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 over 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 users gain instant messaging-style ability to initiate video communications across and outside the enterprise. Patented 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 more than 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 IBM Corporation, Sony Corporation, Sony Computer Entertainment Inc. (SCEI), Polycom, Inc., Tandberg ASA, Radvision Ltd. and Emblaze-VCON.

For more information, visit http://www.avistar.com

SOURCE Avistar Communications Corporation

http://www.avistar.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 over 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 enables users to gain instant messaging-style ability to initiate video communications across and outside the enterprise. Patented 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 83 patents for inventions in video and network technology and licenses IP to videoconferencing, rich-media services, public networking and related industries. Current licensees include IBM Corporation, Sony Corporation, Sony Computer Entertainment Inc. (SCEI), Polycom, Inc., Tandberg ASA, Radvision Ltd. LifeSize Communications, Inc., and Emblaze-VCON.

For more information, visit http://www.avistar.com.

SOURCE Avistar Communications Corporation

http://www.avistar.com

"This notice, in our opinion, is an unfortunate development and does not reconcile with the significant progress that Avistar continues to make in the high growth unified communications market. During the past two quarters we have generated greater than 50 percent sequential revenue growth and improvement in net loss. We have also realigned our cost base to position the company for positive cash flow, and expanded distribution with commitments for more than 100,000 seat sales over the next several years," stated Simon Moss, CEO, Avistar. "Additionally, we have completed a contract with IBM, through which we will be incorporating our dynamic network management technology into an upcoming release of IBM's unified collaboration product offerings. The IBM contract includes up-front payments of $6 million, $3 million of which has been received in November, and an on-going royalty on IBM's product sales that incorporate our technology after an initial threshold of sales has been reached. This agreement with IBM promises to generate more proceeds over its term than the dollars represented in Avistar's current market cap. We have also recently announced the addition of 10 new patents to our extensive intellectual property portfolio, relating to the areas of Voice over IP (VoIP) and instant messaging. As a result of these successes, we have now reached the point where Avistar's performance is becoming predictable enough that we believe we will be able to provide performance guidance going into and throughout 2009."

Moss continued, "This notice from Nasdaq is particularly disappointing in light of AVSR's stock performance during 2008. From January 1, the date that this management team took the helm and focused on the difficult task of turning Avistar into a successful company, to the date that we received the notification from Nasdaq, Avistar's stock price had increased by 97 percent. The Nasdaq composite index dropped by 44 percent over that same time period."

Moss concluded, "We are at the point now that, after a huge effort from this management team, we can expect to see continued growth, increased technical competitiveness and associated market success. It is, and will remain, the focus of the team at Avistar to achieve our operational, market and financial goals and thereby build long-term shareholder value. We are hopeful of regaining full Nasdaq listing compliance as a result of our continued success, and will remain focused on our business expansion, as the equity market sorts itself out."

About Avistar Communications Corporation

Avistar (Nasdaq: AVSR) 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. Patent protected dynamic bandwidth management enables thousands of users to access desktop videoconferencing, 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 commitments of more than 100,000 desktop seats to be deployed in over 40 countries in the coming years. 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 93 patents for inventions in video and network technology and licenses IP to videoconferencing, rich-media services, public networking and related industries. Current licensees include IBM Corporation, Sony Corporation, Sony Computer Entertainment Inc. (SCEI), Polycom, Inc., Tandberg ASA, Radvision Ltd., LifeSize Communications, Inc. and Emblaze-VCON.

For more information, visit http://www.avistar.com.

Cautionary Note Regarding Forward-Looking Statements

The statements made in this press release that are not historical facts are "forward-looking statements." These forward-looking statements, include, but are not necessarily limited to, statements regarding the company's intention of regaining and sustaining compliance to The Nasdaq Stock Market, the company's ability to appeal any delisting decision of the Nasdaq staff to the Nasdaq Listing Qualifications Panel, and the availability of additional time periods for the company to regain and sustain compliance with applicable Nasdaq Marketplace Rules, the company's ability to establish positive cash flow, the realization of over 100,000 seat sales over the next several years, the potential contribution of payments and royalties from the recently concluded IBM agreement, and the company's ability to achieve market success and build long-term shareholder value. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties. The company cautions readers of this press release that a number of important factors could cause actual future events and results to differ materially from those expressed in any such forward-looking statements. Such factors include, without limitation, the possibility that the company will be subject to delisting from The Nasdaq Stock Market due to its failure to satisfy the requirements for continued listing, and the challenges associated with accomplishing performance objectives within the highly competitive unified communications market. These important factors and other factors that potentially could cause actual future results to differ materially from current expectations are described in our filings with the SEC, including the company's most recent annual report on Form 10-K, quarterly report on Form 10-Q and current reports on Form 8-K. Readers of this press release are referred to such filings. The forward-looking statements in this press release are based upon information available to the company as of the date of the release, and the company assumes no obligations to update any such forward-looking statements.

SOURCE Avistar Communications Corporation

http://www.avistar.com