November 7, 2011

Neutral Tandem to Offer Cloud-Based Unified Communications Through Cisco Channel Partners

New Service Will Utilize Cisco's Hosted Collaboration Solution Platform to Offer VARs and Integrators Turn-Key, Hosted UC Solutions

CHICAGO, Nov. 7, 2011 (GLOBE NEWSWIRE) -- Neutral Tandem, Inc., (Nasdaq:TNDM), a leading provider of global interconnection services, today announced its plans to introduce the first cloud-based collaboration service in the United States specifically developed to be resold by Cisco's Value-Added Reseller (VAR) community and System Integrators (SIs). The new cloud-based service is based on Cisco's next-generation Unified Communications infrastructure and will leverage Neutral Tandem's extensive expertise in operating and managing IP networks. Neutral Tandem has entered into HCS Trial agreements with select Cisco authorized VARs and is trialing the service with them.

The service, based on Cisco's Hosted Collaboration Solution (HCS), will enable VARs/SIs to deliver a full suite of unified communication and collaboration applications, including Single Number Reach, Integrated Messaging and Presence, Video Calling and WebEx integration. HCS provides support for single site, multi-site and hybrid premise-based implementations that allow significant flexibility to business customers. This solution will enable VARs/SIs to sell a monthly subscription based solution under their own brand. Additionally, VARs/SIs can provide customized solutions to their client base by overlaying HCS with their own managed services. This will offer VARs/SIs the unique opportunity to differentiate themselves while growing their revenue predictably and without heavy front-end CAPEX costs for themselves or their customers. 

The Neutral Tandem service will provide a robust set of tools necessary for Cisco VARs/SIs to sell and manage the full suite of HCS services. This new service is designed to integrate with a VAR's/SI's existing unified communications and collaboration services provisioning and management processes. Furthermore, Neutral Tandem's focus on providing solutions to the wholesale market will preserve the end-user customer relationships with the VAR/SI.

Cisco's research shows that the market for hosted unified communications and collaboration solutions is growing significantly. By 2013, hosted collaboration is projected to grow to $8 billion, comprising 31 percent of the Unified Communications market. Reselling Neutral Tandem's wholesale HCS offering will allow VARs/SIs to meet the growing demand for cloud solutions.  

Nexus IS, Inc., a Cisco Gold Certified Partner focused on offering collaboration, data center, borderless networks, business video and managed services, is the first Cisco channel partner to trial Neutral Tandem's new HCS offer. "We are pleased to be involved in the proof-of-concept phase for Cisco Systems and Neutral Tandem's new collaborative HCS solution. We are particularly impressed by Neutral Tandem's detailed understanding of the market and network neutrality. Our customers have been asking for a solution like this and Neutral Tandem's network neutrality is what drew us to their offer," said Mike Heiman, VP of Engineering of Nexus IS, Inc.  "This is a great program that will provide us the ability to differentiate ourselves while competing more effectively."

"We are excited to develop this new hosted offer together with Cisco and expand our product portfolio to include cloud-based services that will help companies cost effectively meet the unified communication needs of the market," added Surendra Saboo, President and COO of Neutral Tandem. "This will be an ideal way for VARs and system integrators to be able to offer a Hosted Collaboration Solution to their enterprise customers while benefiting from a new stream of recurring revenue."

"Cisco has a range of go-to-market strategies to meet the growing demand for cloud collaboration services and Neutral Tandem's white label offering of HCS is one model that presents a significant business opportunity for channel partners," said Richard McLeod, senior director for Cisco's Worldwide Partner Collaboration Sales and Practice Management. "As the first US-based partner to bring a white-label HCS offering to market, Neutral Tandem will help VARs and integrators drive growth and profitability while providing end customers with a proven collaboration solution."

To find out how to utilize Neutral Tandem's Hosted Collaboration Solution to increase revenue opportunities and to provide collaborative solutions to the enterprise market, contact HCS@NeutralTandem.com or visit www.neutraltandem.com.

The Neutral Tandem, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3797

Cautions Concerning Forward Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical fact, included in this press release regarding Neutral Tandem's strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words "anticipates," "believes," "expects," "estimates," "projects," "plans," "intends," "may," "will," "would," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward‑looking statements Neutral Tandem makes. Factors that might cause such differences include, but are not limited to: our ability to enter into a final definitive agreement with Cisco for the Hosted Collaboration services on acceptable terms or at all; risks associated with our ability to successfully develop and market Hosted Collaboration services to Cisco VARs/SIs, risks associated with our ability to successfully provide Hosted Collaboration Services, including but not limited to identifying, obtaining, operating and maintaining equipment, software and business support systems; our inability to interconnect with third parties or obtain necessary third party rights or permits on a timely basis, if at all; cost estimation errors or overruns; material delays or shortages; and other factors, many of which are beyond our control and all of which could delay or negatively affect our ability to offer Hosted Collaboration services; and other important factors included in our reports filed with the Securities and Exchange Commission, particularly in the "Risk Factors" section of Neutral Tandem's Annual Report on Form 10-K for the period ended December 31, 2010 and Quarterly Report on Form 10-Q for the periods ended March 31, 2011 and June 30, 2011, as such Risk Factors may be updated from time to time in subsequent reports. Furthermore, such forward-looking statements speak only as of the date of this press release. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

About Neutral Tandem, Inc.

Headquartered in Chicago, Neutral Tandem, Inc. provides voice, data and video interconnection services worldwide. Neutral Tandem recently acquired Tinet, a global carrier focused on the IP Transit and Ethernet wholesale market. The acquisition combines Neutral Tandem's interconnection services for wireless, wireline, cable and broadband companies with Tinet's global IP backbone. Collectively, Neutral Tandem provides voice, IP Transit and Ethernet solutions to carriers, service providers, and content management firms worldwide. With over 100 Ethernet sites, the company is now the largest global Ethernet interconnection provider, a top 10 global IPv4 backbone provider and has a leading IPv6 network. Please visit Neutral Tandem's website at www.neutraltandem.com and follow us on Twitter@NeutralTandem.

CONTACT: Media Contact:

         Jaymie Scotto & Associates

         Jaymie Scotto

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         Investor Contact:

         Neutral Tandem, Inc.

         Jim Polson

         1-866-268-4744


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