AltiGen VoIP Telephone System with AltiWare 5.0 Selected as a 2004 "Product of the Year" by INTERNET TELEPHONY® Magazine

FREMONT, CALIFORNIA, (January 31, 2005) — AltiGen® Communications, Inc. (NASDAQ: ATGN), a leading manufacturer of VoIP telephone systems and VoIP contact call solutions, has been awarded 2004 Product of the Year by Technology Marketing Corporation (TMC ®)’s INTERNET TELEPHONY ® Magazine for their customer-proven AltiWare 5.0 software product. The latest win comes just three months after AltiWare™ 5.0 was named “Best of Show” winner at Technology Marketing Corporation (TMC)'s INTERNET TELEPHONY ® Conference and EXPO Fall 2004 in Los Angeles, where the product was recognized for “innovation in mobility and VoIP solutions.”

AltiWare 5.0, the sixth generation of the AltiWare telephony software platform supporting AltiGen’s AltiServ IP telephone and call center solutions, is the culmination of an unbroken 10-year engineering cycle of innovation. It represents the most significant feature release in the history of the AltiServ product line, highlighted by two key areas that contributed to this year’s success:

AltiGen Employee Mobility Pack with ExtensionAnywhere™
AltiGen’s revolutionary ExtensionAnywhere™ allows employees to activate any telephone — including mobile phones, home phones, hotel phones, et al — with the same capabilities as their AltiGen system extension on their office desktop. The activated telephone then benefits from the same routing, call handling, call transfer, conferencing, and company voice mail capability as any internal extension. ExtensionAnywhere™ takes mobility beyond traditional call forwarding because the system is able to maintain control of the call, regardless of the activated phone’s own capabilities.

Customer Interaction Tools
Today's businesses demand communication solutions that help them become more customer focused, and they’re looking for complete systems that help them control communications costs and improve employee productivity. AltiGen has responded by building a comprehensive suite of contact center solutions into every AltiGen telephone system.

With traditional systems, businesses are required to purchase an entirely separate system to add capabilities such as mobile extensions, advanced routing, centralized call recording, IVR, or telephony integration with Customer Relationship Management applications. AltiGen provides all these features as part of every AltiServ system, and with more than 100 enhancements in, AltiWare 5.0, such as a built-in AltiServ customer contact center, improved VoIP networking capabilities, E-911 support and improved reporting, AltiGen provides businesses with a complete IP telephony solution that is both feature-rich and cost-effective.

“AltiGen’s primary goal is to deliver the most advanced, forward-looking IP telephony systems to customer-centric small and mid-sized businesses—and we’ve committed substantial R&D efforts to do so,” said Gilbert Hu, President and CEO, AltiGen Communications. “AltiWare 5.0 is a reflection of AltiGen’s product-focused commitment and this ‘Product of the Year’ honor from INTERNET TELEPHONY is further validation that our efforts are being recognized by industry leaders.”

“Each year INTERNET TELEPHONY magazine bestows its Product of the Year awards on companies that have demonstrated excellence in technological advancement and application refinements. AltiGen Communications has demonstrated to the editors of INTERNET TELEPHONY that its products or services are committed to quality and innovation while addressing the real needs in the marketplace,” said Rich Tehrani, Group Publisher and Editor-in-Chief of INTERNET TELEPHONY.

The Product of the Year Award winners for 2004 will be published in the January 2005 issue of INTERNET TELEPHONY magazine. INTERNET TELEPHONY has been the VoIP Authority Since 1998.

About AltiGen Communications
AltiGen Communications, Inc. (NASDAQ: ATGN) is a leading manufacturer of VoIP telephony solutions. The company designs, manufactures and markets advanced, IP-PBX telephone systems and IP call centers that leverage both the Internet and the public telephone network. These products enable an array of applications that take advantage of the convergence of voice and data communications to achieve superior business results. AltiGen Communications products are available from independent authorized resellers and strategic partners. AltiGen's AltiServ™ family of telephony solutions has been recognized for excellence with more than 40 industry awards since 1996. Focused on the small to mid sized and multi-site businesses, AltiGen customers benefit from integrated solutions that protect their existing investments, while providing new ways to be more competitive, productive and to save money. AltiGen is a Microsoft® Certified Gold ISV Partner.

For more information, call 1-888-ALTIGEN or visit the Web site at www.altigen.com.

About TMC®
Celebrating more than 30 years as a leading publisher, Technology Marketing Corporation (TMC ®) publishes Customer Inter@ction Solutions ® and INTERNET TELEPHONY ® magazines, Web portal TMCnet.com, and the online publications SIP™, Speech-World™, VoIP Developer™, WiFI Telephony™, WiMAX™, Alternative Power™ and BiometriTech™. TMC ® is also the first publisher to test new products in its own on-site laboratories, TMC ® Labs. TMC ® produces INTERNET TELEPHONY ® Conference & EXPO, VoIP Developer Conference ä and Global Call Center Outsourcing Summit ä . TMC offers live and online certification programs through TMC University. TMCnet.com publishes more than 14 online newsletters. Visit www.tmcnet.com for details.

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 call center solutions in the small to midsize marketplace,  and our ability to develop and deliver award winning telephony solutions into the small and mid-sized enterprise market. 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 the Company's most recent 10Q for the quarter ending March 31, 2005 and the 10K for the year ended September 30, 2004. AltiGen assumes no obligation to update the forward-looking information contained in this press release.