Ten Pine Advisors Bids $2.03 to Acquire Altigen Communications, Inc.

NEW YORK -- Ten Pine Advisors, LLC today announced that it has raised its bid to acquire Altigen Communications, Inc. (NASDAQ: ATGN) to $30.5 million or $2.03 per share, from its prior bid of $28 million or $1.86 per share. The new offer represents a premium of 30% over yesterday's closing price. Ten Pine Advisors is a significant shareholder of Altigen and filed a Schedule 13D with three amendments, the most recent filed on August 14, 2006. Please refer to Ten Pine's Securities and Exchange Commission filings on Altigen for further information.

"We believe we are making a valid and fair offer with this revised bid," said Douglass Bermingham, managing partner of Ten Pine Advisors. "To our knowledge, the most recent relevant transaction in the voice over IP (VoIP) space was last month's proposed acquisition of Vodavi Technology, Inc., another Nasdaq-listed company. That transaction was based on an enterprise value to revenue ratio of approximately 0.5 times compared to Ten Pine's offer for Altigen on an enterprise value to revenue ratio of more than 1.0 times."

Ten Pine Advisors feels that Altigen has successfully weathered the dot com bust through its conservative corporate management style and for its technological prowess as evidenced by the number of new leading edge VoIP products released by the firm. Altigen has done a terrific job advancing its technology lead over competitors and translating leading edge technology into products on the market. Added Bermingham, "Ten Pine's revised bid underscores what we see as significant opportunities for Altigen, including capitalizing on the need for small and medium-sized businesses to upgrade to more advanced VoIP products."

Ten Pine is also puzzled by the increase of insider transactions at Altigen. Noted Bermingham, "In looking at Altigen's independent board members as a group (four people), shares beneficially owned by this group have declined by more than 65% during the past six months. We find this curious considering the board chose to ignore our prior offers and now look forward to a discussion with them regarding this most recent offer."

Shareholder activism is a mantra now moving into the mainstream of investment risk management. According to an editorial by Arthur Levitt, Jr., former chairman of the SEC, in the October 27, 2006 Wall Street Journal, "For years, shareholder advocates have been working to gain better access to companies' proxies so that they can put forward resolutions and, most importantly, their own candidates for directors slots. Even though boards of directors have improved considerably since the passage of new independence standards and disclosure requirements in Sarbanes-Oxley, the ability of shareholders to remove directors is critical when seeking to revive a moribund corporation." On several occasions, Ten Pine has attempted to open a dialog with management concerning adding new independent board members who could develop strategies aimed at revitalizing Altigen.

About Ten Pine Advisors, LLC

Ten Pine Advisors LLC is a Delaware Corporation that invests in micro cap and small cap public companies.

This press release is not a proxy solicitation. A proxy solicitation, if any, will only be made through a written proxy statement furnished to the Company's stockholders.