Picazo Acquires NetACD Web-Based Contact Software Business from Compaq.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 10, 2000

Computer Telephony Leader Adds Human-Enabling Web

Communications Technology for Increased Response

Interaction and e-Commerce Transactions

Picazo Communications, Inc., the leading provider of server-based telephony solutions and leader of installed server-based PBX systems with an 84% market share(1), today announced it has acquired NetACD(TM), the innovative Web-based contact software business from Compaq Computer Corporation, the largest global supplier of computer systems.

Delivering human-to-human interaction via the Internet with integrated, real-time voice, video, and data communications, the NetACD software solution dramatically increases the probability of successful e-business transactions between a company and its prospective and existing customers -- and reduces the number of sales that might otherwise go to the competition.

The proliferation of e-commerce transactions within an exploding Internet-based market is driving the need for new ways of "re-humanizing" what has essentially become a faceless sales interface, where unanswered questions on a company's web site can lead to a sale for the competition. Most e-commerce based call center solutions available today cannot provide the level of sophisticated interaction that customers want and need -- the h2h factor (human-to-human factor) -- in order to obtain information quickly, get questions answered effectively, and then act on those answers in a single, seamless session.

"NetACD software easily and cost-effectively solves this very complex sales and customer service dilemma by enabling a company to regain control of customer interaction," said Jose Picazo, president and chief executive officer for Picazo Communications. "With NetACD, we can now offer a very exciting collaborative and interactive transaction processing solution that human-enables the Web by marrying integrated, real-time call center voice functions with value-added video and data in a seamless Internet-based application. As an established leader in the server-based PBX market, this addition to our next generation solutions portfolio is a logical extension of our commitment to provide the most advanced, scalable, open platform telephony solutions that can support a company's expanding e-business opportunities."

Human-Enabled Web Capabilities Dramatically Increase Successful Completion of E-Commerce Transactions

In most call center sales scenarios, a potential customer has the ability to interact with an agent in order to ask questions, discuss purchasing concerns, and match the right product or service to their individual needs. With NetACD software, this call center communications function has been incorporated into the world of e-commerce through the seamless integration of real-time voice, video, and data communications in an Internet-enabled application.

With the single click of a button, NetACD software allows a web site visitor to speak directly to a live agent over the Internet. Once the agent engages with a potential customer, the customer can both hear and/or see the agent through a Web page. NetACD software can also allow an agent to temporarily access a customer's browser, showing them where useful information can be found throughout the Web site or provide help with e-commerce transactions. Customers and agents can interact real-time and exchange information so those customers can quickly and easily choose the products and services they need -- when they need it!

NetACD Features Provide Quality and Ease of Use for Interactive Online Buying Experience

The NetACD software solution is comprised of several integrated components for optimum Web-enabled call center interaction:

--   NetACD Agent Software -- which provides the basic agent
     communication functionality and interfaces with the agent's PC,
     server/Call Manager and other peripherals, including camera,
     video capture board, microphone, sound card, and speakers. This
     software component relies on Microsoft's NetMeeting(TM) product
     to provide basic agent communications.

--   NetACD Call Manager -- which initiates and terminates calls,
     synchronizes voice and data, authenticates applications and agent
     workstations, controls call treatment, and manages application
     data sharing.

--   NetACD Configuration Manager -- which provides an interface to
     configure the solution set, including Automatic Call Distributor
     (ACD) agent profiles, ACD group profiles, Call Manager process
     information, and tracing and logging.

--   NetACD Queue -- which provides contact queuing functionality to
     distribute and uniformly manage the contacts on a
     first-in/first-out basis. This function provides agent log-on,
     agent log-off, agent available, agent unavailable, skills-based
     routing, statistics, and customer queue management functionality.
     While in queue, customers can view video and hear audio
     information and get queue status and expected wait time.

--   NetACD Management Reports -- which provides for flexible
     customized reporting in graphical and text form of call, agent,
     agent activity, ACD activity, and detailed call reports.

Configuration and Availability

The NetACD product will operate on any Pentium(R) class system running Microsoft(R) Windows NT(R) 4.0 Server. For full voice, video and data interaction, an agent's workstation requires a 150MHz Pentium PC with at least 32MB of memory, Windows(R) 95, Windows(R) 98 or Windows NT 4.0 Workstation, Microsoft Internet Explorer, a video camera, video capture card, microphone, sound card, and speakers. Customers running most PCs with Windows 95, Windows 98 or Windows NT Workstation can take advantage of text chat, call back and

interactive collaboration without multi-media equipment. Multi-media enabled PCs, those equipped with video streamers, sound cards or video cameras, will enable customers and agents a richer complement of interactive voice and video functionality, in addition to the text chat, call back and collaborative features.

NetACD software will be sold by Picazo, as well as through the Compaq Professional Services channel worldwide, based on a reseller agreement with Picazo. As part of Picazo's strategy for delivering the industry's first Windows 2000-based telephony server, NetACD will be integrated into the VoiceMedia(TM) 2000 Communications Platform solution in a future release, providing users with the most dynamic, scalable, and feature-rich set of telephony applications for e-commerce environments.

Picazo Communications, Inc. designs, develops, and markets business communications solutions including telephony application software and integrated, open server-based telephony systems, specializing in highly integrated standards-based solutions. With thousands of systems shipped, the company is the leader in this high-growth market. Picazo is headquartered in San Jose, with additional offices located throughout the U.S. Information about Picazo and its products can be found at www.picazo.com or by calling 800/464-3274.

Note to Editors: Picazo, the Picazo logo, VoiceMedia, and NetACD are trademarks or registered trademarks of Picazo Communications, Inc. Compaq is a registered trademark of Compaq Computer Corporation. Pentium is a registered trademark of Intel Corporation. Microsoft, NetMeeting, Windows, and Windows NT are either registered trademarks or trademarks of Microsoft Corporation. Other product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. Technical specifications and availability are subject to change without notice. Some of the described features and capabilities may be priced and sold separately.

(1) 1999 Frost & Sullivan Industry Analysis