Siemens and AltiGen Announce Development and Marketing Alliance; Siemens to Supply IP Phones for AltiGen Telecom Server.

Business Editors

BOCA RATON, Fla. & FREMONT, Calif.--(BUSINESS WIRE)--Oct. 11, 2000

Siemens Information and Communication Networks, Inc. and AltiGen Communications (Nasdaq:ATGN) today announced that Siemens will supply standards compliant IP-based telephones for AltiGen telecom servers and IP based computer telephony solutions. Siemens and AltiGen will collaborate on development, training, technical support and joint marketing of Siemens optiPoint 300 Advance IP telephones, part of the open-standards HiPath workpoint family, with AltiGen's AltiServ(R) system. This collaboration is the first of its kind in the IP PBX industry and stresses the importance of adherence to interoperability standards in the emerging IP telephony market.

"As companies increasingly move towards IP-based communication solutions, the ability to choose non-proprietary workpoints will become a key issue for customers," said Dr. Gisela Fuchs, Siemens' vice president of IP Communications and Applications. "Our new relationship with AltiGen is the result of a shared vision between our two companies to deliver choices that increase the value of our customers' enterprise communications and data networking infrastructure."

"Combining Siemens IP phones with AltiGen's telecom server will allow our customers to create an even greater, feature-rich communications solution and capitalize on the cost savings associated with Voice over IP," said AltiGen CEO Gilbert Hu. "We are also confident that this collaboration will be well received by our resellers who are constantly looking to add value to the solutions they provide to their customers."

Both companies will collaborate to develop seamless integration and dialing features between the optiPoint 300 Advance phone and the AltiServ(R) system. The first phase of interoperability testing is already complete, and the optiPoint 300 Advance has been certified as interoperable with the AltiServ(R) system. With the launch of Open Edition (OE) 4.0, AltiGen will enhance its integrated VoIP gateway, which connects to the optiPoint 300 Advance IP telephone via the H.323 standard, by providing support for IP extensions. In addition to basic H.323 features, the Siemens IP telephone provides a flash key function that allows the activation of AltiServ(R)-specific features such as conferencing, music on hold, and voice mail from the IP telephone's keypad.

Siemens and AltiGen share a common distribution strategy, leveraging major distributors such as Ingram Micro and Tech Data to deliver their products to value added resellers and system integrators. Today's announcement will enable AltiGen's certified resellers to purchase Siemens IP telephones through the same channels through which they are already purchasing the AltiServ(R) system, without the need for additional certification. The relationship between the two companies includes a wide range of joint marketing activities for promotion of the Siemens IP telephone through distributors to AltiGen's network of 200+ authorized resellers.

AltiGen's AltiServ(R) with OE 4.0 systems with Siemens' IP telephones are now in field trials, and will become generally available next month. The combined product was first demonstrated at Networld + Interop 2000 in Atlanta, Georgia, September 26-28.

About Siemens' optiPoint 300 Advance

The optiPoint 300 Advance is an H.323 compliant high-featured business telephone with a built-in Ethernet network adapter for direct connection to a company's local area network (LAN). As the most robust phone in its class, it permits calls between AltiGen's AltiServ(R) telecom server, other IP-enabled communication systems, other IP telephones, PSTN phones and H.323 standard-compatible PC clients. It offers many compelling features, including Siemens' award winning OptiGuide(TM) interface that allows users to access and set up phone features by simply scrolling through a menu and selecting the desired option from the phone's 24-character LCD display. Other features include automatic redial, on-hook dialing, hands-free operation, 16 programmable speed dial numbers and date/time display. The phone also stores details on the last 20 unanswered calls, enabling the user to retrieve contact and time called information (whenever available) for these callers. The optiPoint 300 Advance is manageable via web browser and supports industry standards such as SNMP, TFTP, HTTP and DHCP, greatly simplifying the management of the telephone system.

About the AltiServ(R) Telecom Server

Acclaimed for its reliability and full feature support, the AltiServ(R) telecom server provides small-to-medium size enterprises with a high-performance phone system that is affordable, flexible and scalable. AltiServ(R) with OE 4.0 delivers an unsurpassed range of communication applications including PBX, Voice over IP, call center, auto-attendant, email, voice mail, and Web contact management. OE 4.0 provides businesses with rich real time call information and historical reports providing built-in management information. With expanded Voice over IP capabilities and support for standard IP telephones -- including the Siemens optiPoint 300 Advance -- AltiServ(R) with OE4.0 empowers businesses for the emerging convergence of voice and data networks.

About AltiGen Communications

AltiGen Communications, Inc., is a leader in the server-based telecommunications system market. AltiGen designs, manufactures and markets next generation, server-based telecommunications systems that use both the Internet and the public telephone network to enable an array of applications that take advantage of the convergence of voice and data communications. AltiGen products are available from authorized resellers and come with a one-year warranty. AltiGen's AltiServ(R) has been recognized for excellence with nearly 30 industry awards, including a 1999 Editor's Choice Award from PC Magazine and a 1998 Analyst's Choice Award from PC Week Magazine. For more information, call 1-888-ALTIGEN or visit the Web site at www.altigen.com.

About Siemens Information and Communication Networks

Siemens Information and Communication Networks, Inc. is a leading provider of integrated voice and data networks with a comprehensive portfolio of Internet Protocol based products and solutions for enterprises, carriers and service providers. The company's headquarters is in Boca Raton, Florida. Last year, the company's 7,000 U.S. employees generated sales of nearly $2 billion.

Siemens Information and Communication Networks Inc. comprises Siemens Carrier Networks LLC, Siemens Enterprise Networks LLC and Optisphere Inc. Siemens Enterprise Networks, LLC., is a leading provider of converged enterprise-class networks. For more information, visit the company's Web site at www.icn.siemens.com.

Safe Harbor Statement:

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements regarding collaboration between Siemens and AltiGen. These statements reflect management's current expectations. However, actual results could differ materially as a result of unknown risks and uncertainties, including but not limited to, risks related to AltiGen's limited operating history. For a more detailed description of these and other risks and uncertainties affecting AltiGen's performance, please refer to the information set forth under the caption "Risk Factors" in the final prospectus dated October 4, 1999 related to AltiGen's initial public offering, a copy of which can be obtained from CIBC World Markets, Oppenheimer Tower, World Financial Center, New York, New York; telephone number 212/667-7000.

Note to Editors: optiPoint and OptiGuide are trademarks of Siemens AG. AltiServ is a registered trademark of AltiGen Communications Inc. All other trademarks mentioned herein are the properties of their respective owners.