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Microsoft Patent Challenge Update: Majority of Microsoft Re-Examination Challenges of Avistar's U.S. Patents Rejected by U.S. Patent Office

Microsoft Patent Challenge Update: Majority of Microsoft Re-Examination Challenges of Avistar's U.S. Patents Rejected by U.S. Pa

SAN MATEO, Calif., June 10 /PRNewswire-FirstCall/ -- Avistar Communications Corporation announced today that the U.S. Patent Office has now completed its review of Microsoft's requests for patent re-examination of the complete Avistar U.S. patent portfolio. The USPTO has now rejected 19 re-exam applications and has agreed to re-examine, either in part or fully, 10 existing patents.

Simon Moss, CEO of Avistar, stated, "This action by the U.S. Patent Office reaffirms our belief that the Avistar patent portfolio is one of the industry's strongest collection of video and rich media collaboration technology patents, and critical to protecting the innovations and intellectual property of Avistar. We are delighted that the U.S. Patent Office has decided that there was no basis for the re-exam requests on 19 of our patents, and thereby confirmed their validity relative to this challenge. We continue to believe that the remaining 10 patents will be validated, and even strengthened, through the re-examination process. I am particularly delighted for the team at Avistar. This team has spent an enormous amount of time, creativity and skill to solve the fundamental challenges that will face the Unified Communications market, and then had the foresight to protect those solutions in our patent portfolio. We remain a true technology innovator and this set of decisions by the USPTO reflects that thoroughbred status."

Mr. Moss continued, "We believe the USPTO's decisions in response to Microsoft's requests are material and accordingly, we are issuing this release to keep our stockholders informed. As we mentioned in our June 2nd press release relating to this issue, we continue to remain focused on our business operations and have no further comment at this time with regards to the impact of these recent USPTO actions on our patent discussions."

Forward Looking Statements

Statements made in this news release that are not purely historical, including but not limited to statements regarding Avistar's ability to overcome the remaining re-examination requests, and the impact and end result of the re-examination process on the patents that are re-examined by the USPTO, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. Such statements are subject to risks and uncertainties that could cause actual results to differ materially, including such factors, among others, as the time and expense to Avistar of responding to the re-examination requests and defending its patent portfolio, difficulties associated with enforcing or licensing Avistar's patent portfolio during the re-examination process, and the risk that Avistar's existing and pending patents could be revoked by the USPTO. As a result of these and other factors, Avistar expects to experience significant fluctuations in its licensing activities and operating results, and there can be no assurance that Avistar's future results will meet expectations. These and other risk factors are discussed in Avistar's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission from time to time. Avistar disclaims any intent or obligation to update these forward-looking statements.

About Avistar Communications Corporation

Avistar creates technology that provides the missing critical element in unified communications: bringing people in organizations face-to-face, through enhanced communications, for true collaboration anytime, anyplace. Its latest product, Avistar C3, draws on over a decade of market experience to deliver a single-click desktop videoconferencing and collaboration experience that moves business communications into a new era. Available as a stand-alone solution, or integrated with existing unified communications software from other vendors, Avistar C3 users gain instant messaging-style ability to initiate video communications across and outside the enterprise. Patented bandwidth management enables thousands of users to access desktop videoconferencing, Voice over IP (VoIP) and streaming media, without requiring substantial new network investment or impairing network performance.

Avistar's desktop videoconferencing and collaboration installations are among the world's largest, including more than 18,000 seats sold in more than 40 countries. Clients report as much as a 20 percent reduction in travel expense and carbon emissions, increases in productivity, and immeasurably improved relationship building within their organizations, as well as with suppliers and customers. Avistar holds a portfolio of 80 patents for inventions in video and network technology and licenses IP to videoconferencing, rich-media services, public networking and related industries. Current licensees include Sony Corporation, Sony Computer Entertainment Inc. (SCEI), Polycom, Inc., Tandberg ASA, Radvision Ltd. and Emblaze-VCON. For more information, visit http://www.avistar.com/

Avistar Communications Corporation

CONTACT: Lisa Farley, Avistar Communications, Inc., +1-212-949-1137,
[email protected]

Web site: http://www.avistar.com/

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