July 30, 2008

Avistar and Fontel Join Forces to Market Leading C3 Videoconferencing

SAN MATEO, Calif. and AURORA, Neb., July 30 /PRNewswire-FirstCall/ -- Avistar Communications Corporation , a leading provider of unified visual communications solutions, today announced the availability of Avistar C3 desktop and team videoconferencing through Fontel Inc., a wholesale distributor of voice and data communications products, and its extensive national network of dealers and resellers.

As a result of the agreement, Fontel's resellers can now leverage a standards-based video conferencing solution to enhance their customers' business communication, improve operations and increase productivity and performance. The Avistar C3 bandwidth management enables thousands of users to access desktop videoconferencing, Voice over IP (VoIP), collaboration services and streaming media without requiring substantial new network investment or impairing network performance.

Simon Moss, CEO, Avistar, said, "This partnership combines the power of Avistar C3 technology with Fontel's significant channel network. This opens a new distribution channel for us, and offers Fontel customers a significant value-add to their current technology investment. Companies of all sizes turn to Fontel and its reseller and dealer network for voice and data products, and now they can reap the benefits of our award-winning, interoperable and scalable videoconferencing solutions as well."

Kurt Mitchell, President, Fontel, Inc., said, "Studies have indicated that communication between people is up to 70 percent body language. Avistar's technology brings that face-to-face element to the table and is the next logical bundle with audio and data communications. With today's economy and emphasis on conserving the environment, videoconferencing technology is in high demand. Fontel has about seven different types of dealers and resellers across the United States, and we believe Avistar's C3 technology will more than fit their needs."

The Avistar and Fontel distributor agreement is an expansion of the two companies' partnership that began earlier this year with Fontel supplying end-point device bundles (headsets, speakerphones, web cameras) for Avistar's C3 software. Avistar's desktop and room solutions are available immediately through Fontel and its resellers.

Avistar's C3 patented technology is widely deployed and provides a rapid return on investment. According to the head of capital markets for a leading global bank, "Before Avistar, I was spending more than an hour a day just riding elevators, and that's before you count the time going across town or jumping on airplanes." Another Avistar client funds Avistar directly from its travel budget, as the technology has significantly cut down on travel expenses and time away from the office. For example, just by replacing 10 percent of travel with videoconferenced meetings can result in an annual savings of $2500 per employee. For a company with 1000 employees, that quickly equates to $2.5 million per year. Other benefits include increased productivity, improved revenue generation, reduced carbon footprint and more effective cultural assimilation of dispersed employees, partners and other team members.

Moss concluded, "Fontel's commitment to quality and exemplary customer service, combined with Avistar's technology excellence, bodes well for customers who want a best-in-class solution that delivers significant benefits right away."

About Fontel Inc.

Fontel Inc., based in Aurora, Nebraska, is a wholesale distributor of voice and data communications products. Fontel is committed to offering a high quality, yet competitively priced, portfolio of voice and data communication hardware and software products to dealers, resellers and installers of voice and data communication systems. Fontel's staff provides exceptional service and support, allowing customers to offer efficient and timely service to their end-users accounts. For more information, visit http://www.fontel.com/.

About Avistar Communications Corporation

Avistar creates technology that provides the missing critical element in unified communications: bringing people in organizations face-to-face, through enhanced communications, for true collaboration anytime, anyplace. Its latest product, Avistar C3, draws on more than a decade of market experience to deliver a single-click desktop videoconferencing and collaboration experience that moves business communications into a new era. Available as a stand-alone solution, or integrated with existing unified communications software from other vendors, Avistar C3 provides users instant messaging-style ability to initiate video communications across and outside the enterprise. Bandwidth management enables thousands of users to access desktop videoconferencing, Voice over IP (VoIP) and streaming media, without requiring substantial new network investment or impairing network performance.

Avistar's desktop videoconferencing and collaboration installations are among the world's largest, including more than 18,000 seats sold in more than 40 countries. Clients report as much as a 20 percent reduction in travel expense and carbon emissions, increases in productivity, and immeasurably improved relationship building within their organizations, as well as with suppliers and customers. Avistar holds a portfolio of 80 patents for inventions in video and network technology and licenses IP to videoconferencing, rich-media services, public networking and related industries. Current licensees include Sony Corporation, Sony Computer Entertainment Inc. (SCEI), Polycom, Inc., Tandberg ASA, Radvision Ltd. and Emblaze-VCON. For more information, visit http://www.avistar.com/.

Avistar Communications Corporation

CONTACT: Lisa Farley of Avistar Communications Corporation,+1-212-949-1137, [email protected]; or Margaret Bonilla of BirnbachCommunications, +1-603-548-0693, [email protected], for Avistar

Web site: http://www.avistar.com/http://www.fontel.com/