© 2005 AudioCodes Ltd. All rights reserved.

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.

‘Safe Harbor’ statement

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.

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”.

Where We Play in Networks

AudioCodes and IMS

Service/Application Plane

Transport Plane

SignalingMedia

HSS - HLR/AuCApplication Servers - AS

SIP-AS OSA SCS IM-SSF

Control Plane

P-CSCF

CSCF

MGCF

IMS-MGW

IBCFTrGW

IP Network

IP Network

CS Network(PLMN/PSTN)

SGW

BGCF

S-CSCF I-CSCF

MRFP

MRF

MRFC

Access Networks(BB, WLAN, 3G)

UE/DevicesCore IP Network

i. MGW - PSTN to IP

ii. SBC - IP to IP, security

iii. MS - Applications

Growing Business with Diversified Customer Base

$147,353

$115,827

$82,756

$44,228$27,189

0

20000

40000

60000

80000

100000

120000

140000

160000

2002 2003 2004 2005 2006

•Balanced Business.

•Top 15 Customers - 47% of Sales (from 70%).

•Networking and Technology.

•Carrier and Enterprise Markets.

$27M to $147M in Four Years

36%

64%

41%

59%

46%

54%

52%

48%

63%

37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2003 2004 2005 2006 Jan-Sep07

Networking Technology

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 …

32.20%

25.20%

19.30%

15.60%

8.70%6.80%

5.40% 4.20% 3.80%

-12.80%

-16.50%

-28.60%

-8.00%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

WCDMA CarrierVoIP

Layer 4-7Switch

WLAN IP PBX Routers OpticalLayer 2-3Wsitch

CDMA WANSwitching

CircuitSwitching

GSM TraditionalPBX

2006-2010 Growth

2010 Market Size

Carrier VoIP and 3G, 4G Fastest Growing Sectors in Telecom

Growing Product Segments

Source: Infonetics Research, 2007

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

Voice Application Servers

Media Servers

Session Border Controllers

Trunk Media Gateways

Voice Application Servers $151,915 $195,795 $267,394 $374,782 $481,622 $607,040

Media Servers $64,448 $109,116 $185,246 $269,132 $370,825 $490,664

Session Border Controllers $87,240 $143,126 $226,375 $330,365 $444,879 $591,866

Trunk Media Gateways $1,119,495 $1,484,006 $1,648,987 $1,800,331 $1,932,538 $2,050,264

CY2005 CY2006 CY2007 CY2008 CY2009 CY2010

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™ 20x with internal router for residential\SOHO

deployment

MediaPack™ 11x with FXS/FXO interfaces

MediaPack™ 40x with BRI interface

Microsoft Partnership

Unified Messaging, March 2006 Unified Communications, June 2006

SMDI

E1/T1Exchange UM

FXO

FXO

E1/T1Mediant 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

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%)

Worldwide Mid Density Trunk Media Gateway DS0 Market Share

0%

20%

40%

4Q06 1Q07 2Q07 3Q07

Calendar Quarter

Ma

rke

t S

ha

re (

%)

AudioCodes

Cisco

Verso Technologies

Nortel

Nokia Siemens

Q3 2007 Service Provider VoIP Worldwide Market Share

Worldwide Mid Density Trunk Media Gateway Market Share

Manufacturer Category Amount Share Rank

DS0s 354,828 27% 1Revenue $8,102,390 15% 2

DS0s 12,279 1% 8Revenue $1,568,500 3% 5DS0s 198,600 15% 2Revenue $14,497,800 27% 1DS0s 29,184 2% 6Revenue $1,310,720 2% 7DS0s 33,000 3% 5Revenue $1,442,100 3% 6DS0s 138,719 11% 4Revenue $6,519,840 12% 3DS0s 17,816 1% 7Revenue $1,065,940 2% 8DS0s 141,962 11% 3Revenue $5,187,600 10% 4DS0s 378,274 29% NARevenue $14,243,540 26% NADS0s 1,304,662 100%Revenue $53,938,430 100%

3Q07

AudioCodes

Carrius

Cisco

Verso Technologies

Other

Total

Metaswitch

Nokia Siemens^

Nortel

Thomson Cirpack

Q3 2007 Service Provider VoIP Worldwide Market Share

Worldwide Low Density Trunking Media Gateway Market Share

Manufacturer Category Amount Share RankDS0s 26,509 4% 7Revenue $1,377,000 3% 7

DS0s 87,772 14% 4Revenue $5,604,980 14% 4

DS0s 52,350 8% 5Revenue $2,597,000 6% 6DS0s 132,400 21% 2Revenue $9,665,200 24% 2DS0s 92,202 15% 3Revenue $9,678,240 24% 1DS0s 36,856 6% 6Revenue $3,214,000 8% 5DS0s 173,198 28% 1Revenue $7,447,472 18% 3DS0s 14,989 2% NARevenue $1,003,190 2% NADS0s 616,276 100%Revenue $40,587,082 100%

Cisco

Total

GENBAND

Verso Techologies **

Veraz

Other

3Q07

Alcatel-Lucent*

AudioCodes

Cantata

Financial Performance and Targets

• 2006 + Q3 2007 Business Highlights

• Operating Model

• 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

Business Highlights

Actual results 2007 USD in Thousands, Non-GAAP

Q1-07 Q2-07 Q3-07Revenues 36,543 5.2% 38,444 5.1% 40,408 Cost of revenues 15,146 16,025 16,948 Gross profit 21,397 22,419 23,460

58.6% 58.3% 58.1%

Operating expenses: Research and development 9,201 9,594 9,444 Sales and marketing 9,599 9,764 9,238 General and administrative 2,210 2,160 2,191 Total operating expenses 21,010 21,518 20,873 Operating income 387 901 2,587

Net income 506 1,383 2,784

EPS 0.01 0.03 0.06

Operating Model (Non-GAAP)

2004 2005 2006

Revenues 100.0% 100.0% 100.0%

Gross Margin 58.5% 59.4% 59.7%Operating Expenses:

R&D 24.2% 21.1% 22.0%

Sales & Marketing 24.0% 22.4% 22.7%

G&A 5.9% 5.2% 5.0%

Operating income 4.4% 10.8% 10.0%

Summary

• Growing Company in a Growing Market

• Leading Edge Technology

• Business Model that Fits the Market Needs

• Global Market Presence

Thank you for your time