Interwise, Inc., a leading provider of converged, IP-based conferencing software solutions for enterprises, and Challenge Fund II Portfolio Company, announced the signing of a definitive agreement to be acquired by AT&T Inc., through one of its subsidiaries, for $121 million in cash on an enterprise value basis. The transaction is expected to close in the fourth quarter of 2007.

The Transaction strategically aligns Interwise's IP-based conferencing and collaboration solution with AT&T's enterprise networking, communications and collaboration services, global MPLS-based IP network and its leading conferencing portfolio of services. Together, AT&T and Interwise will be able to more quickly develop and bring to market capabilities to address the evolving collaboration and communications needs of businesses around the world.