Verso Technologies, Inc. (Verso), incorporated in March 1984, is a global technology provider of network packet-based bundled technology solutions for service providers. These products enable customers to reduce communications costs, generate additional revenue, and secure and optimize network bandwidth. Verso focuses on softswitch, prepaid and compression technologies that optimize bandwidth and enable next-generation protocols, such as voice over Internet protocol (VoIP), as well as other advanced protocols. The Company's continuing operations include two separate business segments: the Packet-based Technologies Group, which includes the softswitch, I-Master and NetPerformer divisions, and the Advanced Applications Services Group, which includes the Company's technical applications support group. The Packet-based Technologies Group offers hardware and software, integration, applications, and technical training and support. The Advanced Applications Services Group provides outsourced technical application services, and application installation and training services to outside customers. Packet-based Technologies Group The Clarent Edge Access Softswitch solution enables traditional and alternative communications service providers to deliver residential and advanced enterprise managed services. The solution supports IP connectivity via H.323, media gateway control protocol, and session initiation protocol (SIP) for interoperability with a range of access gateways, as well as customer premise gateways (CPGs) and IP handsets. Components of this solution include Clarent Class 5 Call Manager; Clarent Class 4 Call Manager; Clarent Command Center; Clarent Element Management System; Clarent BHG Media Gateways; Clarent Border Agent; Clarent CPG, and Clarent Connect. During the year ended December 31, 2005, the Company introduced Clarent Class 5 Call Manager versions 3.3 and 3.4, which provides features, such as hotline, limiting simultaneous calls, private networking configurations, distinctive music on hold, do not disturb, anonymous call rejection, simultaneous ring, video edge device support, SIP and GR303 access gateways, topology hiding, local number portability, E911, lawful intercept, and a radius interface to authentication, authorization and accounting servers, such as I-Master. The Clarent PSTN Access Softswitch solution facilitates the migration to VoIP, allowing carriers to preserve and leverage existing telecom investments to realize lower operating costs and lower overall total cost of ownership. Components of this solution include Clarent Class 4 Call Manager; Clarent Command Center; Clarent Element Management System; Clarent SS7 Signaling; Clarent BHG Media Gateways, and Clarent Connect. In 2005, the Company introduced Clarent Class 4 Call Manager version 2.1, which provides features, such as local number portability, E911, private networking configurations, a radius interface to authentication, authorization and accounting servers, such as I-Master, and M2UA SS7 tunneling over IP. The NetPerformer line of integrated access routers enables multisite enterprises to lower communications costs, alleviate bandwidth constraints, reduce network complexity and extend telecom services to remote locations with poor or non-existent telecom infrastructures. This line of products enables information technology managers to integrate mission critical networks and applications across their enterprise, regardless of where they are in the VoIP migration process. NetPerformer enables enterprises to reduce telecom costs by eliminating monthly fees associated with tie lines that link remote offices to corporate headquarters and eliminate the toll charges on inter-office long distance calls. In 2005, the Company released its global system for mobile communication (GSM) A.bis/A. ter bandwidth optimization solution for the NetPerformer Multi-Service Convergence Platform. NetPerformer's GSM A.bis/A.ter option converts time division multiplex voice and data traffic channels to a more efficient packet-based format. While optim

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