ADC Video Systems, Announces Strategic Alliance with Videoconferencing Services, Inc. for Video Conferencing and Distance Learning Applications.

MERIDEN, Conn.--(BUSINESS WIRE)--Sept. 21, 1995--ADC Video Systems, Inc. (AVS), a wholly-owned subsidiary of ADC Telecommunications, based in Minneapolis, Minnesota, today announced it has entered into a joint marketing agreement with Videoconferencing Systems Inc. (VSI) of Norcross, Georgia, to cross-market, -sell, and -support certain video conferencing and distance learning products of each company.

Under this non-exclusive agreement, AVS can offer VSI Omega(TM) products including VSI's Video Administrator in conjunction with sales of its own distance learning and video conferencing products. VSI can offer the AVS PixlNet(TM) Multipoint Video Conferencing system and MPEG (Motion Picture Experts Group) products in conjunction with its own Omega product. ADC Video Systems offers Optivision's line of OPTIVideo(TM) digital compression MPEG-1 and MPEG-2 products through ADC Telecommunications' recent investment in Optivision.

The agreement provides significant advantages to both AVS and VSI, which already have presence in the marketplace.

Carleton Brown, AVS President, stated "This alliance will enable us to provide a focused approach to our distance learning and video teleconferencing customers by providing complete systems to satisfy the specific requirements of a diverse user-base. The flexibility of the PixlNet system, coupled with the scheduling and networking capabilities of the Omega product line provides both companies with a scaleable product offering that is available now, and is also capable of utilizing enhancements as the industry evolves."

VSI Chairman and CEO, Richard K. Snelling views the agreement as a means for each company to expand. "This strategic alliance will enable both VSI and AVS to capitalize on opportunities in all user categories from group to desktop applications, while continuing to develop innovative technologies. This new agreement provides each company with broader sales, marketing and development resources to keep pace with the expanding market."

The PixlNet system is ADC Video Systems' real-time, interactive multipoint video conference control system which provides multiple virtual networks for both private and switched network applications. PixlNet provides multipoint video connectivity and real-time conference management to what have traditionally been point-to-point networks.

The Omega videoconferencing platform is a flexible, user-friendly, software-driven system which provides features including remote diagnostics, a mouse-controlled Graphical User Interface (GUI) and network management capabilities. The Omega system is codec-independent and operates on an industry standard platform. The VSI Video Administrator provides simple management and control of a video conference network. Powerful scheduling and administrative software tracks all video conferences, equipment sites and users, regardless of location.

OPTIVideo encoders deliver professional quality MPEG encoding and data rates to meet the needs of the cable TV, broadcast video and distance learning markets. OPTIVideo decoders support a wide variety of data transport formats including MPEG-1 System, MPEG-2 Program and MPEG-2 Transport.

Founded in 1983, Optivision, Inc. is a leading developer of high performance MPEG-2 and MPEG-1 compression and decompression products supporting applications in three distinct areas: authoring systems, video transmission/broadcast systems and video-on-demand/video server systems. The company also custom-develops still image and video compression solutions, as well as photonics-related products, for the government and military markets. Headquartered in Palo Alto, California, Optivision has a manufacturing, engineering and testing facility in Davis, California and a sales office on the East coast.

Videoconferencing Systems Inc. is a wholly-owned subsidiary of VSI Enterprises Inc., (NASDAQ: VSIN: BSE: VSI), which designs, manufactures and markets video conferencing systems. US sales offices are located in Atlanta, New York, Boston, Washington DC, Chicago and Dallas. In Europe, the headquarters of VSI's European subsidiary, Videoconferencing Systems, nv is located in Antwerp, Belgium with sales offices in London and Paris. Customers include Fortune 1000 corporations, US governmental agencies and other major institutions throughout North America, Europe and the Pacific Rim.

ADC Video Systems is a leading designer and manufacturer of video solutions in technologies worldwide, including compressed and non-compressed digital, FM, and AM/VSB linear broadband systems for a wide range of leading companies in the cable and telephony industries. The Company is a wholly-owned subsidiary of ADC Telecommunications in Minneapolis, Minnesota (NASDAQ symbol: ADCT).

ADC Telecommunications, Inc., is a leading supplier of transmission and networking systems used to deliver voice, data video and wireless services. The company holds a preeminent market position in physical connectivity products for fiber-optic, twisted pair and coaxial networks. Wholly-owned business units include ADC Fibermux, ADC Kentrox, ADC Video Systems and AOFR. The company also operates international business units in Australia, Belgium, Canada, China, England, Mexico, Singapore and Venezuela. Fiscal year 1994 revenues were $448.7 million.

NOTE TO EDITORS: All products mentioned are trademarks of their respective companies.

CONTACT: ADC Video Systems

Joanne Tiberio, 203/317-4041

or

Videoconferencing Systems, Inc.

Ken Keatley, 770/242-7566