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TouchStar Addresses Marketplace Concerns Head On

Denver, CO — July 23, 2008

TouchStar, a world leader in call center technology, today directly addressed false comments that have been made to TouchStar clients and prospects.

Steve Bederman, TouchStar’s Chief Executive Officer, said: “TouchStar’s sales and support teams have been told by several clients and prospective clients that a handful of people are spreading false and disparaging statements about TouchStar. TouchStar has made several significant and healthy changes in 2008. We properly adjusted for redundancies gained from prior acquisitions and we built a better business model based on lessons we learned as we grew. I am not surprised that a few competitors have tried to use unprofessional tactics because TouchStar’s market share continues to grow.”

Steve also added: “I made a decision in March, during the week that Bear Stearns failed, that TouchStar would increase profitability to ensure that cash flow would sustain the company even if the economy slowed down. While we have very strong banking and investment partners, we suspected that their ability to extend lines of credit would soon change. We made a proactive decision to reduce expenses. I also brought in a very experienced organizational change expert to help us identify opportunities to improve our business model. As an example, our change consultant immediately identified a need to add more real time probes into every part of our business to make decisions faster.”

Rick Morris, TouchStar’s Chief Operating Officer, provided an update on TouchStar’s business model adjustments and results through the first half of 2008. “TouchStar sales, marketing, installation, and support departments all set performance records in the second quarter of 2008 as TouchStar executed a 20 point plan designed to maintain our growth while reducing inefficiencies.”

Sales results set all time records. The average revenue per new sale rose 23% due to a price increase and the launch of TouchStar’s new Enterprise Call Center Software. TouchStar continues to expand into the enterprise market as large call centers identify the opportunity to greatly reduce their support and expansion costs by implementing a TouchStar 2008 Enterprise Call Center system. Quantity of sales also increased as the hosted call center software business unit achieved new sales records.

Marketing activities became even more focused on tactics that have proven to produce direct results. Lead production and new sales opportunity pipelines rose to record levels as lead quality remained constant.

Installation and support departments increased their performance as scorecards were implemented to provide managers and employees with specific quantitative and qualitative metrics to monitor and review together periodically. Every employee’s scorecard includes metrics that relate to TouchStar’s 2008 business plan so that every employee understands their direct correlation to the success of TouchStar customers, fellow employees, and financial results.

About Touchstar

TouchStar develops and supports world class call center software with on-site and hosted deployment options. TouchStar serves over 2,500 businesses on six continents from its headquarters in Denver and regional offices around the world. TouchStar’s unified communications products include: call center software, traditional and VoIP telecommunications systems, predictive dialers, automated voice messaging, advanced ACD & IVR, compliance management, and an IP PBX phone system. For more information, please call 303.338.0678 or visit http://www.touchstar.com.

Contact:

TouchStar PR

303.338.0678 x204

pr @ touchstar.com

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