PanTerra Networks Strengthens Management Team in Preparation for Rapid Growth

Arthur Chang Brings Over 15 Years of Senior Level Experience As New Chief Executive Officer

SUNNYVALE, CA — June 27, 2007 — PanTerra Networks (www.panterranetworks.com), a provider of hosted unified communications services for businesses, today announced the appointment of Arthur Chang as CEO. Mr. Chang replaces PanTerra Networks co-founder Walter Snell, who remains with the company as CTO.

"Artie's deep understanding of not only the business issues but also the technical ones made him the obvious choice for PanTerra," said Mr. Snell. "We are all eager to benefit from his expertise as we focus on rapidly growing our customer base."

A veteran senior level executive with over 15 years experience leading tech firms through aggressive expansion phases, Mr. Chang assumes the new leadership role effectively immediately. He will oversee PanTerra's growth mission to become the leading provider of hosted IP communications solutions for the SMB market.

"We are pleased to have Artie on the team as the company's new CEO," said PanTerra Networks board member Andre Turenne. "Between Artie's extensive technology background and his solid leadership experience, PanTerra is strongly positioned to continue its accelerating success."

Prior to his appointment as CEO, Mr. Chang served as President and CEO of Cradle Technologies. During the past two decades, Mr. Chang also served as part of the senior management teams at several Silicon Valley-based technology companies including Solopoint.com, Inc., Wyse Technology and Parallan Computer, Inc. He started his career at Bell Laboratories in Illinois. Mr. Chang holds a master's degree in electrical engineering and computer science from UC Berkeley and an executive MBA from Stanford University.

"I am excited to be part of PanTerra Networks with its impressive product portfolio, tremendous growth potential, and solid financial backing," said Mr. Chang. "The company is bringing together an impressive team with an unwavering entrepreneurial spirit to create innovative products for customers."

About PanTerra Networks

PanTerra Networks is a leading provider of on-demand unified communications services for the small and mid-sized business. The Company's Worksmart solution integrates voice and IP calling, switchboard and call-distribution services, instant messaging and conferencing, with options for advanced collaboration and call center support. PanTerra's service-based, hosted on-demand delivery keeps capital investment low and aligns operating expense to business value. Worksmart services are co-branded and re-sold exclusively through representatives, service providers, distributors and resellers. The Company is privately held with headquarters in Emeryville, California. For more information, visit http://www.panterranetworks.com or call +1 (408) 702-2200.


Contacts:

Ming Shao
Director of Marketing
408.702.2233

press@panterranetworks.com

PanTerra Networks, Inc.
1153 Bordeaux Drive, Suite 102
Sunnyvale, CA 94089
+1 408.702.2200