Avistar Communications Reports Financial Results for the Second Quarter of 2007.

SAN MATEO, Calif. -- Avistar Communications Corporation (NASDAQ:AVSR), a video collaboration platform provider, today announced financial results for the three and six months ended June 30, 2007.

Revenue for the three months ended June 30, 2007 was $5.9 million, compared to revenue of $2.4 million for the three months ended March 31, 2007 and $1.8 million for the three months ended June 30, 2006. Revenue for the three months ended June 30, 2007 includes $4.0 million in licensing revenue from the recently announced licensing agreement with Radvision Ltd. Income from settlement and patent licensing was $1.1 million for each of the three months ended June 30, 2007 and June 30, 2006. Income from settlement and patent licensing was $13.1 million for the three months ended March 31, 2007.

Avistar reported a net income of $0.4 million, or $0.01 per basic and diluted share, for the three months ended June 30, 2007. Avistar reported a net income of $4.5 million, or $0.13 per basic and diluted share, for the three months ended March 31, 2007 and a net loss of $3.7 million, or $0.11 per basic and diluted share, for the three months ended June 30, 2006. Employee stock compensation expense for equity based compensation required by Financial Accounting Standard No. 123R was $0.6 million for the three months ended June 30, 2007, $0.7 million for the three months ended March 31, 2007 and $0.5 million for the three months ended June 30, 2006.

Revenue for the six months ended June 30, 2007 was $8.3 million, as compared to $3.6 million for the six months ended June 30, 2006. Income from settlement and patent licensing for the six months ended June 30, 2007 was $14.1 million, as compared to $2.1 million for the six months ended June 30, 2006. Avistar reported a net income of $4.9 million, or $0.14 per basic and diluted share, for the six months ended June 30, 2007. For the six months ended June 30, 2006, Avistar reported a net loss of $6.8 million, or $0.20 per basic and diluted share.

As of June 30, 2007, Avistar had cash, cash equivalents and marketable securities of $10.1 million.

"Avistar's most recent results represent the second quarterly profit this year, and thereby place the company in a profit position on a year-to-date basis. Both of the first and second quarter net income results reflect the benefit of our patent licensing agreements- with the Tandberg litigation settlement benefiting the first quarter, and our more-recently announced Radvision licensing agreement influencing the second quarter. These developments represent Avistar's active licensing program, whereby we seek to partner with technology companies in the areas of unified communication and collaboration," stated Gerald J. Burnett, Chairman and Chief Executive Officer of Avistar. "As a reminder, when Avistar's management evaluates our business progress, we consider the sum of reported revenue and income from settlement and patent licensing activities, the latter of which records proceeds from licenses entered into following the start of litigation. Using this management perspective, the Tandberg and Radvision licenses fueled a year-to-date revenue plus income from settlement and patent licensing total of $22.4 million. This result exceeds what we had accomplished at mid-year 2006, and for the full year of 2006."

Dr. Burnett continued, "Also during the second quarter, our wholly-owned subsidiary, Collaboration Properties, Inc., engaged Ocean Tomo, LLC, a leading appraisal and services firm with specialized expertise in valuing patents, to conduct an independent valuation of our intellectual property portfolio. The results of this analysis indicate that the potential net present value of monetizing CPI's intellectual property may represent a multiple of Avistar's current market capitalization. Although this analysis and resultant opinion seem to ascribe substantial value to a dimension of Avistar, it is important to note that it does not represent an offer to buy CPI's intellectual property by any person, nor guarantee that the suggested value can in fact be realized."

Dr. Burnett continued, "Avistar has two primary revenue engines, one which seeks to monetize our extensive intellectual property portfolio through an active licensing and technology partnering program, with the second being our product and services business. In the latter arena, I would like to once again welcome Simon Moss, who joined Avistar this week as President, with initial focus on our product and partnering activities. Simon's accomplished background is well-suited to the needs and opportunities that are present for Avistar. We expect Simon to enhance our thought-leadership and position in the growing unified communications and collaboration marketplace."

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 the net present value of CPI's intellectual property, growth in the unified communications and collaboration marketplace and Avistar's participation in that growth, 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 time, expense and uncertainty associated with the enforcement, licensing or sale of intellectual property rights, the lengthy sales cycles and volatility associated with Avistar's sales and licensing activities, market acceptance of Avistar's products, and competition in the market for video collaboration products. 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 will become or remain profitable in the future, or that its future results will meet expectations. 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

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