Dialogic Eliminates Debt-Related Covenants Through 2013

  Dialogic Eliminates Debt-Related Covenants Through 2013

                Secures additional $4.5 million debt financing

Business Wire

MILPITAS, Calif. -- February 12, 2013

Dialogic Inc. (Nasdaq:DLGC), the Network Fuel™ company, today announced that
it has entered into amendments to its credit agreements with both Tennenbaum
Capital Partners, LLC (“TCP”) and Wells Fargo Foothill Canada ULC (“WFFC”). As
part of the amendments TCP and WFFC have agreed to eliminate all financial
covenants under the credit agreements through 2013. Dialogic has also secured
an additional $4.5 million in debt financing from TCP. The proceeds of the
financing will be used to fund initiatives that will save an estimated $12-$14
million of operating expense in 2013 as well as to accelerate investment in
sales and marketing activities.

“We are pleased to have completed this deal for growth capital with TCP,” said
Kevin Cook, President and CEO of Dialogic. “This financing is another step
forward for the company as we position Dialogic to better serve its Service
Provider and Application Development partners while building long-term value
for our shareholders. Separately, by eliminating the financial covenants
though 2013, the company has the financial flexibility to enable our key
strategic initiatives to build momentum in the marketplace.“

About Dialogic

Dialogic (Nasdaq:DLGC), the Network Fuel™ company, inspires the world’s
leading service providers and application developers to elevate the
performance of media-rich communications across the most advanced networks. We
boost the reliability of any-to-any network connections, supercharge the
impact of applications and amplify the capacity of congested networks.
Forty-eight of the world’s top 50 mobile operators and nearly 3,000
application developers rely on Dialogic to redefine the possible and exceed
user expectations. For more information on Dialogic and the communications
solutions we energize, visit www.dialogic.com and www.dialogic.com/showcase.

This press release does not and shall not constitute an offer to sell or the
solicitation of any offer to buy any of these securities.

The foregoing summarizes certain terms of various agreements entered into by
Dialogic, does not purport to be complete and is qualified in its entirety by
reference to Exhibits4.1, 10.1, 10.2 and 10.3 attached to the Form 8-K filed
yesterday by Dialogic with respect to the transaction referenced above. For
more information please refer to the 8K document itself.

This press release may contain forward-looking statements regarding future
events that involve risks and uncertainties. Readers are cautioned that these
forward-looking statements are only predictions and may differ materially from
actual future events or results. These forward-looking statements involve
risks and uncertainties, as well as assumptions that if they do not fully
materialize or prove incorrect, could cause our results to differ materially
from those expressed or implied by such forward-looking statements. The risks
and uncertainties that could cause our results to differ materially from those
expressed or implied by such forward-looking statements include but are not
limited to our relationship with our lenders, our ability to achieve results
going forward, ability to achieve operational savings, our financial position
and other risks and uncertainties described more fully in our documents filed
with or furnished to the SEC. More information about these and other risks
that may impact Dialogic's business is set forth in the "Risk Factors" section
in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2012,
filed with the SEC. These filings are available on a website maintained by the
SEC http://www.sec.gov/. All forward-looking statements in this press release
are based on information available to us as of the date hereof, and we assume
no obligation to update these forward-looking statements.

Dialogic is a registered trademark of Dialogic Inc. or a subsidiary. All other
company and product names may be trademarks of the respective companies with
which they are associated. (DLGC- IR)

Contact:

Investor Relations:
Dialogic Inc.
Andrew Goldberg, SVP, Marketing & Strategy
973-967-6425
andrew.goldberg@dialogic.com
 
Press spacebar to pause and continue. Press esc to stop.