Sony Selects 8x8 Video Communications Chip for New Group Conferencing System; PCS-1500 Set-Top System Sets New Standard for Video Quality, Feature Set.

SANTA CLARA, Calif.--(BUSINESS WIRE)--April 8, 1999--8x8 (Nasdaq:EGHT), a leading supplier of multimedia communication technology and systems, today announced that Sony Electronics is using 8x8's Enhanced Video Communications Processor (VCPex) in Sony's new PCS-1500 set-top video conferencing system.

The PCS-1500 is Sony's entree into the fastest growing area of the video conferencing market, the small group system segment. The PCS-1500 is a compact, television set-top video conferencing system that delivers business-quality video conferencing via Integrated Services Digital Network (ISDN) connections and IP-based LAN/WAN networks. The VCPex is an extension of 8x8's Video Communication Processor (VCP) architecture, which is the most widely used video communications processor in the video conferencing industry.

"Our goal with the PCS-1500 was to produce the most compact yet full-featured business video conferencing system in the market," said Glenn Adamo, vice president, video conferencing, of Sony Electronics' Business and Professional Group. "By integrating video processing with both H.320 ISDN and H.323 IP communications stacks on to a single chip, 8x8's VCPex chip provided the best means of achieving that end. Further, the video quality provided by 8x8's H.263 video compression algorithms was in keeping with Sony's commitment to and reputation for image quality."

About the PCS-1500

Three models of the PCS-1500 are available. The basic system runs at speeds of up to 15 frames per second (fps) at connection rates of 128kbps. The PCS-1500U (PCS-1500 Upgraded) is capable of 30fps at 384kpbs. The PCS-1500ME

(PCS-1500 Multiple Endpoints) also supports connection rates of up to 384kbps, and it has built-in, standards based multipoint functionality, which allows up to four H.320 standard sites to participate in a video conference without using an external bridge or bridging service. During multipoint calls, each connection can be at either 64kbps or 128kps.

All of the PCS-1500s offer a dockable pan/tilt/zoom camera with auto tracking and a compact Remote Commander unit. The auto tracking feature lets the PCS-1500 to follow a subject, allowing him or her to move freely about the room. The Remote Commander supports all command functions, including easy install, dialing, camera select and control, picture-in-picture, volume, microphone control, and basic Sony Trinitron television control.

All PCS-1500 versions use the latest video codec technology (H.263) to provide enhanced video quality and frame rates at all connect rates. In addition, PCS-1500 supports the H.261 codec to ensure compatibility with older video conferencing systems. Support for H.323 conferencing over IP-based local and wide area networks (LANs and WANs) is planned for October 1999. All units are H.323 ready.

"The entrance of a brand like Sony's into the small group system segment of the video conferencing market will help continue the growth of this segment," said Paul Voois, 8x8's chairman and CEO. "As with all its products, Sony's video conferencing systems define a new level of quality. This is consistent with our goal of continuing to market and support our integrated circuits for video conferencing solutions and we are pleased to be associated with such a competent effort."

"It's clear that conference users are looking for appliance-style room conferencing systems offering excellent quality and functionality at prices under $10,000," said Andrew W. Davis, senior analyst with Forward Concepts, a research firm that follows the video conferencing industry. "We expect this segment of the market to grow to over $600 million by the year 2002 as these products replace both high end room systems and low end personal products."

About the VCPex

The VCPex uses a dual-programmable architecture, combining both a 32-bit RISC microprocessor and a 64-bit digital signal processor (DSP) on a single chip. The RISC microprocessor executes 40 million instructions per second (MIPS) and is used for call control, audio/video multiplexing and user interface implementation. The DSP incorporates a single instruction, multiple datapath (SIMD) engine especially developed for processing audio and video data, and it can perform over 1.8 billion operations per second. The VCPex also incorporates a graphic/video mixer, which allows text and graphics to be easily overlaid on video. 8x8 also supplies video conferencing software for the VCPex that takes full advantage of the chip's architecture and flexibility to provide superior video and audio quality with minimal end-to-end delay. The power, flexibility and programmability of a single VCPex chip enables 8x8 to deliver 30 frame-per-second video performance over high bandwidth ISDN telephone lines or IP networks.

About 8x8

8x8 is a leading manufacturer of digital telecommunications technology, including Internet Protocol (IP) telephony gateways, software and semiconductors. By leveraging its technology expertise in audio and video compression and communication protocols, the company is providing systems and software to network and telecommunications equipment providers, cable television system operators, and local exchange carriers. The company is headquartered in Santa Clara, California. For more information, visit 8x8's web site at http://www.8x8.com.

This press release contains forward-looking statements. 8x8's actual results may differ materially from the results discussed, implied or forecasted in the forward-looking statements due to factors including in particular a history of losses, uncertainty of future profitability, potential fluctuation in future operating results, dependence on key customers, the uncertainty of market acceptance of video conferencing systems, rapid technological change, compliance with industry standards, dependence on key personnel, dependence on new product introduction, current and potential competition and the need for additional capital. Further information on these and other factors that could affect the actual results of 8x8 are included in 8x8's Report on Form 10-Q for the quarter ended December 31, 1998, which is on file with the Securities and Exchange Commission. 8x8 assumes no obligation to revise or update any forward-looking statements contained in this press release.