Financing to Support the Launch of New VoIP Security Products in 2008

Ottawa, ON – February 5, 2008 – VoIPshield Systems today announced the company has secured $6 million in Series B funding. The new investment, led by NAOR Group Ltd. and joined by existing investor Brightspark Ventures, will be used to support the launch of the company’s new suite of VoIP security products, scheduled for general availability in mid-2008.

“VoIPshield’s approach to securing enterprise Voice over IP phone systems combined with their vision for the coming market is what led us to invest,” said Larry Krauss, President, Naor Group Ltd. “The company’s years of research in specific VoIP vulnerabilities position it very well in a market that’s fast approaching. We believe VoIPshield is poised to be a leader.” Mr. Krauss has also joined the company’s board of directors.

The VoIPshield Security Suite provides a full range of solutions to meet the security needs of enterprise VoIP networks. Each application uses VoIPshield’s proprietary database of VoIP-specific vulnerabilities and signatures, developed by VoIPshield Labs. The database is a collection of previously-undiscovered exploits and zero-day attacks on popular VoIP PBXs and phones, and is unique in the industry.

The company’s first product, VoIPauditTM, scans an enterprise’s VoIP network to inventory all VoIP assets and determine if any are vulnerable to internal or external attack. Threats include hacker attacks designed to paralyze phone systems or intercept confidential calls or propagate voice spam. For each found vulnerability, VoIPaudit identifies procedures to remediate the security threat.

“While VoIP security attacks aren’t widely publicized, they are happening, and we expect the number of breaches to increase each year into the foreseeable future,” said Rick Dalmazzi, President and CEO of VoIPshield Systems. “We’re pleased that our new and existing investors have shown confidence in our vision of the market. This injection of new working capital will enable us to expand our reach into the market as we prepare for the release of our new products in 2008.”

VoIPaudit’s customers receive continual updates to the vulnerabilities database through VoIPaudit’s ThreatUpdateTM function, included in all VoIPshield’s security products. VoIPaudit supports products from the leading VoIP PBX and phone vendors. VoIPauditTM is available now. VoIPguardTM, a VoIP Intrusion Prevention System (VIPS), will be generally available in spring 2008.

About VoIPshield Systems
VoIPshield Systems Inc. develops products to secure voice communications on IP networks. The company’s VoIP Security Suite includes VoIPaudit™, a VoIP Vulnerability Assessment (VVA) and penetration testing tool; VoIPguard™, a VoIP Intrusion Prevention System (VIPS); VoIPscreen™, a VoIP Network Access Control (VNAC) system; VoIPblock™, an Anti-SPIT (Voice Spam) system; and VoIPportal™, a common application portal and management console. Each application draws on VoIPshield’s proprietary database of VoIP-specific vulnerabilities and exploits, developed by VoIPshield Labs. The database is a collection of previously-undiscovered exploits and zero-day attacks on popular VoIP PBXs and phones, and is unique in the industry. For more information please visit www.voipshield.com.

About Naor Group Ltd.
Naor Group Ltd. (NGL) is a single purpose fund set up to invest in leading edge technology companies identified by Toronto-based SMI Ventures Inc. (SVI). SVI is wholly owned by Syndicat Management Inc. (SMI), a Toronto based private equity group that specializes in real estate acquisitions, development, management and early stage high-tech. SMI has carved out a niche as an investment and management group that is defined by sound conservative principles. SVI and its predecessors have 16 years of experience in the venture capital arena. SVI has invested in a number of technologies including optics, machining, media, IT software and hardware, medical devices through various funds active in North America and Israel.

About Brightspark Ventures
Brightspark is a leading technology venture capital fund. Brightspark’s innovative investment approach focuses on working closely with portfolio companies through their development and growth phase. Brightspark’s team brings years of investment and operational experience in the areas of enterprise infrastructure software and communications systems. With offices in Toronto and Montreal, Brightspark is backed by leading institutional investors who share its investment philosophy and approach.