PRESS RELEASEdeltathree Reports Second Quarter 2011 Financial ResultsNew York, NY – August 4, 2011 – deltathree, Inc. (OTCQB: DDDC), a global provider of video and voice over Internet Protocol (VoIP) telephony services, products, hosted solutions and infrastructures for service providers, resellers and direct consumers, today announced financial results for the second quarter 2011 ended June 30, 2011.

Mr. Effi Baruch, Chief Executive Officer, President and Senior Vice President of Operations and Technology of deltathree, stated, “While deltathree continues to make good progress with the rollout of our international mobile VoIP offerings, with better than expected customer ramps and usage, our second quarter financial results were negatively impacted by a material drop in activity from our VoIP reseller customers based in the Middle East, caused in large part by the recent geopolitical uncertainty in the region. If we exclude the contribution from reseller client activity in the Middle East from the results of this quarter and the corresponding period in 2010, deltathree saw year