Telchemy Welcomes Joseph Formichelli as New Board Member

Veteran IBM and Toshiba Executive Adds Breadth and Expertise to Telchemy Team

Atlanta, GA (Sept. 19, 2002) - Telchemy® Inc., an emerging industry leader in embedded agent technology for Voice and Video over IP (V2oIP) Quality-of-Experience (QoE) monitoring, analysis and real-time expert diagnostics, is pleased to announce that veteran industry executive Joseph "Joe" Formichelli has joined the company's Board of Directors. With over 30 years of high-tech industry experience with both large enterprises and start-ups, Mr. Formichelli brings proven success in senior and executive management roles and offers a wealth of business and operational expertise.

Mr. Formichelli spent twenty-eight years at IBM becoming Vice President of Worldwide Operations directing the manufacturing, logistics and procurement divisions. He was also Vice President and General Manager of IBM's groundbreaking ThinkPad family of notebook computers that generated over $2 billion of annual revenues. Mr. Formichelli has served as the Executive Vice President of Toshiba's Computer Systems Group where he oversaw Toshiba's computer business in North America and Latin America. Mr. Formichelli has also served as President and CEO for Hayes Modems, where he previously worked with Telchemy's founder and President, Dr. Alan Clark and served as President of ClearCube, an Austin, Texas start-up.

He has served on corporate boards and venture fund advisory councils. He holds an MBA degree from MIT's Sloan School of Management where he was a Sloan Fellow. Currently, Mr. Formichelli is Chief Operating Officer for Valence Semiconductor, a mixed-signal communications semiconductor company.

"We are very pleased that Joe has agreed to join our team", said Dr. Clark. "His experience, proven management capabilities and industry awareness marks Joe's addition as an important milestone for Telchemy, especially at our current stage," added Dr. Clark. "Joe's leadership and excellent track record in helping to successful companies will prove invaluable in guiding Telchemy toward achieving its objectives."

"After reviewing Telchemy's team, strategic direction, product and IP portfolio, it clicked and it became clear to me that they are a company with a bright future," said Mr. Formichelli. "This is a great opportunity as Telchemy is emerging as a core technology leader in the emerging market that is poised for high growth by all accounts," Mr. Formechelli added. "I look forward to working with Dr. Clark again and in contributing significantly to the company's success."

About Telchemy

Telchemy develops real-time network Quality of Experience (QoE) embedded monitoring, analysis and expert diagnostic technologies that are integrated by V2oIP equipment manufacturers to help provide the highest quality V2oIP service delivery achievable over packetized networks such as the Internet. Telchemy is the world's first technology company to provide voice quality management tools that consider the effects of time-varying network impairments and accounts for human perceptual characteristics such as the recency effect. Telchemy technology is also the first to provide both listener and conversational call quality metrics. Telchemy technology enables the greatest number of calls using the least amount of resource for a specified call quality level. For more information, visit http://www.telchemy.com.