Avistar Announces the Securities Community Network - SCN

Industry leading platform to deliver an integrated video and web conferencing solution to financial services firms and their corporate clients via a secure and cost effective community network  

San Mateo, CA - June 5, 2008 - Avistar Communications Corporation (Nasdaq: AVSR) announced today the formation of the Securities Community Network (SCN), a new strategic platform that will provide real time desktop video and data collaboration for buy-side and sell-side research communities and their corporate clients.  

The SCN allows buy and sell side firms to deliver more effective and timely information from the desktop via a video and web conferencing based community. SCN will provide sell side institutions the ability to rapidly deliver analysis based themes, strategies and interpretation of breaking information to investors and buy side firms. Additionally, the SCN can allow corporate clients to produce more effective road shows while building stronger research and investor relationships.

Through real time video and data collaboration, the SCN will allow research leaders and corporate issuers to contact relevant parties within the securities industry, at the click of a mouse, and provide time-sensitive and valued information to their industry contacts. This will help improve the quality of information and research to all community members, while promoting the use of video over disruptive and costly business travel.

With oil prices expected to remain high, firms are taking immediate actions to cut their travel budgets.  In a May 2008 UBS survey of corporate travel managers at 80 companies, 42 percent of the respondents said their companies are reducing air travel expenses this year as compared to last. That figure is up from 26 percent in October 2007-the largest year-to-year variance since UBS began conducting the twice-annual survey two years ago.  "Prospective members of the SCN are projecting a 70% reduction in their T&E budgets while increasing productivity amongst their Research teams by 50%.  These projected improvements are as a result of an ability to access a secure community network of key business partners without having to jump on airp***s for a face-to-face meeting," said Simon Moss, CEO of Avistar.

The SCN will be launched as a service to select buy and sell side firms in September 2008.  Corporate clients will follow with open membership taking place in January of next year. Leading buy side, sell side and corporate firms have expressed early interest in the platform and will signup over the course of this summer.

"The SCN community is the next stage in the evolution of networked professional communities," added Moss. "We have an especially strong experience among financial services clients and have been able to leverage both this and our network of trusted partners and clients. This combined with the capabilities of world class Software provides a platform for interaction that is powerful, effective, simple to deploy, and will increase in value as more and more firms, technology providers and partners join the community. The SCN will revolutionalize the Financial Services supply chain with personal, face-to-face interaction available instantaneously to thousands of users globally. This level of cost efficient, ad hoc and direct interaction, in real-time will promote more timely information distribution and use, more efficient business practices, increased productivity and revenue, while lowering travel costs and carbon emissions for each SCN member, all without leaving the desktop or disrupting business activities"

Cautionary Note About Forward Looking Statements

Statements made in this news release that are not purely historical, including but not limited to statements regarding the features, benefits and availability of the SCN are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. Such statements are subject to risks and uncertainties that could cause actual results to differ materially, including such factors, among others, as volatility associated with Avistar's sales and licensing activities, market acceptance of Avistar's products, increased competition in the market for unified communications, technical challenges associated with product development and ongoing technological developments and changing industry standards.  As a result of these and other factors, Avistar expects to experience significant fluctuations in its licensing activities and operating results, and there can be no assurance that Avistar's future results will meet expectations. These and other risk factors are discussed in Avistar's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission from time to time. Avistar disclaims any intent or obligation to update these forward-looking statements.

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 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 www.avistar.com

Contact

Ken Lempit
Austin Lawrence Group
+1 203-391-3006
k.lempit@austinlawrence.com

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