AltiGen Provides Preliminary Second Quarter Results

Company Anticipates Sequential Revenue Growth of Approximately 20%


FREMONT, Calif., April 12, 2001 (PRIMEZONE) -- AltiGen Communications, Inc. (Nasdaq:ATGN), the market leader in IP-PBX phone systems for small and mid-sized business (SMBs), today announced that it expects to report second fiscal quarter 2001 revenue in the range of $2.8 to $3.0 million.

"We are encouraged that we expect to post sequential revenue growth of approximately 20% despite a difficult economic environment," commented Gilbert Hu, President and Chief Executive Officer of AltiGen Communications. "Moreover, we have begun to realize the benefits from past efforts to improve the efficiency of our sales, marketing and advertising thrusts. A key indicator that we observed this quarter was the increased acceptance rate of our products in traditional business environments, which signals to us that we are moving beyond the early-adopter stage and reaching a more mainstream audience. We believe that AltiGen will benefit as small and mid-sized businesses continue to review their internal cost structures for significant saving. As such, we view the current economic environment as an opportunity for AltiGen," concluded Mr. Hu.

The Company plans to announce its fiscal first quarter 2001 financial results on or about April 25, 2001.

About AltiGen

AltiGen Communications, Inc. designs, manufactures and markets next-generation telecom servers that give small- to mid-sized businesses integrated communications systems for streamlined operations and enhanced productivity. AltiGen's telecom server uses both the Internet and traditional phone lines interchangeably and allows businesses to integrate their phones, databases and PC's into one powerful Web enabled communications network. For more information, call 1-888-ALTIGEN or visit the Website at http://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 AltiGen's progress in its operational efficiencies, confidence in upcoming financial periods and market acceptance of our products. These statements reflect management's current expectations. 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 the Company's recent 10-K for the year ended September 30, 2000 and most recent 10Q for the period ended December 31, 2000. AltiGen assumes no obligation to update the forward-looking information contained in this press release.



            

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