMENT AND THE PROXY STATEMENT/PROSPECTUS WILL CONTAIN IMPORTANT INFORMATION
ABOUT ITXC, EFUSION, THE MERGER AND RELATED MATTERS. INVESTORS AND SECURITY
HOLDERS WILL BE ABLE TO OBTAIN FREE COPIES OF THESE DOCUMENTS THROUGH THE WEB
SITE MAINTAINED BY THE U.S. SECURITIES AND EXCHANGE COMMISSION AT
HTTP://WWW.SEC.GOV. IN ADDITION TO THE REGISTRATION STATEMENT AND THE PROXY
STATEMENT/PROSPECTUS, ITXC FILES ANNUAL, QUARTERLY AND SPECIAL REPORTS, PROXY
STATEMENTS AND OTHER INFORMATION WITH THE SECURITIES AND EXCHANGE COMMISSION.
YOU MAY READ AND COPY ANY REPORTS, STATEMENTS AND OTHER INFORMATION FILED BY
ITXC AT THE SEC PUBLIC REFERENCE ROOMS AT 450 FIFTH STREET, N.W., WASHINGTON,
D.C. 20549 OR AT THE COMMISSION'S OTHER PUBLIC REFERENCE ROOMS IN
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NEW YORK, NEW YORK AND CHICAGO, ILLINOIS. PLEASE CALL THE COMMISSION AT
1-800-SEC-0330 FOR FURTHER INFORMATION ON PUBLIC REFERENCE ROOMS. ITXC'S FILINGS
WITH THE COMMISSION ALSO ARE AVAILABLE TO THE PUBLIC FROM COMMERCIAL
DOCUMENT-RETRIEVAL SERVICES AND AT THE WEB SITE MAINTAINED BY THE COMMISSION AT
HTTP://WWW.SEC.GOV.
EFUSION, ITS DIRECTORS, EXECUTIVE OFFICERS AND CERTAIN MEMBERS OF MANAGEMENT
AND EMPLOYEES MAY BE SOLICITING PROXIES FROM EFUSION'S STOCKHOLDERS IN FAVOR OF
THE ADOPTION OF THE MERGER AGREEMENT. A DESCRIPTION OF ANY INTERESTS THAT
EFUSION'S DIRECTORS AND EXECUTIVE OFFICERS HAVE IN THE MERGER WILL BE AVAILABLE
IN THE PROXY STATEMENT/PROSPECTUS.
ITXC, ITS DIRECTORS, EXECUTIVE OFFICERS AND CERTAIN MEMBERS OF MANAGEMENT AND
EMPLOYEES MAY BE SOLICITING PROXIES FROM ITXC'S STOCKHOLDERS IN FAVOR OF THE
TRANSACTION. A DESCRIPTION OF ANY INTERESTS THAT IXTC'S DIRECTORS AND EXECUTIVE
OFFICERS HAVE IN THE MERGER WILL BE AVAILABLE IN THE PROXY STATEMENT/PROSPECTUS.
