[2] Nitsuko Begins Shipping AltiGen OEM Product in the US and Japan; Global Partnership Between Nitsuko And AltiGen Brings Leading Edge Technology To World Class Telephony Supplier.

FREMONT, Calif.--(BUSINESS WIRE)--Nov. 22, 1999--

In a powerful global partnership, AltiGen Communications, Inc. (Nasdaq:ATGN), a leading provider of computer telephony (CT) solutions, and Nitsuko Corporation, a worldwide manufacturer and distributor of telecommunications systems and affiliate of NEC, announced today the launch of OEM sales in the US and Japanese markets. This launch is the fruition of a joint development and OEM agreement, enabling Nitsuko channels to sell specific versions of AltiGen's market-leading server-based PBX phone systems and take advantage of new technology market opportunities in the rapidly expanding VoIP and CTI markets.

In the US and Canada the system is being offered by Nitsuko America and is sold as the Nitsuko Communications Server (NCS). NCS is distributed by Nitsuko America's top ranking dealers, representing a network of over 250 established telephony providers.

In the Japanese market, the system is marketed as the Nitsuko Telecom Server; it is fully homologated to meet Japanese market requirements. Through a joint development project, the Telecom Server also features ISDN connectivity, PHS wireless integration, and LAN routing capability specifically targeted to meet the emerging needs of Japanese business environments.

Both systems target the small-to-medium size business community and enterprise branch offices. These offerings are based upon AltiGen's AltiServ(R) platform, providing customers with a full featured Windows/NT(R) server-based PBX that is affordable, flexible and highly scalable. In addition to basic features such as PBX, corporate-strength voicemail, auto attendant and automatic call distribution (ACD), these systems also provide more advanced functionality such as an integrated VoIP gateway, extensive "follow me" features, client call control, Internet integration and unified messaging with support for Microsoft(R) Exchange(R).

Opportunities presented by the emerging VoIP and CTI markets gave impetus to the partnership. The advanced technologies developed by AltiGen made them the partner of choice to team with Nitusuko's proven expertise in digital business communication systems. These technologies are a clear benefit for companies with multiple locations. They can seamlessly connect via VoIP whilst utilizing advanced features, all on a single platform.

"This represents significant cost savings for our customers, as they can utilize data links which they usually already have in place", says Al Kelley, VP Sales, Nitsuko America. "By offering VoIP branch office solutions, our channel base can increase their reach, entering into markets they weren't easily able to tap into before. This represents money in the bank."

Driving this point home is Nitsuko dealer AC & N, Inc., whose representative Angela Williams says, "We expect that our sales will more than double with the Nitsuko-NCS system. We see a whole span of customers who want more features than most traditional systems can offer and now we have something that satisfies their needs. The number of businesses, who want ACD, voicemail, CTI applications, even VoIP, but have smaller budgets, are tremendous. Typically, they would be priced out of the market, placing these features out of their reach. But with this system, we can provide them with all of the advanced feature sets at a highly affordable price."

"This partnership cements Nitsuko's proven track record of providing customer satisfaction, and sales excellence with AltiGen's advanced technology offerings", said Anthony Spielman, AltiGen's VP of Marketing. "Furthermore, we see this ongoing relationship as a key milestone in mainstream acceptance of these new technologies, and the expansion of AltiGen's channel reach to a wider customer base".

AltiGen Background

AltiGen Communications, Inc., is the leader in the server-based telecommunications system market. AltiGen designs, manufactures, and markets next generation, server-based telecommunications systems that use both the Internet and the public telephone network to enable an array of applications that take advantage of the convergence of voice and data communications.

AltiGen products are fully Y2K compliant, are available from authorized resellers and come with a one-year warranty. AltiGen's AltiServ(R) has been recognized for excellence with more than two dozen industry awards, including a 1999 Editor's Choice Award from PC Magazine and a 1998 Analyst's Choice Award from PC Week Magazine. For more information, call 1-888-ALTIGEN or visit the website at www.altigen.com.

Nitsuko Corporation Background

Nitsuko has been a leading designer and producer of telecommunications equipment since 1918 and has grown into a diversified corporation with sales in excess of $800 million worldwide. They are part of the NEC consolidated group are a leading supplier to NTT, Japan's premier telecommunications provider. Nitsuko America's sophisticated; award winning business communication systems includes the I-Series, Portrait 308/824, DS01 and NVM-Series Voice Mail. Nitsuko America can be found on the web at http://www.nitsuko.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements regarding AltiGen leveraging its leadership in multimedia (including voice) over Internet protocol solutions to rapidly expand into new product areas. These statements reflect management's current expectations. However, actual results could differ materially as a result of unknown risks and uncertainties, including but not limited to, risks related to AltiGen's limited operating history. For a more detailed description of these and other risks and uncertainties affecting AltiGen's performance, please refer to the information set forth under the caption "Risk Factors" in the final prospectus dated October 4, 1999 related to AltiGen's initial public offering, a copy of which can be obtained from CIBC World Markets, Oppenheimer Tower, World Financial Center, New York, New York; telephone number [phone].