8x8 Ships 500,000th Video Conferencing Chip; Accelerating Shipments of Video Conferencing Chips Heralds Expansion of Video Communications Market.

ANAHEIM, Calif.--(BUSINESS WIRE)--Nov. 4, 1997--8x8, Inc. (NASDAQ:EGHT) -- a leading supplier of video conferencing technology and systems -- announced today at the Telecom tradeshow here that it has recently shipped its 500,000th video conferencing chip.

8x8 has a family of video communications chips, all based on 8x8 proprietary Video Communications Processor (VCP) architecture. The VCP was the first integrated circuit targeted at the video conferencing marketplace to use a dual-programmable architecture, combining both a RISC microprocessor and a digital signal processor (DSP) on a single piece of silicon. The VCP is the processor of choice for video conferencing systems manufacturers worldwide, including PictureTel, Vtel, Tandberg, Sony, Siemens, Aethra, VCON, SAT, Canon, Matsushita, NEC, Mitsubishi, Fujitsu, Samsung, and LG Electronics.

The VCP is suitable for all videoconferencing applications, including digital telephone lines (ISDN), standard telephone lines (POTS) and computer networks (LAN/Internet). The VCP supports all of the ITU standards for video communication, including the H.320, H.324 and H.323 standards.

The VCP can operate at an internal clock speed of up to 72MHz, making it the fastest and most powerful processor specifically designed for videoconferencing applications. 8x8 supplies video conferencing software for the VCP that takes full advantage of the device's architecture and flexibility to provide superior video and audio quality with minimal end-to-end delay.

The power, flexibility and programmability of a single VCP chip enables 8x8 to deliver 30 frames-per-second video performance over high bandwidth ISDN telephone lines. The same VCP forms the core of 8x8's line of ViaTV videophones, which operate over POTS telephone lines. In POTS applications, a single VCP implements video and audio compression, full-duplex echo cancellation, communication protocols and the graphical user interface, making it the only single-chip H.324 videophone solution available today.

"8x8's chip customers benefit as 8x8 develops full system solutions utilizing the VCP. It's a built-in advantage for them," said Keith Barraclough, 8x8's president and COO. "Our ViaTV Videophone and reference designs keep us focused on the quality, cost effectiveness, interoperability and usability issues that directly impact end-users. The reference designs let our chip customers get to market fast with a great feature set at the lowest possible cost. By surpassing the half-million unit shipment mark, 8x8 has established the viability of low-cost video conferencing independent of the personal computer."

About 8x8

8x8, Inc. is a manufacturer of video conferencing systems, semiconductors and software. 8x8's ViaTV Videophone systems provide low-cost videophone solutions by connecting 8x8's ViaTV to a consumer's existing television and touch-tone phone. The ViaTV uses simple on screen menus activated from the touch-tone keypad, so no extra remote control is necessary. No special phone line is required, and there are no extra charges to make a video call. All ViaTVs include snapshot, pan/tilt/zoom, auto answer and caller ID.

ViaTV models with web browsing and e-mail capability are also available. The ViaTV line includes models with and without built-in video cameras. Cameraless models can be used with camcorders and digital still cameras to simultaneously deliver motion video and stored snapshots. ViaTVs are priced from $329 and are available at Staples, CompUSA, Fry's Electronics, J&R Computer World, FutureShop, GTE PhoneMarts and other retailers, including catalog merchants. 8x8 is headquartered in Santa Clara, California. For more information please call toll free 888/VIEW-8X8.

CONTACT: 8x8, Inc.

Scott St. Clair, 408/727-1885

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Donna Austi, 212/320-2288

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