Tel Aviv ----November 19......The following is an interview between InformationWeek Israel and SMS software provider David Eshet, the CEO of CallUp Unified Messaging Services. CallUp supplies SMS, MMS and unified messaging software and hardware technology services for global ISP's and telecommunications organizations.

Eshet was asked about added value services for communications providers. "The solution immediately adds revenue for the ISP or telco operator, without adding any infrastructure."

Eshet describes CallUp. "This is an Internet messaging company that was founded in 2000 at the initiative of Pelephone and John Bryce Products in Israel. At the end of 2000, Pelephone left the company, and then we continued. Today we are part of the One1 Group, Israel third largest hi-tech and computer company. CallUp deals mainly in the field of messaging for landline and mobile carriers, including: email, MMS, SMS, added value services such as music, etc. Out main product is CCC (Call Completion Center)."

Eshet adds: "We appear to be a messaging company that deals in a commodity. The barriers to being a messaging provider are rather low, but the aspect that most such providers lack is getting into the telecommunications and ISP Internet SMS and MMS messaging markets. The communication companies avoid buying solutions from parties that do not sell to them and whose stability is doubtful. We have more than six million end customers in the world, which attests to our strength. Throughout the world, there are about 2,500 cellular carriers, and Comverse is the leader in this field. We are a rather small company - 15 people - because we outsource most of our work, take up the result in the company and market it - we have gained considerable success in the world working this way."

The CallUp CEO states that his SMS, MMS e-mail Internet messaging software company has 34 installation sites operating around the world, mainly in Asia. When asked what was unique about CallUp SMS messaging solutions in the communication content market, Eshet said: "It's rather similar to what happens in other fields. The telecommunications and ISP carriers take things that definitely yield incomes. What we do as a small company is the ability to perform dynamic customization for customers. The time between presenting the customer's requirement and application runs into days to weeks rather than months, as is the case for competitors."

The messaging software leader states: "We concentrate on outsourcing and providing service. In effect, all the company's employees are service providers. CallUp has an advantage of knowing the target market and intimate familiarity with customer needs. Companies from Europe, South America and Asia buy from us because they are impressed by our attitude to customers. CallUp is working so that our customers can make more money - this is what the customer is looking for. We also constantly assess the utilization of the licenses we sell and apply to ISP and telco customers if they do not utilize all their licenses, which makes us trustworthy. CallUp and it's Internet messaging solutions are pretty focused on the Call Completion Center or CCC solution, which is an unrivaled patent of ours".

What does the CCC solution do? "Every telecommunications company has something that is known as 'lost calls', which is 25 percent to 60 percent of all their calls. In some places in the world, such as Eastern Europe, India, Turkey, Cuba, Africa and South America the 'lost calls' rate may reach 70 percent. In monetary terms, it is an enormous loss. To earn it you do not have to do anything. You do not have to upgrade networks - just buy our messaging software. There are customers that do not get an answer from the destination, and then they redial. This causes a blocking of the network and may even crash the network in certain situations, such as after a terrorist attack or disaster."

Eshet continues: "In addition to this, 25 percent of calls that get lost when the dialers reach the destination's voice mailbox. The caller passes the ball to the recipient, whether to hear the message or call back. A communication provider with a million customers, which would be a medium sized supplier, loses at least six million dollars a month, if I were to take a very low ARPU. If the ARPU is high, the loss of course will be much higher. We give the customer a comprehensive solution to this problem. The main product is called On-Q, which is a patent that says the following: if you want to leave a voice message, leave one. But if you want to contact the other side, you will be connected when it is possible. All the parameters may be controlled: for example, when the system creates this connection between the parties. This way, lost calls become existing calls."

On-Q is a service that CallUp developed both for landline and mobile telecommunications carriers. The landline service has other options that we are currently introducing into the system. We are developing this application in the direction of voice identification, and there are other developments, including additional engines that we are introducing into these services. This solution contains a number of components that the customer incorporates into the custom solution, for example email or SMS messages, which are sent in the case of a missed call. From the moment of our presenting the solution to carriers, the demand for this solution started, and it immediately grants the carrier revenues without adding any infrastructures.

Where is this market developing to? "The field of applications for the cellular market is experiencing a surge of development," says Eshet. "The question is how can a new application be brought to the mass market. The direction is that a provider will want to provide these capabilities for the cellular handsets themselves. NTT DoCoMO, for example, has thousands of content providers, because it is an open-ended system. The communication providers wish to work with us because we develop rapidly - we have come from the cellular world and we understand them."

Eshet concludes: "Today there is great demand for attendance services. Another high demand services is polling services, mainly involving mass polls. This is implemented mainly by SMS. We are very strong in markets such as India, where there has been a dramatic increase in the number of customers. We have been a profitable company from the onset, and apart from the initial investment in initial setup and development, we have been profitable throughout our operation. We are thinking of integrating Skype into the system - we are currently thinking about it".

CallUp Net is one of the world's leading messaging software providers which designs scalable, reliable, creative, sophisticated and low-cost SMS, VAS, and MMS messaging software systems specifically for telecommunications carriers. CallUp is respected for its messaging software and hardware which is based on open telco architecture that leverages existing Internet and telephony infrastructures.

While leading market vendors offer bulky and costly software equipment have patchwork solutions, CallUp Net SMS, VAS, and MMS messaging solutions software and hardware offers an elegant application that focuses fully on the needs of telecommunication landline and wireless operators.

The CallUp MessageCase TM messaging software is designed with VAS modular features such as SMS, VAS, and MMS and can be easily upgraded to suit telecommunication mobile and fixed line (land line) operator needs. The MessageCase TM VAS messaging platform will increase subscriber base and offer a significant revenue-generating tool for telecom carriers. The basic building block of the MessageCaseTM system is voicemail. VoiceCase enables the use of all the familiar functions subscribers are used to - record greetings, reply (boomerang) to the sender, erase, skip etc.

In addition there are more advanced voice features for more sophisticated users. MessageCaseTM UMCase Service The MessageCase Unified Messaging service provides the subscriber with Unified message box for voice, Fax and email messages which can be accessed any time any where. Subscribers may update user profile, redirect, forward and broadcast messages (to definable groups), listen to voice messages (as WAV attachments), view faxes on screen, etc. The users define where they would like their emails delivered, thus enabling them to continue using their existing e-mail accounts and software (such as Outlook or Hotmail) seamlessly e-mails which are sent to the box can be rendered via Text To Speech, in multiple languages.

The user can reply to emails with a voice message - the message is attached as a WAV file and delivered back to the sender. Faxes which are sent to the box can be redirected to a nearby fax. Emails can also be voice forwarded to a fax and printed in hard copy. MessageCaseTM also supports e-mail to SMS. Aside from forwarding fax attachments to a fax of choice for printing, the FaxCase service enables Fax messages to be forwarded as email attachments thus providing an effective E-Fax service. The simple MessageCaseTM software solution utilizes a standard messaging system components, providing telecom carriers and operators with a reliable SMS, VAS, and MMS solution that reduces substantially both capital expenditures (CAPEX) and operating, administration and maintenance costs (OA&M).

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