Avistar Communications Announces Organizational and Growth Initiatives.

SAN MATEO, Calif. -- Avistar Communications Corporation (NASDAQ:AVSR), a video collaboration platform provider, today announced an intensive set of corporate growth initiatives to increase product sales, expand customer deployments and support, improve corporate efficiency and increase development capacity -- all with the goal of converting Avistar's recognized technology leadership into market leadership in high-growth verticals for Unified Communications (U.C.) solutions.

The corporate growth initiative is expected to be fully implemented before the end of 2007, with the objective of achieving results in 2008. The first components of this initiative include:

-- Centering its sales, marketing and operations activities, and associated management functions in Avistar's New York City offices. These structural and strategic changes are designed to increase product sales and account acquisition, maximize support of customers in Avistar's target markets, increase international engineering capacity, and achieve efficiency and productivity gains throughout the enterprise.

-- Introducing a new go-to-market strategy and delivery model for hosting desktop video services. Further details regarding this initiative and its initial successes will be provided in the near future.

-- Supplementing its impressive position in the financial services vertical by expanding its market focus to additional verticals with complex business problems, where Avistar's award-winning collaboration products can help global organizations speed business processes, save costs and reduce their carbon footprints.

-- Engaging the market with a new, dynamic application integration and network risk management product set with video as the primary, empowering technology. This will involve multiple distribution, services and technology partners.

"These actions represent initial, but decisive steps in translating Avistar's technology and thought leadership into market leadership," said Simon Moss, who joined Avistar as its new President in July, 2007. "There are a lot of moving parts to the strategic changes that we are putting in place, all of which make Avistar an exciting place to be working at the moment. We are confident that the results from these initiatives will position Avistar as a world leader in the Unified Communications market. With reduced structural costs and an increase in organizational and partner-driven capacity, combined with our world-class reputation for innovation and intellectual property leadership, we believe we're poised to continue our global growth and expansion into new markets."

About Avistar Communications Corporation

Avistar Communications Corporation develops, markets, and supports a video over-IP collaboration platform for the enterprise, all powered by the AvistarVOS[TM] software. From the desktop, Avistar delivers business-quality video calling, recording, publishing to web and e-mails, video-on-demand, broadcast origination and distribution, and document sharing. Avistar video-enables business processes by integrating visual communications into the daily workflow and connecting communities of users within and across enterprises. Founded in 1993, Avistar is headquartered in San Mateo, California, with offices in New York and London. Avistar's technology is used in more than 40 countries.

Collaboration Properties, Inc. (CPI) is a wholly owned subsidiary of Avistar Communications Corporation. CPI develops patents for presence-based interactions, wireless communications, desktop video, recorded and live media at the desktop, multimedia documents, data sharing, and a service-rich video network architecture. It holds a current portfolio of 76 patents for inventions in the primary areas of video and network technology. CPI offers licenses to its patent portfolio and Avistar's video-enabling technologies to companies in the video conferencing, rich-media services, public networking, and related industries. Current licensees include Sony Corporation, Polycom, Inc., Tandberg ASA, Radvision Ltd., and Emblaze-VCON.

For more information, visit www.avistar.com.

Forward Looking Statements

Statements made in this news release that are not purely historical, including but not limited to statements regarding Avistar's corporate growth initiative, components of the initiative, timing of implementation, its expected results, Avistar's participation in and leadership role in the Unified Communications market, expansion of this market and Avistar's ability to become a world leader in Unified Communications are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. Such statements are subject to risks and uncertainties that could cause actual results to differ materially, including such factors, among others, as the expense and uncertainty associated with changes to Avistar's organizational structure and business model, the lengthy sales cycles and volatility associated with Avistar's sales and licensing activities, challenges associated with achieving market acceptance of video collaboration products in general and Avistar's products in particular, and intense competition in the market for video collaboration and Unified Communications products from a wide range of providers. As a result of these and other factors, Avistar expects to experience significant fluctuations in revenue and operating results, and there can be no assurance that Avistar's corporate growth and organizational initiatives will be successful in their implementation or in achievement of their stated objectives. These and other risk factors are discussed in Avistar's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission from time to time. Avistar disclaims any intent or obligation to update these forward-looking statements.

Copyright (c) 2007 Avistar Communications Corporation. All rights reserved. Avistar, AvistarVOS, and the Avistar logo are trademarks or registered trademarks of Avistar Communications Corporation.