Ditech Networks and Lamassu Holdings LLC Settle Proxy Contest

Ditech Networks (NASDAQ:DITC), a global leader in mobile voice processing solutions, today announced that it has settled with Lamassu Holdings LLC on nominees to the company’s Board of Directors. Under the terms of the settlement, the company has agreed to nominate Frank Sansone, Lamassu Holding’s candidate and Alan B. Howe, an experienced industry veteran, as new directors.

In view of the settlement agreement with Lamassu and the termination of the proxy contest, Mr. Greg Avis, who has served on the company’s board of directors since 1997, and Mr. Andrei Manilou, who has served on the company’s board of directors since 2000, have announced they will retire from the board of directors and will not stand for re-election.

About Ditech Networks

Ditech Networks is revolutionizing modern communications with advanced voice processing solutions that perform tasks spanning from voice-enabled Web 2.0 and unified communications services to voice quality enhancement. Ditech believes in the power and simplicity of human speech; its solutions deliver high-quality voice communication and will enable compelling voice capabilities to new communications methods like social networking and text messaging, allowing consumers to use voice in ways that make sense in today's Web 2.0-savvy world.

Ditech Networks, Voice Quality Assurance, Quad Voice Processor, and Broadband Voice Processor are trademarks or registered trademarks of Ditech Networks, Inc. All other trademarks are the property of their respective owners.