Artisoft Provides Business Update.

Business/Technology Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Sept. 7, 2001

Artisoft(R), Inc. (NASDAQ: ASFT - news), developer of the first software-based phone system, today announced that it had begun shipping version 4.0 of its flagship TeleVantage software-PBX as well as its new TeleVantage Call Center product. The company also announced that it has begun shipping TeleVantage CTM Suite, a new product that is being loaded onto the Intel(R) Converged Communications Platform, but that it was lowering its forecast for this product line for the remainder of this calendar year. Separately, Artisoft also announced that it is taking measures to accelerate its time to profitability by lowering its expenses, principally through a reduction in its workforce.

Shipping today, TeleVantage 4.0 offers a sophisticated feature set that was previously out of reach for most mid-sized businesses, including advanced call center queue features such as intelligent call routing, comprehensive trend reports, real-time statistics tracking, remote IP agent support, and agent monitoring, coaching and recording. TeleVantage 4.0 also represents the results of an 18-month joint-engineering project with Toshiba to integrate TeleVantage with the popular Toshiba digital handsets. Through an OEM arrangement with Artisoft, Toshiba is marketing TeleVantage 4.0 under the Strata CS brand, which is being distributed and supported through Toshiba's established dealer channel.

Also shipping today, TeleVantage CTM Suite is a modular set of open-architecture software that bundles soft switch, auto attendant, and voice-mail applications, which is being loaded onto the Intel(R) Converged Communication Platform. Due to changes in Intel release schedules, Artisoft now expects that significant revenues from the CTM Suite will be deferred until calendar year 2002.

"As we begin to receive orders for TeleVantage 4.0, we are pleased with the enthusiastic response we are getting from our channel and customers to its powerful feature set," said Steve Manson, president and CEO of Artisoft. "Although we are disappointed in the delay of TeleVantage CTM Suite revenues, we remain confident that the interoperability environment of the Intel(R) Converged Communications Platform will ultimately lead to strong success for this product line as well."

The company also plans to reduce its workforce by approximately 35 employees to lower expenses. "Over the last 18 months, we have invested heavily in two major parallel development projects," said Steve Manson. "With the completion of TeleVantage 4.0 and TeleVantage CTM Suite 1.0, we were able to consolidate our workforce while continuing to invest aggressively in our leading technology. Over 30% of our employees continue to be focused on research and development."

Artisoft also announced that James Zucco has resigned from the Board of Directors to focus on his responsibilities as CEO of Spike Technologies, Inc.

Artisoft will be holding a conference call at 4:15 EDT today to discuss this business update. A live Webcast will be available at www.artisoft.com.

About Artisoft:

Artisoft, Inc. (NASDAQ: ASFT) of Cambridge, Mass., is a leading developer of software-based phone systems for midsized businesses, corporate branch offices, and call centers. Artisoft TeleVantage is a feature-rich phone system that combines the power of desktop computer with the most advanced communications technology available today. Built on open-systems architecture, TeleVantage provides greater value while safeguarding a business' investment for the future. Artisoft's innovative software products have received 30 industry awards including "Product of the Year," "Best of Show," and "Editors' Choice" by PC Magazine, Network Magazine, Communications Solutions Magazine and Customer Inter@actions Magazine, among others. The company distributes its products worldwide. For more information, please call Artisoft at 800-914-9985 or visit http://www.artisoft.com.

Forward-Looking Statements:

This release contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events, and these statements are subject to important facts and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements in this release address a variety of subjects including, for example, Artisoft's financial results, management's strategies and Artisoft's products and strategic alliances. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the approval of the Company's shareholders of the financing announced on August 8, 2001, the availability of additional financing on terms acceptable to the Company or at all, the impact of competitive products and pricing, product demand and market acceptance risks, the presence of competitors with greater financial resources, product development and commercialization risks, costs associated with integration and administration of acquired operations, capacity and supply constraints or difficulties and other factors detailed in the Company's filings with the Securities and Exchange Commission including the Company's Annual Report on Form 10-K, as filed on September 22, 2000, and the Company's Quarterly Report on Form 10-Q, as filed on May 15, 2001.