Avistar and IPC Partner to Bring Video Communication to Trading Floor Desktops; Integrated Audio/Video at the Desktop Will Broaden Collaborative Possibilities.

Business Editors/High-Tech Writers

REDWOOD SHORES, Calif. & NEW YORK--(BUSINESS WIRE)--Oct. 3, 2002

Avistar Communications Corporation (Nasdaq:AVSR), a leading provider of enterprise video communication solutions, and IPC Information Systems, Inc., the specialists that the global financial community depends on for world class trading floor solutions, today announced a development and joint marketing agreement to integrate IPC's Alliance MX(TM) switching platform and Avistar's video solutions, powered by the AvistarVOS(TM) software. The integration of these technologies is expected to benefit traders and sales professionals by delivering seamless, simultaneous access to voice and video calls from a single interface.

The AvistarVOS video operating system permits ready access to a variety of video communications services -- multi-party video calls, broadcast, video-on-demand, record and playback -- and is right at the users' fingertips. The Alliance MX platform is a reliable, non-blocking switch that provides voice communications in trading rooms throughout the financial services industry.

Once the development effort is complete, Avistar's video solutions and the Alliance MX switch will combine to deliver the audio portion of voice and video calls, video clips, and live video feeds to a single handset or headset at the IPC trading desktop.

In addition, the integration is expected to permit a greater number of participants to connect to a conference call using a trading system handset, a conventional or mobile phone, or video terminal.

"In the fast-paced, information-intensive day of a financial trader, opportunities to communicate more quickly and thoroughly are welcomed," said Larry Tabb, vice president Securities and Investments Practice at The TowerGroup. "Video can increase the speed and impact of trading floor communications when it is seamlessly integrated with existing desktop tools and fits smoothly into the daily workflow."

"We are working with Avistar in a collaborative effort to put one of the most important forms of interpersonal communications at traders' fingertips," said Stefanie Sovak, IPC senior vice president of Business Development and Product Management. "The agreement also underscores IPC's commitment to providing our clients with communications that are both efficient and cost effective."

"Financial services firms are concerned with efficient, effective teamwork and information-sharing in a fast-paced, volatile marketplace," said Jim Hughes, president of Avistar. "Linking video communications with the leading trading system gives traders yet another tool and makes it easy and natural for them to collaborate with distributed sales offices, analysts, partners, and clients. Our partnership with IPC isn't about adding a face to the phone; it's about providing one-on-one closeness and trust when busy professionals need it most."

About Avistar Communications Corporation

Avistar develops, markets and supports the Avistar vBusiness(TM) integrated suite of video-enabled applications, all powered by the AvistarVOS(TM) software. Avistar integrates video communications into day-to-day business process applications. From the desktop, Avistar delivers TV-quality video calling, recording, publishing, video-on-demand, broadcast, and document sharing.

Founded in 1993, Avistar Communications Corporation (Nasdaq:AVSR) is headquartered in Redwood Shores, California, with sales offices in New York and London. Collaboration Properties, Inc., a wholly owned subsidiary of Avistar Communications Corporation, holds a broad portfolio of patents covering the AvistarVOS platform as well as multiple software and hardware video collaboration products.

About IPC

IPC Information Systems, Inc., a wholly owned subsidiary of IPC Acquisition Corp., leads the market in the delivery of integrated multimedia communications solutions for financial trading floors. Fault-tolerant architecture, ease of upgrading, and scalability have made IPC's trading systems a mainstay on the desktops of 100,000+ traders in over 34 countries, allowing traders to communicate with each other instantly and reliably. IPC has led the way to integrating voice and data on trading systems with the IQMX(TM) IP turret, the world's first voice over Internet Protocol (VoIP)-based trading system.

IPC has offices throughout the Americas, Europe, and the Asia Pacific region. For more information, visit www.ipc.com.

Note to Editors: Avistar, AvistarVOS, Avistar vBusiness, and the Avistar logo are trademarks or registered trademarks of Avistar Communications Corporation. IPC and IQMX, are trademarks of IPC. All other trademarks are the property of their respective owners.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

All statements included in this release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements, including statements regarding the nature and impact of the integration of Avistar and IPC products and services, are based on our current expectations, estimates and projections, management's beliefs, and certain assumptions made by us. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "potential," "continue," similar expressions, and variations or negatives of these words. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements speak only as of the date hereof, and are based upon the information available to us at this time. Such information is subject to change, and we will not necessarily inform you of such changes. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Important factors that may cause such a difference include, but are not limited to, technological change, difficulties or delays in installation and integration, adoption delays, user perceptions and other events beyond our control. Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss some of the important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.