AltiGen Communications Honored as One of Bay Area's Fastest Growing Public Companies.

Business/Technology Editors

FREMONT, Calif.--(BUSINESS WIRE)--June 27, 2000

Leading provider of next generation phone systems experiences

140 percent revenue growth in first quarter 2000

AltiGen Communications, Inc. (NASDAQ: ATGN), the leading provider of next generation phone systems with advanced Voice over IP (VoIP) solutions, announced today that it has been named one of the San Francisco Bay Area's fastest growing publicly held companies. Recognized by the San Francisco Business Times as a top performer with revenues of $7 million for 1999 -- representing a more than 140 percent growth over the previous year -- the company was ranked 38th out of 150 companies included in the listing.

By providing integrated communications solutions to help small to mid-sized businesses compete in an increasingly competitive and fast-moving economy, AltiGen has distinguished itself as the pioneer and the leader in telecom server technology. Acclaimed for its ease-of-use, reliability and full feature set, the AltiServ(R) platform has become the popular choice of companies spanning a wide variety of industries, including business services, construction, high-technology and real estate. Remax, American Red Cross, Granite Construction and others are among those who have all installed AltiGen systems to streamline their communications and enhance productivity.

"Our commitment is to continue to provide breakthrough communications solutions to help small to mid-sized businesses compete in the Internet economy," states Gilbert Hu, president and CEO of AltiGen, who has led the company from start-up through IPO. "We will build the AltiGen name on innovation, customer service and the highest quality products available, at a price that continues to be affordable to the small to mid-sized business."

With revenues of $5.7 million for the first six months of fiscal year 2000 -- representing a more than 140% growth over the same period for fiscal year 1999 -- AltiGen is on track for another strong performance this year. "AltiGen's excellent performance and growth can be attributed to the entire company," said Hu. "Everyone has worked extremely hard over the past four years and certainly deserves this recognition as a team effort. I am delighted to have achieved this recognition from the San Francisco Business Times."

The 150 Fastest Growing Companies is an annual list that ranks the top performing public companies in the San Francisco Bay Area. The ranking is based on percent growth over the last 11 quarters.

About AltiGen (www.altigen.com)

AltiGen Communications, Inc. is the leading supplier of next-generation telecom servers (server-based telecommunications systems), which give small-to-medium-sized businesses and branch offices integrated communications systems for streamlined operations and enhanced productivity. AltiGen's telecom server uses both the Internet and traditional phone lines interchangeably and allows businesses to integrate their phones, databases and PC's into one powerful web-enabled communications network. AltiGen products are available from authorized resellers and come with a one-year warranty. AltiGen's AltiServ(R) platform has been recognized for excellence with more than two dozen industry awards since 1996 when the platform was first launched, including most recently a 1999 Editor's Choice Award from PC Magazine and Internet Telephony Magazine's 1999 Product of the Year Award.

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 Company's recent 10-K filed on December 29, 1999. AltiGen assumes no obligation to update the forward-looking information contained in this press release.