Emblaze VCON Signs Strategic Partnership Agreements with Xenex and AVC of Finland

Emblaze Ltd ("Emblaze" or "the Group") announces that itssubsidiary Emblaze VCON had signed a strategic partnership with XenexTelecom Ltd (Xenex), a leading Finnish videoconferencing provider forthe enterprise market and its subsidiary, Applied Visual Computing Ltd(AVC), a provider of standard compliant rich media communicationssoftware for IP-networks, to supply a co-developed video telephony IPplatform to internet service providers (ISPs) in Finland this year andacross Europe next year.

According to the agreement, the new co-developed platform willoffer IP video telephony services to B2B, SOHO (small office homeoffice) and B2C markets. The combination of Emblaze VCON and AVCtechnology together with Xenex's new emeeting.fi service platform willallow the ISP subscriber to make IP-video calls from their desktop toany other desktop.

Esa Ojala, CEO of Xenex said: "Together with Emblaze VCON we nowprovide the subscribers an easy to use and standards compliant servicewith quality audio, video and data at a very affordable price. This isanother affirmation that our product is leading the technologicalrevolution that is making it easier for people to communicate fromwherever they are."

Eli Reifman, CEO of Emblaze Group, said: "As a leading provider ofIP communications we are in the forefront of fulfilling worldwidedemand for advanced video telephony services. We are very proud thatXenex and AVC have chosen us for this challenging project and areeager to bring our proven technological advantages of IP solutions tothe Finnish Telecommunication companies."

Notes to Editor

About Xenex

Xenex Telecom Ltd is the market leader in Finland forvideoconferencing systems and services. Xenex has been active invisual communications and collaborative computing for almost twentyyears and has constantly provided its customers the most advancedproducts and services available for videoconferencing, distancelearning and telemedicine. www.xenex.fi

About AVC

Applied Visual Computing Ltd provides standard compliant richmedia communications software for IP-networks. Its easy-to usedevelopment environment allows embedding remote visual communicationcapabilities into the applications and services of its partners thatare leading solution providers in their respective vertical markets.www.avc.fi

About Emblaze

Emblaze Ltd is a group of companies sharing a common mission toprovide telecom operators with technologies, products and solutionsfor next generation services: Emblaze Mobile, a new breed in handsetsdesign and manufacturing; Adamind (LSE:ADA), a global leader incontent adaptation (transcoding) for wireless operators; VisualDefence (LSE:VDI), a provider of wireless and IP video solutions formilitary and homeland security markets; Emblaze VCON, recently createdfrom the merger of Emblaze Systems and VCON , is a leading provider ofwireless video communications technologies and conferencing solutionsfor operators and enterprise markets over IP networks and OrcaInteractive (LSE:ORCA), provider of Interactive Television IPTVmiddleware for Video On Demand (VOD) and broadcast services, aimed atTelecom, cable and xDSL operators.

Emblaze Group is traded on the London Stock Exchange (LSE:BLZ)since 1996 and has offices in the United States, Canada, UnitedKingdom, China, Korea and Israel. www.emblaze.com.