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Ditech Networks (Nasdaq: DITC), a leading provider of voice quality solutions to the world’s communications industry, today announced that it has been chosen to demonstrate its voice quality solution during “Innovation Showcase,” an new
event created by CableLabs as part of its 2008 winter conference. The Innovation Showcase gives a select number of vendors in the cable industry the opportunity to present products and technologies to conference attendees.

Ditech is conducting a live demonstration of its Voice Quality Assurance (VQA) product, and how it reduces or eliminates voice quality impairments from a caller’s environment. Ditech’s industry-leading VQA solution unobtrusively and proactively mitigates impairments in cable networks on both ends of the call, including echo and ambient noise. The
product also intelligently restores lost packets that can cause clipped or choppy speech. By mitigating voice quality impairments in the network, the caller’s environment, and the caller’s phone or headset, Ditech’s VQA delivers a consistent, high-quality call experience for VoIP service.

Voice quality remains a top priority among cable subscribers who use VoIP service, especially among small- and medium-sized businesses. Echo caused by phones or headsets, along with clipped speech from lost packets, remain obstacles to consistent VoIP voice quality. Because many of these impairments originate in the caller’s environment or with the devices that are used by subscribers, cable operators are unable to solve these problems through network QoS (Quality Of Service) initiatives or additional
bandwidth.

“Adding bandwidth may help with several VoIP issues, but it doesn’t solve the problem of devices that cause echo, or background noise from a busy office,” said Todd Simpson, President and CEO of Ditech Networks.

“Even though these impairments occur outside of the network, subscribers still rely on their cable operator to deliver consistent voice quality, especially as they experience VoIP for the first time.”

Ditech will demonstrate VQA during the morning on Monday, Feb. 11, at CableLabs Winter Conference 2008, which is being held at the Broadmoor Hotel in Colorado Springs, Colo.

About Ditech Networks

Ditech Networks is shaping the future of voice quality through continuous innovation and leadership for the world’s communications companies. Ditech’s voice quality solutions are deployed in wireless and wireline networks to optimize the call experience. By delivering consistent, dependable voice quality, Ditech’s products help global communications companies meet the multiple challenges of 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 http://www.ditechnetworks.com.

Forward Looking Statement
This press release contains forward-looking statements regarding Ditech Networks’ expectations of the benefits the global communications industry will receive using Ditech’s VQA solution. Actual results could differ materially as a result of unanticipated factors and events, including the risk that Ditech Networks’ VQA solution, or the company’s hardware platforms, may exhibit unforeseen technical problems that will preclude those benefits from being realized, as well as those detailed in the “Future Growth and Operating Results Subject to Risk” in Part I, Item 2 of Ditech Networks’ Quarterly Report on Form 10-Q for the quarter ended Oct. 31, 2007 (filed Dec. 7, 2007 with the Securities and Exchange Commission).

CableLabs is a trademark of Cable Television Laboratories, Inc. An equipment demonstration at CableLab’s event does not constitute CableLabs’ endorsement of that equipment or technology. 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.

SOURCE Ditech Networks

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