AltiWare 5.0 Singled Out for Innovation in Mobility and VoIP Solutions at Leading VoIP Event in Los Angeles

FREMONT, Calif. -- October 25, 2004 — AltiGen® Communications, Inc., (NASDAQ: ATGN), a leading manufacturer of next-generation call center solutions and IP-PBX telephone systems announced today that its AltiWare ™ 5.0 has been named a “Best of Show” winner at Technology Marketing Corporation (TMC)'s INTERNET TELEPHONY ® Conference and EXPO Fall 2004.

The INTERNET TELEPHONY ® Expo is an international event focused on telephony innovation and Voice over IP (VoIP). The Best of Show awards emphasize technologic innovation and evolutionary product features. Each winner submitted a thorough application and displayed and demonstrated their product on the show floor.

“We were pleased to demonstrate our AltiWare™ 5.0 solution at the event and are particularly honored to be awarded Best of Show,” said James Puchbauer, Director of Marketing for AltiGen Communications. “This award demonstrates our commitment to continually deliver reliable communications solutions for today's businesses and provide them with innovative IP telephony solutions that allow them to overcome their toughest communications challenges.”

Mobility and reliability were two highlights of the AltiGen telephone system and AltiWare 5.0 that contributed to the Best of Show win:

Mobility:
ExtensionAnywhere™ Capabilities - This revolutionary new feature allows AltiGen IP telephone systems to offer true cellular extensions. Going far beyond old-fashioned call forwarding, ExtensionAnywhere allows any telephone with a unique number to be bound to the AltiGen system and become an extension. With this revolutionary feature, any cell phone can become an AltiGen telephone system extension with the same routing, call handling, call transfer, conferencing and company voice mail capability as any internal extension.

Reliability
AltiWare™ System Redundancy - The AltiWare 5.0 release provides new redundancy capabilities to allow AltiGen telephone systems to operate in a redundancy configuration without interruption. In this configuration, two systems, primary and backup, are configured and connected. The primary AltiServ™ system is in control of all operations while the backup AltiServ system will replicate all configuration, routing, voice mail files and custom phrases from the active server. The backup AltiServ system will also monitor the primary AltiServ server status and take over if the primary system becomes unavailable.

The AltiWare 5.0 software release is the culmination of a 10-year unbroken engineering cycle of innovation and represents the most significant feature release in the history of the AltiServ product line. Today's businesses are demanding communications solutions that will help them become more customer focused and are looking for complete systems that will 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.

AltiGen's AltiWare version 5.0 offers a better alternative to the traditional approach of constructing a telephone system or contact center by integrating multiple systems. AltiGen phone systems eliminate the need to purchase an entirely separate system for capabilities such as contact center or help desk support, advanced routing, centralized call recording, IVR, or telephony integration with Customer Relationship Management applications. With AltiWare 5.0, these features are now included within every AltiServ system and customers can simply turn on select capabilities and functions as needed. This modular feature licensing allows businesses to add capabilities on a per-feature or per-user basis and offers a significantly reduced up-front investment.

“AltiGen Communications and their innovative AltiWare 5.0 product are a standout indication of why so many businesses and government buyers, service providers, developers, and resellers flock to INTERNET TELEPHONY ® Conference & Expo,” said TMC President and Conference Chairman, Rich Tehrani. “Their innovation and commitment to quality attract serious prospects to their booth. Attendees know they'll find solutions in the AltiGen booth that can help them in their businesses today.”

“By all accounts, INTERNET TELEPHONY ® Conference & EXPO Fall 2004 was one of the most successful VoIP events ever staged. Attendees and exhibitors alike agreed the energy at the show was indicative of the amazing surge of excitement for the IP telephony industry. AltiWare 5.0 perfectly positions AltiGen Communications to meet the needs of businesses and lead a strong resurgence in IP telephone systems sales and other deployments of VoIP solutions,” added Michael Genaro, Vice President of Marketing for TMC.

A full list of the winners will appear in the December 2004 issue of INTERNET TELEPHONY ® magazine. For information on any TMC shows or events, visit www.tmcnet.com . Or call (203) 852-6800 ext. 146.

About AltiGen Communications
AltiGen® Communications, Inc. www.altigen.com (NASDAQ: ATGN) is a leading manufacturer of IP telephony and contact center systems. The company designs, manufactures and markets next generation, IP PBX telephone systems and IP contact centers that use both 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 resellers. AltiGen's AltiServ™ has been recognized for excellence with more than 40 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 Microsoft® Gold Certified ISV.

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

About TMC
Technology Marketing Corporation (TMC) publishes two magazines: Customer Inter@ction Solutions , and Internet Telephony , and the online publications, TMCnet.com, Planet PDA Magazine, WiFi Revolution, Alternative Power and BiometriTech. TMC is also the first publisher to test new products in its own on-site laboratories, TMC Labs. TMC also produces The VoIP Developer Conference, Speech-World, IP Contact Center Summit and The Global Call Center Outsourcing Summit. TMCnet.com publishes more than 25 topical online newsletters. For more information about TMC, visit its Web site at www.tmcnet.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 customer acceptance of our new product releases, including AltiWare ™ ExtensionAnywhere ™ and AltiWare ™ System Redundancy. 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 ended June 30, 2004, and its 10-K for the year ended September 30, 2003. AltiGen assumes no obligation to update the forward-looking information contained in this press release.

AltiGen, AltiServ, AltiWare and ExtensionAnywhere are registered trademarks or trademarks of AltiGen Communications, Inc. All other trademarks are property of their respective owners.