( BW)(SKYPE) Skype Gives Small Businesses Market Advantage; Increased
Productivity, Cost Savings and Now One Easy Way to Pay with Skype
Groups

    Business Editors/Technology Editors

    LUXEMBOURG--(BUSINESS WIRE)--Oct. 25, 2005--Skype, the pioneering
Global Internet Communications Company which makes it possible for
anyone with an Internet connection to make free high-quality phone
calls, today announced Skype Groups, enabling one person to buy and
distribute Skype's premium services to multiple Skype accounts.
    Skype gives small businesses the market advantage against larger
competitors by lowering operating costs and increasing productivity
with voice calls, instant conference calling, group chat,
file-transfer, free toll-free calling and Skype Toolbars, which lets
callers make one-click calls to phone numbers directly from Outlook
and Internet Explorer.
    "From our research, we know that approximately 30% of our 61
million registered users rely on Skype for business purposes. We
responded to their needs with Skype Groups, which will increase
customer satisfaction by making it even simpler to purchase premium
services," said Niklas Zennstrom, Skype CEO and co-founder. "In
particular, businesses that outsource or have distributed teams will
find Skype's services incredibly valuable. No longer do managers have
to juggle multiple communications plans among multiple providers; with
Skype Groups, all employees are on one global platform at a fraction
of the cost."
    First available in beta in September, Skype Groups centralises the
management of pre-paid services. Group administrators can now make
large credit purchases to one account, from which they can distribute
credits to an unlimited number of Skype callers, as well as purchase
SkypeIn and Skype Voicemail premium services for group members. All
administrators can register a group for free and can purchase Skype
credit through Moneybookers and bank transfers; select administrators
can also use PayPal and credit cards.
    "Skype has fundamentally changed the modern communication
landscape by bringing high- quality free Internet voice communications
to the masses. Plantronics firmly supports the use of Skype for
business communication and the launch of Skype Groups will enable us
to centralise the cost and streamline the overall management," said
Philip Vanhoutte, MD, Plantronics EMEA. "Plantronics is Skype's
preferred headset partner and we are well positioned to offer a wide
range of wireless and wired headset solutions to the SME market,
making the use of Skype Groups even more compelling."
    From a recent survey of beta users, Skype found that small
businesses in a variety of industries are using Skype Groups to lower
operating costs. 25 percent of respondents are in the software and
services sector, 11 percent are in business services and eight percent
are involved in technology hardware and equipment.
    This research found that 63 percent of users surveyed are using
Skype to conduct business abroad, while 52 percent are also using
Skype across regional offices and 46 percent are using Skype to
conduct conference calls. This survey also discovered that 40 percent
of respondents don't have a standard PBX phone system.
    The research demonstrated the cost efficiencies reached as
businesses save with Skype when conducting business abroad, making
conference calls and communicating with regional offices. Morale of
expatriate staff living in developing countries dramatically improved
by being able to call family and friends more often, and increase
communications between field and head office staff with Skype instant
messaging. All business callers noted Skype improves cross-functional
and cross-country team communications, and saves significant money on
international calls.
    "We are excited about the benefits that Skype Groups offers to
small business collaboration", said Sunil Bhalla, senior vice
president and general manager of voice communications at Polycom. "The
Polycom SoundStation2 and SoundStation2W conference phones extend the
Skype experience using Polycom's Computer Calling Kit. Combining
Skype's high-quality Internet calling with Polycom's industry-leading
voice conferencing technologies provides a compelling conferencing
experience to small businesses."
    Small and medium-sized businesses are rapidly adopting VoIP
technologies, indicated by the fact that long-distance call volume for
SMBs is on the rise, and total telecom spending is expected to
continually decrease. For the increasing number of mobile employees,
VoIP applications offer the ability to collaborate with team members,
stay connected with customers, vendors and coworkers in real time -
regardless of geographical location. SMBs in the emerging markets of
China, India and Russia spent $19.4 million on VoIP in 2003, and are
expected to spend over $200 million in 2008 (Source: AMI Partners).

    About Skype Technologies SA

    Skype, the Global Internet Communications Company(TM), allows
people everywhere to make free, unlimited, superior quality voice
calls via its award-winning innovative peer-to-peer software for
Windows, Linux, Mac OS X, and Pocket PC platforms. Skype is available
in 27 languages and is the fastest growing voice communications
offering worldwide. Since its launch in August 2003, Skype has been
downloaded more than 186 million times in 225 countries and
territories. 61 million people are registered to use Skype's free
services, with more than 3 million people using Skype simultaneously
at any one time. Skype earns revenue through its premium service
offerings, and has a growing network of global affiliates, and a
community of developers working with the Skype APIs. Skype
Technologies SA is headquartered in Luxembourg and has offices in
London and Estonia. www.skype.com

    --30--SM/UK*

    CONTACT: Skype Media
             Daniel Twigg, +44 2071933354
             Skype Name: dantwigg
             email: Daniel.twigg@skype.net
             or
             Sara Myers, +44 7919 422190
             Skype Name: saramyersla
             email: sara.myers@skype.net