Sagem Communication, a
global leader in the fields of mobile and broadband communications, announced
today the acquisition of Interstar Technologies Inc. ( and
the creation of a new Sagem Interstar subsidiary based in Montreal, Quebec.
Interstar designs, develops and distributes IP based fax servers for converged
communications networks.

— Interstar Technologies Inc., headquartered in Montreal, Quebec,
Canada, is the pioneer and recognized world leader in Fax over IP (FoIP)
servers. Interstar Technologies started a revolution in the fax server space
in 1996 with the launch of LightningFAX, an analog based solution and then
reinvented the fax server in 2002 with the introduction of the innovative
XMediusFAX product line based on IP technology. This IP based fax server
solution utilizes the ITU real-time T.38 FoIP protocol thus eliminating the
need for specialized communications hardware. The solution is aimed at both
enterprise customers and service providers alike. Thousands of Interstar
products are installed in over 30 countries in companies of all sizes
representing a broad range of industries including finance, healthcare,
manufacturing, government agencies as well as telecommunications and IT
service providers.

— Sagem Communication is a leader in the global fax industry with a
dominant market position in the fax terminal sector, such as thermal transfer
terminals, as well as in fax servers. The company markets solutions aimed at
the small and medium size businesses as well as major accounts enabling the
use of T.37 and T.38 compatible printing terminals.

“The acquisition of Interstar technologies supports our market
penetration and growth strategies by allowing us to bring together the
technologies required for the delivery of an end-to-end solution that merges
the ease of use of our traditional document management and fax solutions with
an all IP communications architecture”, said Patrick Sevian, Deputy Chief
Executive Officer of Sagem Communication.

“This acquisition will allow us to significantly expand our activities in
North America and to become the number one Fax over IP technology provider in
the world.”

A world leader.

For the fourth consecutive year, Interstar leads the industry with a 75%
market share of real-time FoIP servers according to the latest Davidson
Consulting report. This market segment is expected to grow at a rate of 10%
per year through 2009.
Interstar Technologies has partnered with several of the world’s leading
providers of VoIP technologies and network infrastructures to certify their
products as interoperable with the company’s T.38 based XMediusFAX products.

Combining Sagem Communication’s and Interstar’s R&D: an expanded market
opportunity for the future
Interstar’s expertise in the design and development of FoIP servers
coupled with the Sagem Communication’s expertise in the development of
multifunction terminals integrating fax will allow the combined entity to
offer innovative and efficient solutions perfectly integrated with the IP