AltiGen Launches National Service Program with Compaq Global Services; Market Leaders Team Up to Provide Single-Source Support for Multi-Site Customers Through Resellers.

Business Editors and High Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--Sept. 19, 2000

AltiGen Communications, Inc., a leading provider of next generation telecom servers and IP-based computer telephony solutions, today announced it is teaming with Compaq Global Services to provide consistent, single source support for AltiGen national accounts and multi-site customers. Under a new national service program, AltiGen dealers who are also Compaq resellers will sell Compaq services across the U.S. and Canada.

The program provides AltiGen's customers with service and support from Compaq Global Services, an organization of 30,000 employees worldwide. Compaq Global Services will provide project management, installation, remote monitoring, 24x7 phone support and a four-hour response for on-site service throughout the U.S. and Canada.

"Today, a phone system is a business critical component of any business or organization," commented Compaq's Acting Vice President of North America Customer Services, Larry Pape. "AltiGen products and Compaq ProLiant servers provide a powerful solution that is now supported by Compaq Global Services. Our joint customers will now benefit from a complete, high-quality, cost-effective solution," said Pape.

"AltiGen is already a market leader in this space," said Sherman Silverman, AltiGen's vice president of Business Development. " The agreement with Compaq is extremely important because it allows AltiGen to move its national account and multi-site customer sales efforts to the next level. Our resellers are immediately able to target larger opportunities because they have the service backing of Compaq Global Services."

The program will support AltiGen's powerful Windows NT/Windows 2000 server-based PBX and Voice over IP (VoIP) solution running in Compaq ProLiant servers. The "All-in-One" solution provides customers with corporate-strength voicemail, auto attendant, e-commerce integration, informal call center functionality and IP extension support for remote employees.

"We are currently deploying the AltiServ system in conjunction with Compaq Services for a customer with locations in Hawaii, Los Angeles, Florida and New York," said Kathy Tachna of Los Angeles-based First Computer. "The customer was looking for advanced telecom features and the ability to reduce long distance charges between offices. Compaq Service's outstanding reputation and ability to support the customer nationwide was critical to the customer's decision."

Compaq services for AltiGen products are sold as CarePaq Services and can be purchased immediately through authorized AltiGen dealers who are also authorized Compaq resellers. Pricing will vary depending on the number of locations to be serviced, and large implementations will be customized to customer requirements.

About AltiGen

AltiGen Communications, Inc., is a leader in the server-based telecommunications system market. AltiGen designs, manufactures and markets next generation, server-based telecommunications systems that use both the Internet and the public telephone network to enable an array of applications that take advantage of the convergence of voice and data communications. AltiGen products are fully Y2K compliant, are available from authorized resellers and come with a one-year warranty. AltiGen's AltiServ has been recognized for excellence with nearly 30 industry awards, including a 1999 Editor's Choice Award from PC Magazine and a 1998 Analyst's Choice Award from PC Week Magazine. For more information, call 1-888-ALTIGEN or visit the website at www.altigen.com.

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's leveraging of its leadership in multimedia (including voice) over Internet protocol solutions to rapidly expand into new product areas; the Company's program to team with Compaq Global Services to provide support for AltiGen national accounts and multi-site customers. 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 and10-Q filed with the SEC on January 5, 2000 and May 15, 2000, respectively. AltiGen assumes no obligation to update the forward-looking information contained in this press release.