As of September 30, 8x8 had approximately 26,000 activated Packet8 subscriber lines in service as compared to approximately 17,000 at June 30, 2004, a 53% increase. Total revenues for the Company's Packet8 VoIP service and related equipment sales increased to $2.1 million for the quarter ended September 30, 2004, compared with $1.4 million for the first quarter of fiscal 2005, an increase of 50%. http://www.8x8.com