"Our new VoIP phone is a milestone for AltiGen," remarked AltiGen CEO Gilbert Hu. "The IP 710 was designed and engineered based upon input from our customers and partners over the past several years. We have supported VoIP telephones since 1998, but this phone completes the gap between advanced business features on the telephone and IP telephony. The phone is stylish and feature rich while maintaining AltiGen's tradition of intuitive, easy to use technology."

Darrell Murray, President of NET Systems Communications and authorized AltiGen Partner commented, "Compared to other VoIP phones, the IP 710 offers better functionality for businesses, and looks fantastic."

The IP 710 is designed to empower the user. Bringing stylish form and functionality to the desktop, it makes sophisticated features simple and intuitive to use. Users have single button access to voicemail, activity/presence selection, voicemail greeting selections, call recording, call conferencing, call transferring, and even placing calls to employees in other countries.

With the 4 line, backlit liquid crystal display the IP 710 is capable of displaying time, Caller ID name and number, real-time call center workgroup statistics, do-not-disturb, and call forwarding status. The IP 710 can be personalized with 15 backlit user-defined keys and can be setup for any combination of configurable features like, but not limited to, speed-dialing, extension busy/ringing appearances, call appearances, line appearances, and workgroup activity status.

The IP 710 is compatible with 3rd party hands free headsets using AltiGen's dedicated headset answering button and amplified industry standard RJ9 and 2.5mm headset ports and also provides 14 combined traditional and melodic ring tones which can be assigned to line and extension appearances on the programmable keys.

Some of the phone's key features and benefits include:

• 15 user programmable keys for extension, call and line appearances,
  access to AltiServ system features, and speed dialing

• Contact Center Workgroup real-time statistics on the telephone display
  for use by workgroup service agents or supervisors

• One button access for voice recording to your personal voicemail box or
  to a centralized server

• One button access to voicemail

• One button access to activity/presence codes

• Auto answer feature allowing calls to be answered automatically to a
  defined voice device within a specific ring time -- Great for call
  center service agents with headsets or office operators

Availability
The IP 710 was made available starting, October 3, 2005 through all AltiGen Authorized Partners.
For more information on the IP 710, please visit our website at www.altigen.com or call AltiGen Communications, Inc. at 1-888-258-4436

About AltiGen Communications
AltiGen® Communications, Inc., is a leader in the IP telephony and contact center market. The company designs, manufactures and markets next generation, IP-PBX telephone systems and IP contact centers that use IP networks, the Internet and the public telephone network to enable an array of applications that take advantage of the convergence of voice and data communications. AltiGen Communications products are available from authorized distributors and resellers AltiGen's AltiServ has been recognized for excellence with more than 35 industry awards since 1996. Deloitte & Touche® has named AltiGen, as the 111th fastest growing company in the U.S. AltiGen Communications remains the leading manufacturer of delivered next-generation business telephony for the SMB market and is a certified Microsoft® Gold ISV. 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 call center solutions in the small to midsize marketplace and the successful introduction of our new IP 710 phone. 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 June 30, 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.