Orascom Telecom Chooses Ditech Networks VQA™

New Deployment Builds Upon Partnership Between Ditech and Orascom and Expands Asian Presence for Ditech Networks

Mountain View, California, February 12, 2007 – Ditech Networks, Inc. (Nasdaq: DITC), a leader in the development of voice processing solutions for mobile networks, announced today that Orascom Telecom Holding S.A.E, a leading international telecom company operating in numerous emerging markets, has selected Ditech Networks’ solutions for deployment in Banglalink, its GSM network in Bangladesh. The new deployment reaffirms Orascom Telecom’s commitment to making Banglalink a mobile communications leader and enhances Ditech’s already-significant international presence with new deployments in Southern Asia.

Orascom Telecom chose Ditech’s VQA™ voice quality technology, embedded on its Quad Voice Processor™ (QVP™) platform, to improve voice capacity utilization and to deliver enhanced voice quality to subscribers across the Banglalink network.

“We chose Ditech Networks’ QVP platform solution for its suite of network-specific features that enhance call quality while improving our capacity utilization,” said Tamer El Mahdy, Chief Technology Officer of Orascom Telecom Holding. “Our past deployments of Ditech’s VQA solution have enabled us to deliver enhanced voice quality and to increase our customer satisfaction, and we wish to continue a tradition of success as we expand operations with Banglalink.”

Ditech QVP systems represent a full line of advanced voice processors for mobile networks, which enable mobile service providers to reduce capacity expansion costs while improving voice quality. GSM Half-Rate vocoders provide an economical channel capacity solution, but their use is often limited because they are associated with degraded voice quality. The Ditech QVP system with VQA technology, with its suite of noise and echo cancellation functions and other voice enhancement features, improves the sound of both Half-Rate and Full-Rate calls for enhanced customer satisfaction.

“We are gratified by Orascom Telecom’s continued confidence in Ditech solutions and its choice of the QVP platform with our VQA technology for Banglalink,” said Tim Montgomery, president and chief executive officer of Ditech Networks. “We believe that call quality is a significant differentiator for mobile operators and are excited that our technology will play an important role in expanding high-quality mobile communications to new subscribers in a rapidly growing market.”

About Orascom Telecom Holding

Orascom Telecom is a leading international telecommunications company operating GSM networks in seven high growth markets in the Middle East, Africa and South Asia, having a total population under license of approximately 460 million with an average mobile telephony penetration of approximately 22% as at 30 September 2006. Orascom Telecom operates GSM networks in Algeria ("OTA"), Pakistan ("Mobilink"), Egypt ("Mobinil"), Tunisia ("Tunisiana"), Iraq ("Iraqna"), Bangladesh ("Banglalink"), and Zimbabwe ("Telecel Zimbabwe").

Orascom Telecom had over 50 million subscribers as at December 2006. Orascom Telecom owns 19.3% of Hutchison Telecommunications International Limited, a leading telecommunication services provider operating in eight countries.

Orascom Telecom is traded on the Cairo & Alexandria Stock Exchange under the symbol (ORTE.CA, ORAT EY), and on the London Stock Exchange its GDR is traded under the symbol (ORTEq.L, OTLD LI).

About Ditech Networks

Ditech Networks supplies voice processing equipment for telecommunication networks around the world. Ditech Networks' solutions incorporate advanced voice processing, Session Initiation Protocol (SIP), and security technologies delivered on carrier-grade scalable platforms to enhance the delivery of communications services over mobile, Voice over IP, and wireline networks. Ditech Networks' customers are premier network operators including Verizon Wireless, Sprint/Nextel, Orascom Telecom, and others that collectively serve more than 150 million subscribers. Ditech Networks is headquartered in Mountain View, California. For more information, visit www.ditechnetworks.com.