CLI receives $1.4 million expansion order from the People's Republic of China MPT.

SAN JOSE, Calif.--(BUSINESS WIRE)--March 31, 1995--Compression Labs Inc. (CLI) (NASDAQ/NMS:CLIX) announced today that the Ministry of Posts and Telecommunications (MPT) of the People's Republic of China placed an expansion order of $1.4 million for the company's Radiance videoconferencing systems and Multipoint 2 control units. This will expand the MPT videoconferencing network installed in 1994 by the government's telecommunications authority to more than 60 units.

CLI videoconferencing products continue to be chosen by the government of China on the basis of the company's technology, picture quality, ease of use and leadership position in the videoconferencing marketplace. In addition to the MPT network connecting all the provinces to Beijing, the Provinces of Anhui, Hebei, Jiangsu, Zhejiang also have substantial networks connecting cities within each of their provinces. The Customs House and the Ministry of Railroads also use CLI systems, bringing to a total of more than 150 CLI room systems used in China.

CLI, "The First Name in Video Communications," is a leading designer and manufacturer of products for digital video communications. Using its core technology, compressed digital video, the company provides a broad range of group and desktop videoconferencing products, as well as broadcast products for digital television and consumer video-on-demand. With headquarters in San Jose, 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: Compression Labs Inc.

Joyce Strand, 408/922-4610

Mia Bradway, 408/428-6735

Susan DeMaio, 408/922-5523