AltiGen IP Telephony Solution Right on the Money for Citizens Bank, N.A.

FREMONT, CA, December 6, 2004 -- AltiGen® Communications, Inc. (NASDAQ: ATGN), a leading manufacturer of VoIP telephone systems and VoIP contact center solutions today announced continuing success with regional banking and financial institutions. Kansas-based Citizens Bank, N.A. has joined an elite roster of financial institutions that have implemented Voice over IP telephony to improve customer-focused communications across multiple locations and to maximize employee productivity. Citizens Bank, N.A implemented an AltiGen AltiServ™ VoIP telephony solution to connect 10 disparate locations and reports a “night and day difference” since shifting from outdated telephone systems to an integrated AltiGen VoIP telephony solution.

Citizens Bank chose AltiGen citing increased efficiency, ease of administration, reliability and cost savings as the foundation decision criteria. For Citizens Bank, calls and call transfers from one location to another use simple 4-digit extension dialing. This makes employee communications more efficient and enables customers needing service to easily reach the most appropriate bank employee, on the first call, in any location, no matter what branch was initially dialed.

“Implementing a true customer service focused communication strategy and VoIP infrastructure has yielded very positive results for our customers. It is impossible to call the wrong branch for your banking needs with Citizens Bank. Our customers can call into any one of our 10 branches and because we are all connected seamlessly, the customer experience is that we are all in single location waiting to serve their wide ranging needs,” said Alan Farris, Citizens Bank president.

Overall demand for Voice over Internet Protocol (VoIP) products - especially with customer centric and multi-site businesses - is on the rise, with AMI Partners reporting that 130,000 U.S. SMBs have already adopted VoIP and another 110,000 plan to do so in the next year. This enthusiasm for VoIP extends to financial services companies who increasingly adopt IP telephony solutions to link multiple branches. VoIP creates a seamless communications system for customers and employees that includes toll-free inter-branch calling.

“Reliability and personalized customer service is critical to ensuring successful customer interactions, and our phone system is on the front line of our communications with customers,” said Paul Newman, Citizens vice president. “The reliability and efficiency of the AltiGen system keeps our customers happy and allows employees to work more productively.”

Citizens Bank has also reduced its dependency on expensive, individual telephone lines while dramatically reducing long distance charges. In addition, the bank has begun enjoying the benefits of built-in system capabilities not originally rated as priority features. For example, Citizens Bank now looks to utilize more advanced call routing and workgroup support capabilities like built-in call recording and monitoring to improve customer service. The bank is also pleased with the advanced capabilities like E-911 support for emergency calls. AltiGen has also enabled businesses like Citizens Bank to manage their entire communication system themselves, from a single location.

“We are experiencing a night and day improvement between the struggles we had with our old traditional telephone systems and ease of managing the new AltiGen system,” adds Shannon Billinger, Citizens network administrator. “I can now administer all sites myself from one office location instead of paying someone to go to each office location for onsite management.”

“In today’s highly competitive business climate, regional banks must improve their ability to connect with customers, ensure employee productivity and drive down the ongoing cost of communications,” said Gilbert Hu, AltiGen Communications President and CEO. “This is why banks and financial services companies, such as Citizens Bank, are increasingly turning to AltiGen’s affordable, scalable IP telephony solution to link multiple branches into a single, efficient communications system. More than 150 financial institutions have implemented AltiGen IP during the last three years, and we are committed to continuing to help financial services companies maintain the highest internal employee and external customer communications.”

About Citizens Bank
Citizens Bank, N.A. is a $240 million independently owned financial institution located throughout Eastern Kansas, with locations in Fort Scott, Iola, Lenexa, Pittsburg, Gas, Kincaid, Overland Park and Mound City. The foundation of the bank’s efforts is a top-down commitment to great service. The bank works with customers to understand needs, establish priorities and design and implement solutions to fit individual lifestyle or business objectives. For more information, visit www.citizensbankna.com.

About AltiGen Communications
AltiGen Communications, Inc. (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 AltiServTM 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 certified Microsoft® Gold ISV.

AltiGen recognizes Network Innovations, a Kansas-based voice and data communications specialist, as the AltiGen Reseller Partner responsible for the Citizens Bank implementation.

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 acceptance of Voice over IP solutions by financial services companies in the small-to-midsize marketplace. 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's10-K for the year ended September 30, 2003 and the recent 10Q for the quarter ending June 30, 2004. AltiGen assumes no obligation to update the forward-looking information contained in this press release.

All product or service names mentioned herein are the trademarks of their respective owners.