‘Safe Harbor’ statement Statements concerning AudioCodes' business outlook or future economic performance; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements'' as that term is defined under U.S. Federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: the effect of global economic conditions in general and conditions in AudioCodes' industry and target markets in particular; shifts in supply and demand; market acceptance of new products and continuing products' demand; the impact of competitive products and pricing on AudioCodes' and its customers' products and markets; timely product and technology development/upgrades and the ability to manage changes in market conditions as needed; and other factors detailed in AudioCodes' filings with the Securities and Exchange Commission. AudioCodes assumes no obligation to update the information in this presentation.

Agenda Brief introduction to AudioCodes VoP market overview AUDC - Market Share Q3 - 2007 Highlights Financials

AudioCodes At a Glance Focus on Voice over IP - connecting networks , enabling applications. Market leading - Media Gateways and Media Servers. Leaders – Voice quality, security, feature richness and interoperability. Netrake acquisition - Session Border Controllers, Security Gateways. 14 Years Focused on Voice over IP. Deployed in over 75 Countries. ~ 677 Employees (~ 50% R&D). Executing and Growing – $27M 2002 , $147M 2006. Nuera , Netrake & CTI Acquisitions. 4

AudioCodes At a Glance Proven execution record in evolving the business. Chips, Blades, Systems. Technology 35% , Networking 65%. Customer base - VOIP pioneers and application developer, NEPs\OEMs, Service Providers. Move up the value chain and add more value to customers. 2007 Transition year Shifting to broader customer base (NEPs\OEMs to Service Providers). Integrating acquisitions. Enhancing our value proposition: bundled offerings, services, responsiveness. Offer a broader solution to customers, challenges and not just a “technology or product sale”. 5

Where We Play in Networks

AudioCodes and IMS Application Servers - AS HSS - HLR/AuC BGCF MGCF Service/Application Plane Signaling Application Servers - AS Media HSS - HLR/AuC SIP-AS OSA SCS IM-SSF MGW - PSTN to IP SBC - IP to IP, security MS - Applications BGCF CSCF Control Plane S-CSCF I-CSCF MGCF SGW P-CSCF CS Network (PLMN/PSTN) MRFP MRF MRFC IMS-MGW Access Networks (BB, WLAN, 3G) IP Network Core IP Network UE/Devices IBCF TrGW Transport Plane IP Network

Growing Business with Diversified Customer Base $27M to $147M in Four Years Balanced Business. Top 15 Customers - 47% of Sales (from 70%). Networking and Technology. Carrier and Enterprise Markets.

Balanced Business Carrier and Enterprise Markets 3 segments : wireline, wireless (FMC, EVDO RevA, UMTS) and cable Grew from nearly none to many Service Provider customers within 18 months Global Presence, Sales & Support Infrastructure in Place Aligning OPEX with Growth Strategy Regional perspective : North America 57% , EMEA 26%

Focused on Customers and Partners Service Providers

Focused on Customers and Partners System Integrators Leading NEPs SSW & Solution Providers

Telecom - Play in Growing Markets and … Carrier VoIP and 3G, 4G Fastest Growing Sectors in Telecom 12 12

Growing Product Segments Source: Infonetics Research, 2007

AudioCodes CPE Opportunity Customer Premises Equipment Good momentum CPE & SIP Gateway opportunities are expanding Migration to C5 and Hosted Services and enlarges addressable market We surround the App, enabling bundled offerings Significant Enterprise opportunity

CPE : Complete Product Line Mediant™ 2000 with SS7 capabilities for Operators and Service Providers Mediant™ 1000 with mix-and-match modularity for Businesses MediaPack™ 11x with FXS/FXO interfaces MediaPack™ 40x with BRI interface MediaPack™ 20x with internal router for residential\SOHO deployment

Microsoft Partnership Unified Messaging, March 2006 Unified Communications, June 2006 SMDI E1/T1 Exchange UM FXO Mediant 1000 (Mixed) Mediant 2000 (Digital) MediaPack (Analog)

AudioCodes and Microsoft The broadest gateway range for Microsoft Unified Communications Exchange 2007 Office Communications Server 2007

Q3 2007 Service Provider VoIP Worldwide Market Share 18

Q3 2007 Service Provider VoIP Worldwide Market Share 3Q07 market share for mid density media gateways: Audio Codes is first worldwide in DS0s (27%) and second in revenue (15%); AudioCodes is also number one for DS0s in North America (35%), EMEA (28%), and Asia Pacific (26%) 19

Q3 2007 Service Provider VoIP Worldwide Market Share

Q3 2007 Service Provider VoIP Worldwide Market Share 21

Financial Performance and Targets 2006 + Q3 2007 Business Highlights Operating Model

Business Highlights Q3 2007 Non GAAP results: 2006 - ACL business grew above 25% Networking grew > 40% Mid density MGWs, CPE, MS, Service Technology grew ~15% Blades, Chips ACL Direct sales to Service Providers grew > 40% Q3 2007 Non GAAP results: Revenues $40.4M +5% vs Q2 Pro forma gross margin 58.1%, Net Income $2.8M Cash $134M , cash provided by operating activities $2.9M GAAP 56% GM, NP $200K 23

Actual results 2007 USD in Thousands, Non-GAAP

Operating Model (Non-GAAP)

Summary Growing Company in a Growing Market Leading Edge Technology Business Model that Fits the Market Needs Global Market Presence

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