AltiGen Computer Telephony Solutions Brought to Japanese Market by NTT and Kanematsu.

FREMONT, Calif.--(BUSINESS WIRE)--June 4, 1998--

Alliance Focuses on Product Localization, Channel Development and Promotion of Open Standards

AltiGen Communications, Inc., a leading provider of computer telephony (CT) platform solutions, today announced it has entered into a partnership with both Nippon Telephone & Telegraph (NTT) and Kanematsu Semiconductor Corporation (Kanematsu), one of the largest trading companies in Japan. Under the terms of the agreements, Kanematsu will sell the AltiGen components that are used to build AltiServ systems, namely Quantum boards and AltiWare software throughout Japan, leveraging their established system integrators. NTT will resell AltiGen's award-winning AltiServ TM telecom solution through its network of computer dealers. Both companies are taking orders with July delivery dates.

AltiGen's products target Japan's growing market of CTI, especially small-to-medium sized business and call centers. The telecom server provides the hardy telecommunications features and functionality most requested by small businesses. With this announcement, companies in Japan with up to 150 telephones will be able to implement the industry's most robust and flexible communications system. AltiGen products provide traditional telephone system functionality as well as automated-attendant service, voice messaging, automatic call distribution (ACD) and electronic mail--all on a PC or server running Microsoft's Windows NT.

"AltiGen has been working closely with NTT and Kanematsu for more than six months localizing our hardware and software to meet the special requirements of the Japanese market," said Gilbert Hu, president of AltiGen. "I am very proud of what our companies have accomplished in preparation for our entry into the Asia Pacific market. We are confident that this will be a very successful venture for all participants."

"We anticipate strong growth for the open platform solutions that computer-based telephone systems provide," said Mr. Takeshi Mochizuki, general manager and president of NTT's Fanet division. "Unlike traditional closed proprietary phone systems, AltiGen's platform offers our dealers a bridge into the exciting computer telephony industry so they can leverage their expertise in telecommunications and computers."

"PC-based computer telephony solutions offer a huge business opportunity for Kanematsu and our dealer network," said Mr. Shinya, president of Kanematsu Semiconductor Corporation. "Instead of turn-key platforms, we will sell localized Quantum boards and AltiWare to our dealers, who will then build AltiServ systems to meet the specific needs of their customers."

AltiGen Products Provide Flexible, Cost-Effective Solutions

An AltiServ system is the combination of a PC/Server running Windows NT, plus AltiGen's AltiWare software and "All-in-One" Quantum board to provide advanced computer telephone integration technology with unparalleled flexibility, scalability and cost-effectiveness for small businesses. AltiGen supports all its products with a money-back guarantee and one-year warranty.

AltiGen Communications, Inc., is the leading provider of "All-in-One" telecommunication servers. Its products represent the convergence of computers, telephone systems and the Internet into a single Microsoft Windows NT-based platform. AltiGen provides advanced PBX, voice mail, auto-attendant and e-mail functionality, plus ACD and the ability to integrate with the Internet to provide computer telephony integration functions on a global basis. AltiServ(TM) allows users to improve customer service and simplify communications for all employees, especially mobile workers and telecommuters. Computer Telephony Magazine awarded AltiGen a "Product of the Year" for 1996. AltiGen has also received several "Best of Show" awards and was most recently awarded PC Week's 1998 Analyst's Choice Award.

With annual revenues in excess of USD$71 billion, Nippon Telegraph and Telephone Corporation and its subsidiaries provide Japan's broad range of telecommunications services, including telephone, telegraph, leased circuit, data communication facilities and miscellaneous services. NTT also sells terminal equipment.

Kanematsu Corporation has annual revenues approaching USD$140 billion from a broad range of operations including: electronics, energy, chemicals & plastics, machinery, textiles, foodstuffs and provisions, nonferrous metals, iron & steel, construction & development, lumber & wood products, and business planning & coordination.

    CONTACT: AltiGen Communications
              Gary Andresen
              Vice President of Marketing
              510/252-9712, ext. 401
              [e-mail]
                      or
              Renee Maler Marketing & Communications
              Renee Maler
              925/828-9495
              [e-mail]
                      or
              NTT Fanet Division
              Mr. Takeshi Mochizuki
              General Manager and President
              [phone]
                      or
              Kanematsu Semiconductor Corporation
              Mr. Shinya
              President
              [phone]
              [e-mail]