City of San Antonio Builds `Smart City' Using FVC.COM Video Networking Equipment; Designated a `Best Solution,' City's Network is on view at Government Technology Conference.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb. 10, 1999--FVC.COM (Nasdaq:FVCX), the leader in enterprise video networking, today announced that the City of San Antonio has chosen FVC.COM products for four key components of its next-generation broadband Intranet: distance learning through public libraries, "Learning and Literacy" courses at community centers, telemedicine at local clinics, and videoconferencing in the Police Department.

The City also evaluated a proposal from Cisco Systems before choosing the FVC.COM solution, based on the Access NGI switch, V-Gate, V-Caster and V-Cache. Deployment of the video network has begun, in partnership with FVC.COM and Nortel Networks, and will continue over the next four to eight months.

The new applications are part of San Antonio's "Smart City" project, designed to provide collaborative two-way interactive voice, video and data communication between educational, medical, governmental and research facilities. Designated one of the "Best Solutions" at the Government Technology Conference (GTC), the San Antonio program is featured on the exhibit floor. The conference takes place today through Friday in Austin, Texas.

Over 200 personal computers in the San Antonio main library and 19 branches, will be linked to a voice, video and data network, allowing citizens to participate in classes remotely or access courses on stored video. Room-style video systems, connected to the various classrooms of the Alamo Community College District, will make remedial courses available in community centers to support literacy programs. Networking fourteen health clinics and the University Hospital System will enable consultations and test data transfers over distance, giving remote patients access to the highest quality care. The Police Department's desktop videoconferencing network will connect substations with Headquarters and save travel time over San Antonio's large geographical area.

"Expanding our network with these services is a major step ahead for San Antonio," said Gary Moeller, director of information services for the City of San Antonio. "FVC.COM has the best solution to support our Smart City vision. We fully expect these new applications will open the door to other video-based community services and efficiency improvements."

Nortel Networks is helping the city develop its vision by providing the infrastructure that allows San Antonio's public entities to converge their voice, video and data into one unified network. A self-described "IP shop," the City will run the new applications over IP (Internet Protocol) on an ATM backbone.

About FVC.COM

FVC.COM is the world leader in enterprise video networking. Founded in 1993 by technology pioneer Ralph Ungermann, FVC.COM manufactures and supports a broad family of interactive video, streaming video and multi-service access products. Designed for high-quality video delivery, integrated with voice and data, these products enable applications such as distance learning, corporate communications, virtual meetings and telemedicine. With unique expertise in video networking over both broadband and IP, FVC.COM delivers all types of video across enterprise intranets and the Next Generation Internet (NGI).

FVC.COM's OEM, distribution, and system integration partners include Ascend Communications (Nasdaq:ASND), Bell Atlantic Network Integration (NYSE:BEL), British Telecommunications plc (NYSE:BTY), EDS (NYSE:EDS), France Telecom (NYSE:FTE), IBM (NYSE:IBM), Lucent Technologies (NYSE:LU), NEC (Nasdaq:NIPNY), Nortel Networks (NYSE:NT), PictureTel (Nasdaq:PCTL), and other leading companies worldwide. Further information about the company is available at http://www.fvc.com.

About the Next Generation Internet

The NGI is the new multi-service broadband Internet, being deployed today by service providers and enterprises for the integrated delivery of voice, video and data applications. A key characteristic of the NGI is its ability to handle multimedia applications such as real-time interactive video, TV-quality streamed video, and voice. FVC.COM is leading the deployment of video across government, education, and service provider NGI implementations. Further information about the NGI is available at http://www.fvc.com/ngi.

Cautionary Statement

Except for the historical information contained herein, this news release contains forward-looking statements, including, without limitation, statements containing the words, "believes," "anticipates," "expects" and words of similar import. Such forward-looking statements will have known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of FVC.COM, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: FVC.COM's limited operating history and variability of operating results, market acceptance of video technology, dependence an ATM backbone technology and the Next Generation Internet, potential inability to maintain business relationships with distributors and suppliers, rapid technological changes, competition in the video networking industry, the importance of attracting and retaining personnel, management of FVC.COM's growth, consolidation and cost pressures in the video networking industry, dependence on key employees and other risk factors referenced in FVC.COM's Registration Statement on Form S-1, File No. 333-38755, declared effective on April 29, 1998.