CLI awarded new contracts from China totaling $5.2 million; Adds province of GuangXi; National MPT and Province of Zhejiang enter Phase 2.

SAN JOSE, Calif.--(BUSINESS WIRE)--June 29, 1995--Compression Labs, Incorporated (CLI) (NASDAQ/NMS:CLIX) announced today it has received orders totaling $5.2 million from the People's Republic of China for the company's group videoconferencing systems and Multipoint 2 control units.

Added to the growing list of CLI videoconferencing networks in China are two major cities, Shanghai and Shenzhen, and a new province, GuangXi. In addition, the national Ministry of Posts and Telecommunications (MPT) and the Province of Zhejiang have entered the second phase of building their networks.

"CLI is helping China to build a communications network spanning vast geographic distances to enable widespread efficient, interactive meetings. These additional orders bring the number of CLI systems in China to more than 250. CLI's ability to accommodate the specific needs of China, the superior video quality of our products and our intuitive user interface make CLI videoconferencing the number one choice in China," said John E. Tyson, president, chairman and CEO of CLI.

The Province of GuangXi will use their Radiance videoconferencing systems to connect ten cities within the province. The city of Shenzhen, which is the first major industrial city north of Hong Kong, will connect three major locations. The Province of Zhejiang Posts and Telecommunications Administration has begun Phase 2 of their deployment and have added 35 cities to join their network already connecting 45 other cities within the province.

The national MPT has ordered additional Multipoint Control Units, which are being used in all the China networks to enable all state capitals in China to participate simultaneously in the same conference and to serve as critical video hubs to link numerous sites connected via dedicated transmission lines.

The Radiance family of group videoconferencing systems, announced in January 1994, achieves high-quality video at up to 30 frames per second and 480 lines of resolution. The table-top touchpanel, based on CLI's industry-leading Self-Guide user interface, provides intuitive control via menus and icons to guide users during a conference. In addition to communicating with other CLI systems, Radiance can communicate with the growing number of codecs that meet ITU-TSS H.320 standards.

CLI designs and manufactures solutions for economical video communications. Using its core technology, compressed digital video, the company provides a broad range of videoconferencing and broadcast products. With headquarters in San Jose, Calif., CLI has regional sales offices across the United States, international offices in Canada, Europe and the People's Republic of China, and distributors serving more than 50 countries worldwide.

CONTACT: CLI Public Relations

Joyce Strand, 408/922-4610