Israeli Prime Minister Opens Largest Telecommunications Exhibition in Israel Using VCON Videoconferencing Systems.

TEL AVIV, Israel--(BUSINESS WIRE)--Nov. 16, 1998--Israeli Prime Minister, Benjamin Netanyahu last week addressed a full audience of dignitaries, ambassadors and Members of Parliament at the opening ceremony of Telecom Israel 98 using state of the art videoconferencing technology by VCON. Limor Livnat, Minister of Telecommunications, hosted Telecom Israel 98, the largest and most important Telecommunications Exhibition to take place in Israel to-date.

Minister Livnat addressed the burgeoning audience on the technological advances and achievements made in the Israeli high-tech sector before introducing Prime Minister Netanyahu, although unable to attend in person, welcomed the audience from his governmental chambers in Jerusalem. The connection was made over 3 standard ISDN lines using VCON's latest compact and portable videoconferencing system, the QuickConnect 6, which produced unsurpassed audio and seamless video projected on to large screens at the prestigious opening.

"We are extremely proud of our high-tech development, and VCON's videoconferencing technology is yet another example of the advances made in the Israeli telecommunications industry that allowed such a meeting to take place between Prime Minister Netanyahu and our distinguished guests," expressed Minister Livnat from Telecom Israel 98.

This does not mark the first time that VCON videoconferencing technology has been used on such a significant level. Minister Livnat previously utilized videoconferencing, as opposed to direct satellite link, during the CommunicAsia 98 Exhibition in Singapore, where she conducted a face-to-face conference from Israel to the Telecommunications Minister of Singapore. This meeting tool is fast becoming the chosen medium of communication on many governmental levels for its quick and easy operation, secure video and audio transfer, as well as drastically reduced cost-of-use.

"The beauty of videoconferencing with the QuickConnect is the ease and speed with which we set-up in both locations. The entire procedure from beginning to end was performed in a matter of hours by one Technical Support Engineer and most of that time was spent traveling between the sites," confirms Udi Netzer, Sr. VP Sales & Marketing at VCON. "The call itself took place with minimum effort and certainly reduced the cost of transmission from a satellite link to that of three local telephone calls."

"With such important daily issues to contend with, governmental and high profile personnel do not have the time or resources to be in different places at one time, and videoconferencing provides the perfect cost-performance solution to being `everywhere' when needed," added Mr. Netzer.

Mr. Netzer continued, "Unlike expensive and complicated satellite transmission, videoconferencing provides efficient and increasingly more stable real-time communication. We expect governmental agencies, embassies and remotely located offices to utilize this cost effective technology on a regular basis as they would a telephone." VCON's solutions are already implemented on a large scale in the Russian Duma.

The QuickConnect family of compact and portable small group videoconferencing systems encompass all the needs of the customer, from 1 ISDN (H.320) connection to 3 at 384 Kbps as well as a 10 Mbps 3 COM Ethernet card for both IP communication over LAN (H.323). The QuickConnect family offers TV quality videoconferencing communication, pan-tilt-zoom camera and far-end camera control, simple remote control operation, user-friendly interface, full data collaboration (T.120 supported via MS NetMeeting) and more.

VCON is among the world's leading developers and manufacturers of meeting technology for ISDN and IP networks. The company offers its customers comprehensive meeting solutions for desktop, portable, and group conferencing. VCON has established strategic alliances with leading high tech companies worldwide to offer high quality audio, video, and data collaboration. The company markets its products and services exclusively through a network of reseller partners, OEMs, and value-added resellers worldwide. Headquartered in Israel, VCON Ltd., holds subsidiaries in the US, China, Germany, Japan, Spain and the United Kingdom. VCON Inc. of Dallas, the US subsidiary of VCON, Ltd. has offices in Atlanta, Chicago, New York, San Jose, and Washington, DC.

For more information on VCON products or services, visit our Web site at www.vcon.com.