First Virtual Communications Announces New Strategic Focus on U.S. Federal Government Initiatives.

Business Editors

REDWOOD CITY, Calif. & MCLEAN, Va.--(BUSINESS WIRE)--March 23, 2004

In support of a wide range of transformational government objectives

for military and civilian agencies, First Virtual increases their

focus of providing communications infrastructure to the government

First Virtual Communications, Inc. (Nasdaq: FVCX), a premier provider of infrastructure and solutions for real-time, rich media communications, today announced that they have launched a new, strategic government initiative to increase their focus on delivering their Click to Meet(TM) rich media communications solution to the Federal Government. This new initiative is in direct response to the government's requirements to rapidly comply with a wide range of directives related to faster decision-making, knowledge-sharing, interoperability and operational effectiveness.

"Our technology's proven ability to perform in large-scale military applications and its network-centric approach to delivering voice, video and data communications enables First Virtual to play a critical role in the transformational plans of many government agencies," commented Jonathan Morgan, president and CEO of First Virtual Communications. "Through our partners and integrators, as well as directly, we enable the executives and IT professionals of federal, state and local government to deploy powerful, affordable communications solutions. We understand the requirements of delivering communications within secure environments, particularly battlefield situations, and that experience will help drive the deployment of our robust, scalable and interoperable communications solution. We see tremendous long-term growth opportunities for ourselves and our partners in this sector."

First Virtual's award-winning Click to Meet offers a unique and easy to use set of communications tools, which combine high-quality multipoint audio and video with web collaboration tools, all within a single web browser interface for a truly interactive, real time, rich media communications environment. The solution enables remote workers and dispersed teams to meet, collaborate, train and present online in an easy-to-use, scalable and cost-effective manner. Click to Meet provides the government with the ability to improve access to people and information regardless of their location.

"Deploying Click to Meet within the government not only means they empower their workforce to be more responsive and effective on a daily basis, but it also means they are properly prepared, trained and fully interoperable in the event of a crisis," commented Gary McGuire, vice president of federal systems for First Virtual. "A clear communications strategy is at the heart of any operational plan, and Click to Meet delivers a communications infrastructure that helps the government to keep pace with rapidly changing requirements."

Click to Meet has a strong proven track record in mission-critical DoD applications, with over 10,000 ports deployed as part of the DoD's Defense Collaborative Tool Suite (DCTS). First Virtual's Click to Meet Conference Server(TM) is the interoperability standard for the DCTS multi-point audio and video solution. First Virtual also participates in many other programs and testing laboratories, including the Internet Voice Distribution System (IVoDS) program for the NASA Marshall Space Flight Center; Battle Video Teleconferencing (BVTC) program for the US Army Fort Monmouth, NJ; and the Joint En-route Mission Planning and Rehearsal System Near-Term (JEMPRS-NT) program for Joint Forces Command (JFCOM).

First Virtual Communications is also a sustaining sponsor of the Armed Forces Communications and Electronics Association (AFCEA) International, the association that serves as an ethical bridge between government requirements and industry's capabilities, representing the top government, industry and military professionals. The Company's Federal Systems Group office, dedicated to supporting the Federal Government, is located at 2010 Corporate Ridge, Suite 700, Mclean, VA. They can be reached by phone: [phone], fax: [phone] or email: [e-mail].

Demonstrations of First Virtual's Click to Meet web communications can be seen this week at FOSE 2004, March 23-25, 2004, at the Washington Convention Center, Washington, DC, in the Microsoft Booth #3003. For more information on FOSE, visit www.fose.com.

About First Virtual Communications' Federal Systems Group

Headquartered in McLean, Virginia, First Virtual's Federal Systems Group provides communications infrastructure to support a wide range of transformational government objectives for military and civilian agencies. Through numerous federal programs and testing laboratories, First Virtual Communications has demonstrated leadership in mission-critical DoD applications for communications and collaboration. Products are available on the GSA schedule, SEWP Government Wide Acquisition Contract (GWAC) and through the BPA Army Small Computer Program. First Virtual is currently a sustaining sponsor of Armed Forces Communications and Electronics Association (AFCEA). For more information about other programs with First Virtual products, visit http://www.fvc.com/eng/usgov/index.htm.

About First Virtual Communications

First Virtual Communications is a premier provider of infrastructure and solutions for real time rich media communications. The Company's award-winning Click to Meet(TM) product line is enterprise-class software that enables corporate, education, healthcare and government customers worldwide to present, share, sell, train and collaborate. Click to Meet integrates the user's choice of data, audio and multipoint interactive video into existing work environments and into everyday communication tools such as instant messaging, web browsing and e-mail. Click to Meet software solutions are widely deployed in over 1,500 customer locations and excel in challenging environments such as military intelligence, emergency response, disaster recovery, corporate training and geographically dispersed tele-working locations, among others. Headquartered in Redwood City, California, First Virtual Communications has operations in France, United Kingdom, Japan and China. More information about First Virtual Communications can be found at www.fvc.com or by calling 1-800-728-6337 or [phone] outside North America.

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 have known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of First Virtual Communications, 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: the success of and timely release of the Company's Click to Meet(TM) products, the increase in sales of the Company's Click to Meet(TM) and Conference Server products, the Company's variability of operating results, market acceptance of web conferencing technology, potential inability to maintain business relationships with integrators, distributors and suppliers, rapid technological changes, competition and consolidation in the web conferencing industry, the importance of attracting and retaining personnel, and other risk factors referenced in First Virtual Communications' public filings with the Securities and Exchange Commission, including the Company's report on Form 10-Q for the three month period ended September 30, 2003.

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