PhoneTag’s Automated Voicemail-to-Text Solution Now Available Behind the Firewall

Ditech Networks (NASDAQ: DITC) today announced that Mutare Software has chosen Ditech’s PhoneTag automated voicemail-to-text service to provide business users highly accurate voicemail transcription. Mutare’s Enabled VoiceMail (EVM) server now provides enterprise customers using Avaya, Nortel, Cisco, Shoretel, and other systems with voicemail-to-text inside the corporate firewall. PhoneTag’s automated service is incorporated into Mutare’s EVM, which supplies advanced voicemail features as well as ease of use for enterprise users.

PhoneTag Auto provides highly accurate, fully automated voicemail transcription that is delivered to the user’s email inbox and/or mobile device. By working behind the firewall, PhoneTag and Mutare’s EVM deliver enterprise customers a secure solution that not only improves access to voicemail but also turns voicemail into data that can be easily archived and searched. This allows IT departments to deliver the tremendous productivity improvement of converting voicemail content into actionable data without compromising their data security.

"Enterprises are increasingly looking to voicemail-to-text services as a way to improve efficiency,” said Ben Crown, President of Mutare. "Ditech addresses a compelling need for many customers that want voicemail-to-text but require the security of a fully automated solution behind the firewall.”

"From the very beginning we have been working towards the point where our cloud-based software was efficient enough to run on the enterprise location,” said James Siminoff, Chief Strategy Officer of Ditech Networks. "The integration of PhoneTag’s automated solution and Mutare’s EVM, has taken that vision and turned it into reality.”

About Mutare

Mutare Software develops enterprise connectivity solutions that leverage an organization’s existing communications infrastructure, enabling customers to unify communications, streamline processes, increase productivity and provide outstanding service. Among the hallmarks of a Mutare solution is the sophistication of its design paired with ease of deployment and use. Since its founding in 1989, Mutare Software has built a reputation for personalized service and immediacy, with more than two thousand applications currently installed worldwide. Visit www.mutare.com.

About Ditech Networks

Ditech Networks is revolutionizing modern communications with advanced voice processing solutions and voice applications that offer network and speech quality enhancement, voice call control, speech-powered web access, voice-to-text services, and more. Ditech believes in the power and simplicity of human speech. Its technology is designed to deliver compelling voice capabilities to emerging forms of communication like social networking and text messaging, allowing consumers to use voice in ways that make sense in today’s Web 2.0-savvy world.

Leveraging over 20 years of deployments with communications providers around the world, Ditech offers unique, effective products and services that put the subscriber’s experience first, assisting carriers with revenue generation, service differentiation, network expansion and call capacity. Ditech’s customers include Verizon, Sprint/Nextel, Orascom Telecom, AT&T, China Unicom, Global Crossing and West Corporation. Ditech Networks is headquartered in Mountain View, California. For more information, visit www.ditechnetworks.com.

Forward Looking Statement

This press release contains forward-looking statements regarding Ditech Networks' expectations of the capabilities of and the benefits from using PhoneTag in conjunction with Mutare’s Enabled VoiceMail (EVM) application and the timing of sales of these products. Actual performance of PhoneTag could differ materially as a result of unanticipated factors and events, including that Ditech Networks could face unforeseen difficulties in integrating PhoneTag with Mutare’s customer networks. Further risks inherent in Ditech Networks' business are detailed in the section entitled "Future Growth and Operating Results Subject to Risk" in Ditech Networks' Quarterly on Form 10-Q for the quarter ended July 31, 2009 (filed September 2, 2009 with the Securities and Exchange Commission).

Ditech Networks and Voice Quality Assurance are trademarks or registered trademarks of Ditech Networks, Inc. All other trademarks are the property of their respective owners.