8x8 Changes Name to Netergy Networks; Name Change Signifies Company's Focus on IP Telephony.

Business Editors

SANTA CLARA, Calif.--(BUSINESS WIRE)--March 27, 2000

8x8, Inc. (Nasdaq:EGHT), a leading supplier of highly integrated IP telephony solutions, today announced that, subject to shareholder approval, it will change its name to Netergy Networks, Inc. The name change is the culmination of a strategic transition to IP telephony that began in late 1998 with the announcement of the Audacity(TM) Internet Telephony Processor and that continues today with the introduction of the Netergy(TM) Advanced Telephony System (ATS), the first all-IP solution for hosting iPBX services.

"Today we are introducing a company that will play a key role in the convergence of voice and data networks," said Paul Voois, Netergy Networks' chairman and CEO. "The telecommunications industry is undergoing a fundamental transition from circuit-switched to Internet protocol (IP) based networks. We have made a series of decisive strategic decisions in the past 18 months to capitalize on this transition. Our new name is derived from the words `network' and `synergy,' and Netergy Networks is creating synergies out of the convergence of voice and data on IP networks.

"`Netergy Networks' fundamental strength is delivering integrated IP telephony solutions. Few other companies can match our product portfolio, which ranges from embedded voice over IP (VoIP) processors to hosted iPBX servers. Combining these products in a synergistic fashion gives us a significant competitive advantage."

Netergy Networks offers a vertically integrated line of products -- from chips and embedded software to terminal adapter to iPBX hosting(TM) solutions -- that delivers VoIP to the edge of the network. By leveraging the synergies between these products, Netergy Networks can provide its customers, including local exchange carriers, Internet service providers and telecom equipment OEMs, with integrated and feature-rich IP telephony solutions.

"To bring Voice over IP to the edge of the network, inexpensive IP telephones and terminal adapters which offer plug-and-play functionality are essential," noted Keith Barraclough, Netergy Networks' president and COO. "Because they were designed from the ground up for low-cost applications, our chips and embedded software make it possible to meet this requirement. Due to our extensive protocol expertise, we are able to support all of the important communication protocols and vocoders, even translating between protocols or instantiating different protocols in the same device.

"The Netergy iPBX is an edge device," continued Barraclough, "an edge device that every business with over five employees needs. Unlike traditional PBX systems, which were installed on the customer premise, our use of IP technology allows the service provider to offer the PBX as a service, relieving the customer of the expense and complexity of owning and managing their own PBX, and providing them with a scalable, future-proof solution. With the synergies between our technologies, we are able to deliver a completely Netergy-based solution, which will provide terrific advantages when we face competition in the market."

About Netergy Networks

Formerly known as 8x8, Netergy Networks is a leading provider of highly integrated IP telephony solutions to telephone service providers and telecommunication equipment manufacturers. Netergy Networks' IP telephony solutions include network software and systems as well as embedded technology. The company is based in Santa Clara, California. For more information, visit Netergy Networks' web site at www.netergynet.com.

This press release contains forward-looking statements. The actual results of Netergy Networks, Inc. (the "Company"), formerly known as 8x8, Inc., may differ materially from the results discussed, implied or forecasted in these forward-looking statements due to factors including, but not limited to, dependency on the growth of the market for IP telephony products and services, the limits of existing IP telephony technology, rapid technological change, and current and potential competition. Further information on these and other factors that could affect the Company's actual results are included in the Company's Report on Form 10-Q for the quarter ended December 31, 1999, which is on file with the Securities and Exchange Commission. The Company assumes no obligation to revise or update any forward-looking statements contained in this press release.

Note to Editors: Netergy, Netergy logo, iPBX hosting, Media Hub, Audacity and 8x8 are trademarks of Netergy Networks, Inc. All other trademarks are the property of their respective owners.