2. ‘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.

3. Agenda Brief introduction to AudioCodes VoP market overview
AUDC - Market Share
Q Highlights
Financials

4. 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

5. 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

6. Where We Play in Networks

7. 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

8. 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.

9. 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%

10. Focused on Customers and Partners
Service Providers

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

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

13. Growing Product Segments
Source: Infonetics Research, 2007

14. 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

15. 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

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

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

18. Q3 2007 Service Provider VoIP Worldwide Market Share18

19. 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

20. Q3 2007 Service Provider VoIP Worldwide Market Share

21. Q3 2007 Service Provider VoIP Worldwide Market Share21

22. Financial Performance and Targets
Q Business Highlights
Operating Model

23. Business Highlights Q3 2007 Non GAAP results:
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%
Q 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

24. Actual results 2007 USD in Thousands, Non-GAAP

25. Operating Model (Non-GAAP)

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

27. Thank you for your time