Rostelecom and ITXC Sign Global Bilateral Exchange Agreement

“Rostelecom” (NYSE: ROS; RTS: RTKM), Russia’s national long-distance telecommunications operator, and ITXC Corp.? (NASDAQ: ITXC), one of the world's leading international carriers, announced at the Intelsat Global Telecommunications Meeting, GTM 2003, in Washington, DC, that the companies have signed an agreement for bilateral exchange of international voice traffic to and from Russia over ITXC's global Voice over IP (VoIP) network ITXC.net?.

When Rostelecom terminates calls over ITXC.net, it will benefit from low costs, increased margins, a global footprint, and high quality. Rostelecom also will benefit from the call termination revenue from ITXC when it terminates calls in Russia aggregated from hundreds of carriers around the world. Rostelecom is able to secure, regain and even grow market share when they adopt ITXC's cost-efficient global offerings.

Interconnection with Rostelecom brings to ITXC’s customers the benefits of the full Russian national footprint of the incumbent carrier. Rostelecom brings the benefits of high quality call termination and a competitive cost base.

“The relationship with Rostelecom and ITXC is a good example of Rostelecom’s new strategy of increasing the range of its customer base with global operators such as ITXC who provide high quality, competitive cost voice services. ITXC in return receives high quality voice termination and competitive rates from Rostelecom to the entire Russian Federation,” said Petrov A.L., Rostelecom’s Head of International Telecommunication Department.

“We are pleased that an international operator with such an established market presence as Rostelecom has recognized the advantage of our global network to aggressively compete in Russia’s highly competitive market,” said Chris Haller, ITXC Managing Director for Central & Eastern Europe, Russia and the Newly Independent States. “Through a single connection, Rostelecom can send and receive calls across ITXC.net to and from every location in the world. They benefit from a new revenue source while lowering costs enabling them to focus their efforts on continuing to win market share in Russia.”

About Rostelecom:

Rostelecom Public Corporation (www.rt.ru) is a major Russian telecommunication enterprise, the nationwide operator of international and long-distance telecommunications, and a leader in the related services market. The Company’s license, issued by the Russian Federation Ministry of Telecommunications and IT, encompasses a centralized running of the primary backbone network, international and long-distance secondary networks and data transfer between networks throughout the country. Rostelecom Corporation operates the data and telecommunications networks throughout the Russian Federation. The network backbone comprises more than 200,000 km of primarily digital communication lines. The Company provides most of the long-distance and international communications traffic, as well as the ground network operation for television and radio channels. Rostelecom also ensures Russia’s communication with 211 countries worldwide.

About ITXC:

ITXC Corp. (www.itxc.com) is one of the world's leading carriers based on minutes of international traffic carried. As a carriers' carrier, ITXC serves all major carriers in the US; many incumbent carriers worldwide including China Telecom, PLDT, Telkom South Africa, Telecom Colombia, Telenor, Telia, and VSNL; and emerging and competitive carriers including COTAS-Teledata in Bolivia, Vietel in Vietnam and Data Access in India. ITXC also serves a growing number of mobile carriers including China Mobile, one of the world's largest mobile carriers. ITXC is the global market share leader in VoIP international calling with approximately 20% of the market, according to TeleGeography 2003. ITXC was also the Fastest Growing Technology Company in North America according to the 2002 Deloitte & Touche Technology Fast 500 ranking.