Avistar Communications Announces Filing of Form 15 to Suspend SEC Reporting Obligations

Avistar Communications Corporation (www.avistar.com), a leader in unified visual communications solutions, today announced that it has voluntarily filed a Form 15 with the Securities and Exchange Commission (SEC). Upon such filing, the Company’s obligation to file certain reports with the SEC, including annual, quarterly, and current reports on Forms 10-K, 10-Q and Form 8-K, respectively, will be immediately suspended.

After thoughtful and deliberate consideration, the Company’s Board of Directors made this unanimous decision based upon a thorough review of the associated costs and benefits of being an SEC-registered company and the underlying regulatory reporting obligations. The Company believes that the incremental cost of compliance with SEC public reporting requirements does not provide a discernible benefit to the Company and its shareholders.

The Board believes that this step will enable the company to further refine Avistar’s focus and execution to:

• Demonstrate continued revenue growth including developing recurring revenue streams.
• Explore new and expanded strategic business opportunities that add to Avistar’s list of industry leading OEM/licensing partners.
• Develop new strategic business investment partners to accelerate Avistar’s growth into adjacent market segments.
• Enhance the Company’s long-term value by highlighting revenue growth, product value, the pipeline of opportunities and growth with respect toany future strategic decisions.

Bob Kirk, CEO of Avistar, said, “We have deliberately chosen to file a Form 15 with the SEC to allow Avistar to focus on expanding our business without the associated costs of regulatory reporting and filing. Although the cost savings associated with this decision provide Avistar the opportunity to invest more deeply in our business execution strategy, there are larger benefits to the company, such as being more flexible in our communications strategy, like many of the competitors in our space, while building the long-term valuation of the company that better reflects our technologies, revenue growth, pipeline and market potential.”

Kirk concluded, “As I’ve stated previously, our constant goal is to expand our revenues in what we believe to be a rapidly growing market, with a product portfolio that is world class. We’re confident that today’s step will help us fulfill this commitment and afford us more strategic options going forward.”

About Avistar Communications Corporation

Avistar delivers advanced and proven personal videoconferencing capabilities to technology partners and end users worldwide. Many leading technology firms such as Citrix, IBM, LifeSize, and Logitech choose Avistar’s modular software technology to power their unified communications solutions because it is a more flexible, efficient and smarter alternative. Avistar’s innovative software-only, fully virtualized and bandwidth managed technology solves major infrastructure and user challenges associated with enabling video communications between individual employees and/or teams throughout an organization. Companies across a wide variety of industries depend on Avistar’s desktop videoconferencing solutions for everyday business communications with deployments ranging in size from 30 to 35,000 users. To learn more about Avistar’s industrial, scalable and economical desktop videoconferencing technology, please visit www.avistar.com.

Forward Looking Statements

Matters discussed in this press release contain forward-looking statements under the federal securities laws. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and there is no guarantee that we will attain the anticipated benefits, goals and objectives. These forward-looking statements are subject to a number of risks and uncertainties. Such factors include, without limitation, Avistar’s lengthy sales cycle, 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 completion of Avistar’s deliverables to customers, ongoing technological developments and changing industry standards, the ability of Avistar’s distributors to sell Avistar’s products to end users, the capital markets for both debt and equity, and challenges associated with protecting and licensing Avistar’s intellectual property. These important factors and other factors that potentially could cause actual future results to differ materially from current expectations are described in Avistar’s prior filings with the SEC. Readers are referred to such filings.