8x8 Videophone Sets New Low Price Point.

SANTA CLARA, Calif.--(BUSINESS WIRE)--September 23, 1997--

New Modular Videophone Retails for $329, Uses Consumers Existing

Camcorder, TV and Phone for Complete Videophone Solution

8x8, Inc. (NASDAQ: EGHT) a leading supplier of video conferencing technology and systems today announced that it is introducing a videophone solution with a suggested retail price of $329. The new ViaTV Modular Videophone (model VC50) lets consumers use a camcorder, TV and touch-tone telephone to make video calls to family and friends over standard telephone lines. The VC50 also has applications in real estate sales, graphic design, telemedicine, and many other businesses. A personal computer is not required.

The ViaTV Modular Videophone combines with a consumers TV, touch-tone phone and camcorder to form a complete videophone solution. The TV serves as the videophone display, and the touch-tone phone serves as the microphone for the system. The phones keypad and on-screen menus are used to control the videophone. The camcorder plugs into one of the VC50s three audio/video inputs and serves as the systems video camera. Other video accessories, including VCRs, digital still image cameras and document cameras can be plugged into one of the VC50s two other audio/video inputs. Because users can switch video sources during a video call, it is easy to interleave presentations, slide shows or prerecorded videotapes with the live video image from the camcorder.

"We believe the modular videophone concept will further evolve the videophone market in two ways," said Chris McNiffe, 8x8s vice president of sales and marketing. First, the VC50 sets a new consumer price point: a full-function videophone for $329. Second, the VC50 provides remarkable flexibility.

The VC50's ability to transmit high-quality still images in addition to video over standard telephone lines without the need for a personal computer is particularly interesting. People love the immediacy of digital still cameras no film processing time and expense but until now sending your snapshots to others has required a computer. With the VC50, you can show grandma snapshots of the kids on her TV, even if shes thousands of miles away. And the possibilities for business are great too. Real estate, insurance, auto sales: any business that relies on showing the product to the buyer can benefit from the combination of the VC50 and a still-image camera. For example, a realtor might use the VC50 and a digital still image camera or a camcorder to give a home buyer a guided tour of a house by showing digital snapshots or video of each room during a video call.

"It's a tremendous breadth of applications for a device that retails for only $329," concluded McNiffe. "For only $329, the VC50 brings more visual communications power to consumers and businesses than any other video conferencing product in the market."

Other businesses that have been unable to take advantage of visual communication technology, because of the high cost of video conferencing equipment and the limited availability of digital telephone lines, will find the VC50 compelling. "Ad agencies, architects, apparel designers and graphic designers have concepts and illustrations that they need to show to clients," said Rich Surdez, business development manager for Canon USA, Visual Communications Systems, "and a fax machine cannot do justice to a color image. The combination of the VC50 and Canon's Vizcam 1000 document camera is a knock out. With these two cost-effective products, designers and artists can show sharp, clear color pictures of their work to anyone that has a videophone, no matter where in the world they are."

The ViaTV Videophone Family

The ViaTV Modular Videophone joins a growing line of consumer videophones from 8x8. The ViaTV Videophones allow consumers to make full-color motion video calls over standard telephone lines, making ViaTV the first truly functional and practical consumer videophone. With ViaTV, making a video call is as simple as making any phone call. Every call starts as a normal audio call, and when the calling parties are ready, either of them can start video with just two key strokes on the touch-tone phone connected to the unit. A video call costs no more than any local or long distance telephone call, and there are no monthly service or subscription fees.

All ViaTV Videophones have a wide range of features, including electronic pan, tilt and zoom, snapshot, self view, auto answer, and caller ID. Auto answer, in particular, allows the ViaTV to be used as a security or baby monitor, allowing consumers to check on their valuables or children from miles away with a simple telephone call.

Because ViaTVs are designed for use with common consumer electronics devices -- a TV, touch-tone phone and camcorders -- the ViaTV Phone is very easy to setup and use. Setup consists of only three connections: one antenna wire to the TV, two telephone wires (one to the wall jack and one to the telephone) and power. The ViaTV Modular Videophone also requires connection to a camcorder. The user interface consists of easy to follow on-screen menus and the touch-tone keypad, which is used to select options from the menus.

Price and Availability

The MSRP for the VC50 is $329 and it's available immediately. 8x8s retailers include J&R Computer World, Frys Electronics, Staples and CompUSA. 8x8 catalog retailers include Damark, Hammacher Schlemmer, Sharper Image, MicroWarehouse, and Hello Direct.

About 8x8

8x8, Inc. is a manufacturer of video conferencing systems, semiconductors and software. 8x8 is headquartered in Santa Clara, Calif. 8x8s European office is located in London. For more information on ordering a ViaTV, call 8x8 toll free at 1-888-VIEW8X8 or visit the company's web site at http://www.8x8.com.

CONTACT: Scott St. Clair Donna Austi

8x8, Inc. Technology Solutions Inc.

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