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SANTA CLARA, CA, March 18 /PRNewswire-FirstCall/ – Xten Networks, Inc. (OTCBB: XNWK – News), a provider of award-winning VoIP (Voice over Internet Protocol), Video over IP, Instant Messaging (IM), and Presence SIP softphones, today reported financial results for the third quarter ended January 31, 2005.

Total revenue for the quarter climbed to a record $928,608, compared to $677,364 for the quarter ended October 31, 2004, an increase of 37% quarter-over-quarter. This compared to $10,874 in the year-earlier period ended January 31, 2004.

Net loss for the quarter was $88,827, or ($0.00) per diluted share, compared to a net loss of $198,275, or ($0.01) per diluted share, in the previous quarter. This compared to $102,500, or ($0.02) per diluted share, in the year-earlier period. The diluted weighted average common shares outstanding for the three months ended January 31, 2005 were 37,638,462 shares compared to 6,226,484 shares in the year-earlier period.

For the first nine months of fiscal 2005, total revenue climbed to $2,093,123, compared to $345,873 (+505%) in the corresponding period in fiscal 2004. Net loss for the first nine months of fiscal 2005 was $478,235, or ($0.01) per diluted share, compared to a net loss of $143,961, or ($0.03) per diluted share, in the corresponding period in fiscal 2004.

Software sales for the quarter totaled $838,163 compared to $653,618 for the quarter ended October 31, 2004, a 28% increase quarter-over-quarter. This compared to $6,820 in the year-earlier period ended January 31, 2004. For the nine-month period, software sales were $1,958,432 compared to $228,281 in the year-earlier period.

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