Exhibit 1

P R E S S   R E L E A S E

Company Contacts		IR Agency Contact
Nachum Falek,	Shirley Nakar,	Erik Knettel,
VP Finance & CFO	Director, Investor Relations	The Global Consulting Group
AudioCodes	AudioCodes	Tel: +1-646-284-9415
Tel: +972-3-976-4000	Tel: +972-3-976-4000	eknettel@hfgcg.com
nachum@audiocodes.com	shirley.nakar@audiocodes.com

AudioCodes Reports Second Quarter 2007 Results

Quarterly Revenues up 5.2% Sequentially and 15.5% Year-over-Year

Lod, Israel – August 6, 2007 – AudioCodes (NASDAQ: AUDC), a leading provider of Voice over Packet (VoP) technologies and Voice Network products, today announced financial results for the second quarter ended June 30, 2007.

Revenues for the second quarter were $38.4 million compared to $36.5 million for the quarter ended March 31, 2007 and $33.3 million for the quarter ended June 30, 2006. Second quarter revenues increased 5.2% compared to the quarter ended March 31, 2007 and increased 15.5% compared to the second quarter of 2006.

GAAP net loss was $1.0 million, or $0.02 per diluted share, for the second quarter of 2007 compared to a net loss of $2.4 million, or $0.06 per diluted share, for the first quarter of 2007 and net income of $3.3 million, or $0.07 per diluted share, for the second quarter of 2006.

Non-GAAP net income was $1.4 million, or $0.03 per diluted share, in the second quarter of 2007 compared to $506,000, or $0.01 per diluted share, in the first quarter of 2007 and $5.1 million, or $0.11 per diluted share, in the second quarter of 2006. Non-GAAP net income excludes stock-based compensation and amortization expenses related to the Nuera, Netrake and CTI Squared LTD (“CTI Squared”) acquisitions. A reconciliation between net income on a GAAP basis and non-GAAP net income is provided in the tables that accompany the condensed consolidated financial statements contained in this release.

Cash and cash equivalents, short-term and long-term marketable securities, short-term and long-term bank deposits and structured notes were $130.5 million as of June 30, 2007 compared to $132.6 million as of March 31, 2007. In April 2007, the Company made a $5 million cash payment in connection with its acquisition of CTI Squared.

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“AudioCodes’ second quarter financial results were highlighted by our return to sequential revenue growth coupled with continued strength in our networking business. Our networking business grew over 10% sequentially in the second quarter and more than 30% compared to the second quarter of 2006, with increased penetration of leading service providers, OEMs and enterprise customers worldwide. Underscoring our strong performance was our ability to generate $2.7 million of net cash from our operating activities. During the quarter we made solid progress towards increasing operating efficiencies and initiated a company wide cost reduction program aimed at improving bottom line performance during the second half of 2007 and beyond,” stated Shabtai Adlersberg, Chairman, President and CEO of AudioCodes.

“Our financial achievements were complemented by introducing new products for the session border control market, success in growing our mid-density media gateway sales, and completion of the acquisition of CTI Squared, a provider of enhanced messaging and communications platforms. The addition of CTI Squared to our existing suite of media server offerings further demonstrates our strategy of becoming an important and trusted supplier of converged IP communications products to service providers worldwide. New design wins in the quarter further enhance our confidence in our ability to continue our success in emerging VoIP opportunities in the broadband, wireless, IMS and fixed-mobile-convergence markets,” concluded Mr. Adlersberg.

Conference Call & Webcast Information

AudioCodes will conduct a conference call on Tuesday, August 7, 2007 to discuss the second quarter 2007 financial results, which will be simultaneously Webcast at 9:00 A.M. Eastern Time. Investors are invited to listen to the call live via Webcast at the investor relations section of the AudioCodes corporate Website at www.audiocodes.com.

About AudioCodes

AudioCodes (NASDAQ: AUDC) provides innovative, reliable and cost-effective Voice over IP (VoIP) technology, Voice Network Products, and Value Added Applications to Service Providers, Enterprises, OEMs, Network Equipment Providers and System Integrators worldwide. AudioCodes provides a diverse range of flexible, comprehensive media gateway, and media processing enabling technologies based on VoIPerfect™ – AudioCodes’ underlying, best-of-breed, core media architecture. The company is a market leader in VoIP equipment, focused on VoIP Media Gateway, Media Server, Session Border Controllers (SBC), Security Gateways and Value Added Application network products. AudioCodes has deployed tens of millions of media gateway and media server channels globally over the past ten years and is a key player in the emerging best-of-breed, IMS based, VoIP market. The Company is a VoIP technology leader focused on quality and interoperability, with a proven track record in product and network interoperability with industry leaders in the Service Provider and Enterprise space. AudioCodes Voice Network Products feature media gateway and media server platforms for packet-based applications in the converged, wireline, wireless, broadband access, cable, enhanced voice services, video, and Enterprise IP Telephony markets. AudioCodes’ headquarters are located in Israel with R&D in the U.S. Other AudioCodes’ offices are located in Europe, India, the Far East, and Latin America. For more information on AudioCodes, visit http://www.audiocodes.com.

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Statements concerning AudioCodes’ business outlook or future economic performance; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are “forward-looking statements” as that term is defined under U.S. Federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: the effect of global economic conditions in general and conditions in AudioCodes’ industry and target markets in particular; shifts in supply and demand; market acceptance of new products and continuing products’ demand; the impact of competitive products and pricing on AudioCodes’ and its customers’ products and markets; timely product and technology development/upgrades and the ability to manage changes in market conditions as needed; possible disruptions from acquisitions; the integration of acquired companies’ products and operations into AudioCodes’ business; and other factors detailed in AudioCodes’ filings with the Securities and Exchange Commission. AudioCodes assumes no obligation to update the information in this release.

© 2007 AudioCodes Ltd. All rights reserved, AudioCodes, AC, Ardito, AudioCoded, NetCoder, TrunkPack, VoicePacketizer, MediaPack, Stretto, Mediant, VoIPerfect and IPmedia, OSN, Open Solutions Network, What’s Inside Matters, Your Gateway To VoIP, 3GX and Nuera, Netrake, InTouch, CTI² and CTI Squared are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners.

Summary financial data follows

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AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

	June 30, 2007		December 31, 2006
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	52,387	$	25,171
Short-term bank deposits and structured notes		3,700		28,658
Short-term marketable securities and accrued interest		25,425		29,422
Trade receivables, net		25,492		30,501
Other receivables and prepaid expenses		3,818		3,309
Inventories		19,822		16,093
Total current assets		130,644		133,154
LONG-TERM INVESTMENTS:
Long-term bank deposits and structured notes		42,011		30,435
Long-term marketable securities		6,987		19,942
Investments in companies		2,440		3,999
Deferred tax assets		4,089		3,742
Severance pay funds		8,319		7,231
Total long-term investments		63,846		65,349
PROPERTY AND EQUIPMENT, NET		7,492		7,847
INTANGIBLE ASSETS, DEFERRED CHARGES AND OTHER, NET		21,084		21,853
GOODWILL		119,855		108,853
Total assets	$	342,921	$	337,056
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables	$	8,018	$	7,522
Other payables and accrued expenses		29,152		28,139
Total current liabilities		37,170		35,661
DEFERRED TAX LIABILITIES		7,203		7,780
ACCRUED SEVERANCE PAY		9,559		7,915
SENIOR CONVERTIBLE NOTES		121,106		121,015
Total shareholders' equity		167,883		164,685
Total liabilities and shareholders' equity	$	342,921	$	337,056

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AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

In thousands, except per share data

	Six months ended June 30,					Three months ended June 30,
	2007			2006		2007			2006
	(Unaudited)					(Unaudited)
Revenues	$	74,987		$	64,629	$	38,444		$	33,295
Cost of revenues		32,881			26,257		16,906			13,564
Gross profit		42,106			38,372		21,538			19,731
Operating expenses:
Research and development, net		20,381			14,544		10,345			7,255
Selling and marketing		21,750			16,180		10,910			8,105
General and administrative		4,726			3,698		2,171			1,888
Total operating expenses		46,857			34,422		23,426			17,248
Operating income (loss)		(4,751	)		3,950		(1,888	)		2,483
Financial income, net		1,270			2,352		766			1,243
Equity in losses of affiliated companies		533			386		204			213
Income (loss) before taxes on income		(4,014	)		5,916		(1,326	)		3,513
Income taxes (tax benefit)		(602	)		386		(290	)		260
Net income (loss)	$	(3,412	)	$	5,530	$	(1,036	)	$	3,253
Basic net earnings (loss) per share	$	(0.08	)	$	0.13	$	(0.02	)	$	0.08
Diluted net earnings (loss) per share	$	(0.08	)	$	0.13	$	(0.02	)	$	0.07
Weighted average number of shares used in computing basic
net earnings (loss) per share		42,416			41,401		42,519			41,753
Weighted average number of shares used in computing
diluted net earnings (loss) per share		42,416			44,089		42,519			44,241

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AUDIOCODES LTD. AND ITS SUBSIDIARIES

NON-GAAP PROFORMA STATEMENTS OF OPERATIONS

In thousands, except per share data

	Six months ended June 30,				Three months ended June 30,
	2007		2006		2007		2006
	(Unaudited)				(Unaudited)
Revenues	$	74,987	$	64,629	$	38,444	$	33,295
Cost of revenues *) **)		31,171		26,005		16,025		13,446
Gross profit		43,816		38,624		22,419		19,849
Operating expenses:
Research and development, net *)		18,795		13,178		9,594		6,597
Selling and marketing *) **)		19,363		14,586		9,764		7,364
General and administrative *)		4,370		3,023		2,160		1,569
Total operating expenses		42,528		30,787		21,518		15,530
Operating income		1,288		7,837		901		4,319
Financial income, net		1,270		2,352		766		1,243
Equity in losses of affiliated companies		533		386		204		213
Income before taxes on income		2,025		9,803		1,463		5,349
Income taxes, net **)		136		386		80		260
Non-GAAP net income	$	1,889	$	9,417	$	1,383	$	5,089
Non-GAAP diluted net earnings per share	$	0.04	$	0.21	$	0.03	$	0.11
Weighted average number of shares used in computing
non-GAAP diluted net earnings per share		43,664		50,770		43,481		50,922

*) Excluding stock-based compensation expenses related to options granted to employees and others as a result of the adoption of SFAR 123R as of January 1, 2006.

**) Excluding amortization of intangible assets related to the acquisitions of Nuera and Netrake during the third quarter of 2006 and to the acquisition of CTI Squared during the second quarter of 2007.

Note: Non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP. The Company believes that non-GAAP information is useful because it can enhance the understanding of its ongoing economic performance and therefore uses internally this non-GAAP information to evaluate and manage its operations. The Company has chosen to provide this information to investors to enable them to perform comparisons of operating results in a manner similar to how the Company analyzes its operating results and because many comparable companies report this type of information as well.

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AUDIOCODES LTD. AND ITS SUBSIDIARIES

RECONCILIATION BETWEEN GAAP NET INCOME AND NON-GAAP NET INCOME

In thousands, except per share data

	Six months ended June 30,					Three months ended June 30,
	2007			2006		2007			2006
	(Unaudited)					(Unaudited)
GAAP Net income (loss)	$	(3,412	)	$	5,530	$	(1,036	)	$	3,253
GAAP Diluted earnings (loss) per share	$	(0.08	)	$	0.13	$	(0.02	)	$	0.07
Cost of revenues:
Stock-based compensation (*)		331			252		161			118
Amortization expenses(**)		1,379			-		720			-
		1,710			252		881			118
Research and development, net:
Stock-based compensation (*)		1,586			1,366		751			658
Selling and marketing:
Stock-based compensation (*)		1,865			1,594		885			741
Amortization expenses(**)		522			-		261			-
		2,387			1,594		1,146			741
General and administrative:
Stock-based compensation (*)		356			675		11			319
Income tax effect(**)		(738	)		-		(370	)		-
Non- GAAP Net income	$	1,889		$	9,417	$	1,383		$	5,089
Non-GAAP Diluted earnings per share	$	0.04		$	0.21	$	0.03		$	0.11

*) Stock-based compensation expenses related to options granted to employees and others as a result of the adoption of SFAR 123R as of January 1, 2006.

**) Amortization of intangible assets related to the acquisitions of Nuera and Netrake during the third quarter of 2006 and to the acquisition of CTI Squared during the second quarter of 2007.

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AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

U.S. dollars in thousands

	Six months ended June 30,						Three months ended June 30,
	2007			2006			2007			2006
	(Unaudited)						(Unaudited)
Cash flows from operating activities:
Net income (loss)	$	(3,412	)	$	5,530		$	(1,036	)	$	3,253
Adjustments required to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		4,049			1,724			1,975			856
Net loss from sale of marketable securities		-			15			-			-
Amortization of marketable securities premiums
and accretion of discounts, net		53			121			17			61
Equity in losses of affiliated companies		533			386			204			213
Increase (decrease) in accrued severance pay, net		227			71			(21	)		(58	)
Stock-based compensation expenses		4,138			3,887			1,808			1,836
Amortization of senior convertible notes
discount and deferred charges		100			99			50			50
Increase in accrued interest on marketable
securities, bank deposits and structured notes		(319	)		(251	)		(206	)		(265	)
Decrease (increase) in deferred tax assets		(347	)		(209	)		(210	)		96
Decrease (increase) in trade receivables, net		5,126			(1,964	)		1,980			(2,035	)
Decrease (increase) in other receivables and
prepaid expenses		(633	)		(904	)		272			(554	)
Increase in inventories		(3,729	)		(1,815	)		(1,791	)		(357	)
Increase (decrease) in trade payables		432			1,025			(1,011	)		2,702
Increase (decrease) in other payables and
accrued expenses		(4,811	)		614			1,048			(15	)
Decrease in deferred tax liabilities		(734	)		-			(367	)		-
Net cash provided by operating activities		673			8,329			2,712			5,783
Cash flows from investing activities:
Proceeds from sale and maturity of marketable
securities		16,600			1,979			7,800			1,000
Proceeds from sale of bank deposits		25,000			23,000			-			5,791
Investments in companies		(538	)		(2,115	)		(338	)		(978	)
Payment for acquisition of CTI Squared*)		(4,897	)		-			(4,397	)		-
Purchase of property and equipment		(1,352	)		(996	)		(474	)		(537	)
Investment in long-term deposit		(11,000	)		-			(11,000	)		-
Net cash provided by (used in) investing activities		23,813			21,868			(8,409	)		5,276

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AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (Cont.)

U.S. dollars in thousands

	Six months ended June 30,				Three months ended June 30,
	2007		2006		2007			2006
	(Unaudited)				(Unaudited)
Cash flows from financing activities:
Proceeds from issuance of shares upon exercise of
options and employee stock purchase plan		2,730		7,359		255			1,044
Net cash provided by financing activities		2,730		7,359		255			1,044
Increase (decrease) in cash and cash equivalents		27,216		37,556		(5,442	)		12,103
Cash and cash equivalents at the beginning of the
period		25,171		70,957		57,829			96,410
Cash and cash equivalents at the end of the period	$	52,387	$	108,513	$	52,387		$	108,513

*)Excluding cash and cash equivalents

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