Fremont, CA – Nov. 14, 2007 – AltiGen Communications, Inc. (Nasdaq: ATGN), a leading provider of VoIP business phone systems and Unified Communications solutions for small-to-medium businesses (SMBs), including companies with multiple distributed locations, branch offices and call centers, reported its financial results for the fiscal 2007 fourth quarter and year ended September 30, 2007.

Gilbert Hu, chairman and CEO, stated, "Our record fourth quarter revenue reflects our efforts to accelerate growth and build shareholder value. During 2007, we strengthened management, expanded the sales model, enhanced our products and began executing on our new strategic business plan. As a result, in the fourth quarter, we increased both revenue by 15 percent, compared to the fourth quarter of 2006, and gross profit to 56 percent of revenue, versus 55 percent last year. We are very excited about the upward trend in revenue this quarter, and we believe this solid momentum will continue.”

Jeremiah Fleming, AltiGen’s president and COO, said, "Over the past six months, we placed a significant focus on amplifying our distribution channel. During this time, we doubled our sales organization by adding channel sales, strategic account and telemarketing personnel. We continue to integrate quality value added resellers (VARs) into our team and currently have well over 200 in North America. We recently reached an agreement with a leading North American master distributor of business telephone and computer telephony products, bringing exposure to thousands of resellers. We also released the new 5.1 version of our award-winning IP-PBX, which enables us to support lower cost IP trunking and standard third party endpoints and has resulted in greater scalability. The combination of all these factors with our new automated multi-site enterprise communications manager has positioned us well to capture the growing demand for VoIP and Unified Communications among small, medium and multi-site businesses.”

"In fact, the market’s increasing emphasis on Unified Communications bodes particularly well for AltiGen, as we offer solutions that unify the various aspects of business communications – such as voice, email, fax and messaging – across one or more locations,” Fleming added. "Our single server architecture provides an integrated VoIP business phone system and Unified Communications platform that immediately delivers increased productivity and cost savings. Simultaneously, our software-based system enables companies to implement the features they need now, with the security that they can easily add more features, users and locations as future growth requires.”

Financial Results
Revenue for the fiscal 2007 fourth quarter was $5.2 million, compared to $4.5 million a year ago and $4.2 million in the previous quarter. Operating expenses, including the increased investment in sales and marketing, totaled $3.2 million, compared to $2.4 million in the year ago period. Net loss for the fourth quarter of fiscal 2007 was $144,000, or $0.01 per share, including stock based compensation expense of $186,000. This compares to net income of $136,000, or $0.01 per diluted share, including stock based compensation expense of $174,000 in the same period last year, and a net loss of $526,000, or $0.03 per share, including stock based compensation expense of $161,000 in the previous quarter.

Phil McDermott, AltiGen’s CFO, said, "Although new sales programs take approximately six months to begin to impact revenue, we already began to experience results in the fourth quarter. Revenue from IP telephone sales increased 39 percent and produced a positive impact on our margins. Additionally, sales of our MAX1000 IPPBX continue to gain traction, increasing seven percent sequentially and 20 percent over last year’s fourth quarter. Also, we drove revenue contribution from larger systems to 19 percent of total systems shipped versus 14 percent last quarter, a 35 percent increase. While revenue was flat for the year, we are optimistic the growth we achieved in the fourth quarter will continue."

Revenue was $17.9 million for both fiscal 2007 and 2006. Operating expenses, including the increased investment in sales and marketing, totaled $11.2 million, compared to $10.2 million in fiscal 2006. Net loss for fiscal 2007 was $936,000 or $0.06 per share, including stock-based compensation expense of $603,000. This compares to a 2006 net loss of $12,000, or $0.00 per share, including stock-based compensation expense of $801,000.

Stock Repurchase Program
The board authorized a repurchase program of up to $2.0 million of shares of AltiGen’s common stock. Pursuant to the plan, the company will enter into a trading plan with a securities broker and may continue through November 14, 2008.

Earnings Conference Call
AltiGen will conduct a conference call with investment professionals at 2:00 PM Pacific Time (5:00 PM Eastern Time) today, November 14, 2007 to discuss AltiGen’s results of operations for the fourth quarter. Dial (800) 862-9098 (domestic) or (785) 424-1051 (international) to listen to the call. The conference call ID is "7AltiGen.” A telephonic replay will be available approximately one hour after the call through November 16, 2007. To access the replay, dial (402) 220-4948. A live Webcast will be made available at www.altigen.com and will also be archived for 90 days at this link following the call.

About AltiGen Communications
AltiGen Communications, Inc. (NASDAQ: ATGN) is a leading provider of VoIP business phone systems and Microsoft-based Unified Communications solutions for small-to-medium businesses (SMBs), including companies with multiple distributed locations, branch offices and call centers. AltiGen's scalable, integrated, and easy to manage all-in-one unified communications solutions enable an array of applications like standards based SIP VoIP phones and servers, unified messaging, voicemail, call recording, conferencing, call activity reporting, and mobility solutions that leverage both the Internet and the public telephone network to take advantage of the convergence of voice and data communications. AltiGen’s systems are designed with an open architecture and are built on an industry standard platform. This adherence to widelyused standards allows our products to integrate with and leverage our partner’s and customer’s existing technology investment. 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, our continued growth of the MAX 1000 VoIP phone system, our ability to continue this upward revenue trend, our successful execution of adding new quality value added resellers, including a successful partnership with a leading North American master distributor, and the successful introduction of our new automated multi-site enterprise communications manager. 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 AltiGen's Annual Report on Form 10-K for the fiscal year ended September 30, 2006 and all subsequent current reports on Form 8-K and quarterly reports on Form 10-Q. All forward-looking statements in this press release are based on information available to AltiGen as of the date hereof and AltiGen assumes no obligation to update these forward-looking statements.