AltiGen Signs Exclusive Agreement With Italian Distributor Hypercom

Updated: January 06, 2011

SAN JOSE, CA -- 10/16/09 -- AltiGen® Communications, Inc. (NASDAQ: ATGN), a leading provider of 100 percent Microsoft-based VoIP business phone systems and Unified Communications solutions, announced today that it has signed an exclusive agreement with Italian distributor and telecom equipment provider Hypercom. The company will direct the sale and distribution of AltiGen's Microsoft-certified applications through Telecom Italia.

Hypercom, with offices in Rome, Milan and Padova, has been supplying telecommunications solutions to Telecom Italia since 1980. The company has its own business phone system product line, CIE, and has added the AltiGen product line to provide VoIP, advanced call center capability and integration with Microsoft Office Communications Server 2007.

"We evaluated products for more than a year," said Hypercom Director Michele Giamundo. "AltiGen was quite different from competing technologies in that it is software-based and provides native integration with Microsoft. Most importantly, its comprehensive solutions are engineered in-house by AltiGen. It was critical to us that AltiGen be in control of the technology and able to make extensive changes to meet our requirements."

Hypercom and AltiGen began working together in 2008 to localize AltiGen products. In July, the solution was submitted to TILAB Laboratories in Turin, Italy to verify functionality and certify compatibility and connectivity with Telecom Italia's network infrastructure. In September, Hypercom was notified by Telecom Italia that the products had completed all requirements and were certified for sale in Italy.

"We have been extremely impressed by Hypercom's drive to introduce a Microsoft-based solution to the Italian market," said Mike Plumer, AltiGen Vice President of Sales. "They brought a team from Telecom Italia to visit AltiGen earlier this year, and have been instrumental in the adaptation of the product for Telecom Italia and the Italian market. Through their partnerships and initiative they have been able to fast track introduction of the AltiGen solution to Italy."

Hypercom has now deployed the AltiGen solution as a complete VoIP and Call Center solution for a distribution company, a clothing designer, and as an adjunct call center to an existing Cisco PBX. Through Telecom Italia, Hypercom will be offering turnkey packages to allow companies to integrate existing PBX's to Microsoft OCS as well as utilize AltiGen's advanced mobility capabilities.

"AltiGen's Microsoft integration has been very well received by Telecom Italia's marketing department," added Giamundo. "Customers are looking for advanced features in VoIP, mobility, and integration with Exchange and OCS 2007. Telecom Italia sees AltiGen as a very good solution to offer its customers."

About AltiGen Communications

AltiGen Communications, Inc. (NASDAQ: ATGN) is a leading provider of 100 percent Microsoft-based VoIP business phone systems and Unified Communications solutions. Having more than 10,000 customers around the world, AltiGen solutions are designed for high reliability, ease of use, seamless integration to Microsoft infrastructure technologies, and are built on a scalable, open standards platform. AltiGen's worldwide headquarters is in Silicon Valley, California, with international operations based in Shanghai, China. Local sales, service and support are provided by AltiGen's worldwide network of over 300 certified partners. For more information, call 1-888-ALTIGEN or visit the web site at www.altigen.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 the continued market acceptance of our Voice over IP telephone systems and AltiGen's successful partnership with Hypercom in entering the Italian marketplace. These statements reflect management's current expectation. 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 AltiGen's Annual Report on Form 10-K for the fiscal year ended September 30, 2008 and all subsequent current reports on Form 8-K and quarterly reports on Form 10-Q. All forward-looking statements in this press release are based on information available to AltiGen as of the date hereof and AltiGen assumes no obligation to update these forward-looking statements.

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