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Tuesday September 28, 8:08 am Eastern Time

Company Press Release

8x8 Introduces iPBX Evaluation System

IntraSwitch iPBX Evaluation System Lets Telephone Equipment Providers Test and Develop IP Telephony Systems

ATLANTA--(BUSINESS WIRE)--Sept. 28, 1999--8x8, Inc. (Nasdaq:EGHT ) -- a leading supplier of multimedia communication technology and systems -- today introduced the IntraSwitch(TM) iPBX Evaluation System, a full-function Internet protocol-based private branch exchange (PBX), based on 8x8's IntraSwitch iPBX Server Software.

The system is designed to allow telephone equipment providers to develop iPBX products and services using 8x8's state-of-the-art IP telephony technology. 8x8 is demonstrating the Evaluation System at the Voice on the Net (VON) conference in Atlanta.

The Evaluation System consists of 8x8's iPBX software running under the Solaris operating system on a Pentium III Processor to provide standard PBX functionality using packet-switched technology. The Evaluation System includes three 8x8 Symphony(TM) Media Hubs to connect standard analog telephones to an IP network and incorporates an eight-line gateway to connect the system to the public switched telephone network (PSTN).

Today's PBX systems are proprietary implementations of decades-old circuit-switched technology. Packet-switched voice technology offers telephony equipment manufacturers the opportunity to significantly lower the price and installation costs of their PBX offerings while adding features that lower telecommunications costs and increase productivity for their customers. For example, IP technology will allow companies to easily integrate their telephone system with their MIS system, making it possible for even small companies to implement sophisticated call centers to improve customer service.

In addition, IP telephone technology allows phone systems to be integrated with Web technology, which will make it possible for users to configure and manage their own telephone service for the first time. This integration will also provide a broad range of new features, including unified messaging, find me/follow me and seamless telecommuting -- all of which will be accessible from anywhere via the Web. For these reasons, the PBI Media -- InfoTech predicts that the crossover from circuit-switched to IP telephony over LANs will spawn a $1.9 billion dollar industry by the year 2004 with an average annual growth rate of 138 percent over the next five years.

``Our IntraSwitch iPBX Evaluation System provides telephone equipment providers with a technology library that includes iPBX software, media hub designs, semiconductors and firmware; arguably the most complete IP telephony portfolio available from any one company. This library will make it possible for an OEM (original equipment manufacturer) to get a twenty-first century PBX system to market quickly,'' said Dominique Pitteloud, 8x8's vice president of marketing. ``To make it easy to customize, IntraSwitch provides completely public interfaces. For computer telephony integration, implementing JTAPI (Java Telephony Application Program Interface) and OAM&P (Operations, Administration, Maintenance and Provisioning) makes the system the perfect platform on which to develop and test new PBX features such as unified messaging, find me/follow me and customer service support. And, because it incorporates a device driver architecture, developers can quickly integrate support for any type of terminal or gateway, either by using the provided SIP (Session Initiation Protocol) and MGCP (Media Gateway Control Protocol) drivers or developing their own.

``Eighty-six million PBX lines, worth about $100 billion, will be up for grabs over the next five years,'' continued Pitteloud. ``PBX makers that fail to quickly make the transition to IP technology may not be able to compete. Our IntraSwitch Evaluation System can serve as a short cut for telephony OEMs into the world of advanced telephony.''

The IntraSwitch iPBX Evaluation System consists of a rack-mount industrial chassis that contains a Pentium III-based CPU board and an eight-line Natural Microsystems PSTN gateway card, which provides four inbound trunks and four outbound trunks. The inbound trunks support direct inward dialing (DID) and the outbound trunks are configured for loop start. Users connect standard analog telephones to Symphony Media Hubs, each of which supports four lines. The Media Hubs are, in turn, connected to the CPU via a standard 10-baseT Ethernet network.

The IntraSwitch iPBX Server Software provides standard PBX features, including call routing, call forwarding, call transfer, call waiting, call hold, caller ID, etc., managed by a computer-based call control application or the telephone keypad. Dubbed ePhone, the call control application -- which communicates with the iPBX using JTAPI -- is designed to run on a computer in conjunction with a specific extension and provides a graphical user interface for the telephone. ePhone allows users to see caller ID information on inbound calls, transfer calls to other terminals, place calls on hold, configure call forwarding, place a call and so on, all with point and click simplicity. In addition, these features are accessible through the telephone keypad using the standard Centrex hook-flash and dial method.

``SoftSwitch applications such as the IntraSwitch iPBX are central to the delivery of the new services and features that will drive the acceptance of IP telephony,'' said Jeff Pulver, publisher of the Pulver Report, a newsletter that follows the VoIP market (http://pulver.com/reports). ``By making such a powerful product available to equipment makers as a development tool, 8x8 is accelerating their ability to deliver on the promise of voice over IP.''

The IntraSwitch iPBX Evaluation System will be available in October 1999. The system includes the IntraSwitch iPBX software, the ePhone call control application, the CPU and PSTN gateway mounted in an industrial chassis and three Symphony Media Hubs. Up to three additional Hubs can be added to the system. Source code for the ePhone application is also included.

About 8x8

8x8, Inc. is a leading manufacturer of digital telecommunications technology, including IP telephony gateways, software and semiconductors. By leveraging its technology expertise in audio and video compression and communication protocols, the company is providing systems and software to network and telecommunications equipment providers, cable television system operators and local exchange carriers. For more information, visit 8x8's Web site at http://www.8x8.com.

This press release contains forward-looking statements. 8x8's actual results may differ materially from the results discussed, implied or forecasted in the forward-looking statements due to factors including in particular a history of losses, uncertainty of future profitability, potential fluctuation in future operating results, dependence on key customers, the uncertainty of market acceptance of IP telephony, the limits of existing IP telephony technology, rapid technological change, compliance with industry standards, dependence on key personnel, dependence on new product introduction, current and potential competition and the need for additional capital. Further information on these and other factors that could affect the actual results of 8x8 are included in 8x8's Report on Form 10-Q for the quarter ended June 30, 1999, which is on file with the Securities and Exchange Commission. 8x8 assumes no obligation to revise or update any forward-looking statements contained in this press release.

Editors: The 8x8 logo is a registered trademark and IntraSwitch and Symphony are trademarks of 8x8, Inc. 


Contact:
     8x8, Inc.
     Scott St. Clair, 408/727-1885
     scottsc@8x8.com
     or
     TSI Communications
     Scot Howard, 650/635-0200 ext. 219
     showard@tsicomm.com



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