Voiceserve Shows Major Growth in Q2-Q3 While Solidifying Itself as Leading Internet Telephony Software and Service Provider

 Voiceserve, Inc. (OTCBB:VSRV), the premier, low-cost, cutting-edge Internet telephony software and service provider, posted an increase of 20.3 percent in revenues in the last 6 months.

For the three and six months ended September 30, 2012 and 2011 we generated revenues of $1,242,321, $2,623,439, $1,008,858, and $2,181,514, respectively. The change represents an increase of $441,925 or 20.3% for the six months ended September 30, 2012, and $233,463 or 23.1% for the three months ended September 30, 2012. The revenue increase is attributed to the exposure of the company's products through exhibitions as well as the reputational success the products are having in the market place.

For the three and six months ended September 30, 2012 and 2011 the cost of revenues were $693,717, $1,470,585, $507,784, and $1,244,550 respectively. The change represents an increase in cost of revenues of $226,035 or 18.2% for the six months ended September 30, 2012, and $185,933 or 36.6% for the three months ended September 30, 2012. The cost of revenue increase is attributed to the increase in clients that require servicing. Gross margin averaged 43.9% during the six month of ending September 30, 2012 compared to 43.0% during the six months ending September 30, 2011, and 44.2% during the six month of ending September 30, 2012 compared to 50.0% during the six months ending September 30, 2011. The increase in gross margins is due to the company's ability to not have to discount as much to win business. The revenue increase is attributed primarily to the exposure of the company's products through exhibitions as well as the reputational success the products are having in the market place.

For the three and six months ended September 30, 2012 and 2011 the SG&A was $828,653, $2,639,880, $780,379, and $2,330,905, respectively. The change represents an increase of $48,274 or 6.2% and $308,975 or 13.3% for the three and six months ended September 30, 2012, respectively. The increase in SG&A was due to higher stock-based compensation costs in the three and six months to September 30, 2012 versus the three and six months to September 30, 2011. The group has made some conscious cost savings in a number of areas recently.

"Once again we are showing steady growth over the last half year highlighted by gains in all geographic regions and product categories with demand continuously growing. Our growth strategies have yielded very satisfactory financial results year-to-date and position Voiceserve for continued expansion in 2013 and beyond. We enter the fourth quarter with strong momentum, especially in the US where we are swiftly building a powerful distribution network for our expanding portfolio," commented Mr. Alexander Ellinson president of Voiceserve Inc.

About Voiceserve, Inc.

Voiceserve is a software platform provider focusing primarily on delivering affordable, complete, next generation services to Internet Telephony Providers (ITSPs). Products include VoipSwitch, a custom modular all-in-one Voice over Internet Protocol (VoIP) management platform licensing solution for resellers.

For further information please visit http://www.voipswitch.com.

Certain statements in this news release may constitute "forward-looking" statements within the meaning of section 21E of the Securities and Exchange Act of 1934. The Company believes that its expectations, as expressed in these statements are based on reasonable assumptions regarding the risks and uncertainties inherent in achieving those expectations. These statements are not, however, guarantees of future performance and actual results may differ materially. Risks and uncertainties which may cause actual results to be different than expressed or implied in our forward-looking statements include, but are not limited to, the risk factors listed in the most recent Annual Report on Form 10-K and described under the heading "Risk Factors" our Form S-1 filed December 20, 2010. The Company expressly disclaims any current intention to update any forward-looking statements as a result of new information or future events or developments.

Contacts: North 6th Agency, Inc. (for Voiceserve) [e-mail] www.voipswitch.com