GTE and 8x8 team to promote settop video phones; GTE to offer 20 minutes of free long distance every month to buyers of 8x8's ViaTV Phone

Business Wire, May 21, 1997

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 21, 1997--GTE and 8x8 Inc. today announced that the two companies will work together to promote video telephony in the consumer and business markets.

Beginning in June, GTE will begin selling 8x8's ViaTV Phone in select GTE Phone Mart stores. The first affordable video phone, ViaTV combines with a TV and a touch-tone telephone to provide a video phone. Video phone calls are made via standard telephone lines and cost no more than any local or long distance call.

To further promote video phone use, GTE is offering the Video Phone Long Distance Plan. This special long distance plan offers 20 minutes of free calling per month to subscribers with ViaTV Phones. GTE long distance is available in all 50 states, which makes this offer available to all ViaTV owners, including those that purchase their ViaTVs at retail outlets other than GTE Phone Marts. The offer will be included in ViaTV retail packaging and promoted to GTE's existing local, long distance and wireless customer base.

"As one of the few major telecommunications companies that provides local, cellular and long distance services, GTE is a great partner to promote video phones nationwide," said Joe Parkinson, 8x8's chairman and CEO. "We are also seeing strong interest in ViaTV from families that have relatives in other countries. GTE's international operations in Mexico, Canada and South America will help us to extend the capabilities offered by ViaTV to families in those countries."

"The ViaTV Phone is the first video phone product we have seen that offers the video quality and ease of use that consumers want at a price they can afford," said Sumpter Logan, GTE general manager -- retail operations. "Because it operates over regular telephone lines, it has widespread applications in business and will greatly enhance personal communications among friends and family members." There are 130 Phone Mart stores located in 23 of the 28 states where GTE provides local telephone service.

About ViaTV Phone

ViaTV Phone is the first standalone video phone product that is affordable, easy to use and provides telephone-quality video. Priced at about $500 per unit, a pair of ViaTVs represents an investment of only $1000. ViaTV Phone uses a standard telephone line, which will allow virtually anyone in the United States to take advantage of the expanded communications capability that visual communication provides.

ViaTV Phone uses a standard television set and touch-tone telephone to provide a complete video phone solution. Since ViaTV utilizes a standard telephone line, local or long distance video phone calls cost no more than regular audio calls and no monthly service or subscription fees are required. ViaTV Phone is compatible with the H.324 standard for POTS video telephony, which allows ViaTV Phone to interoperate with other H.324 compatible video phones such as Intel's Video Phone with ProShare technology.

About 8x8

Founded in 1987, 8x8 Inc. develops affordable, easy to use video phone products based on their high-performance video processing chips and software for visual communications. 8x8 is a leader in H.320 ISDN and H.323 LAN based video conferencing technology and H.324 POTS video phone technology. A privately held company, 8x8 is headquartered in Santa Clara, Calif. with 100 employees worldwide. A European office is located in London. The company's web site can be found at http:\\www.8x8.com .

About GTE

With revenues of more than $21 billion in 1996, GTE is one of the largest publicly held telecommunications companies in the world. In the United States, GTE offers local and wireless service in 29 states and long-distance service in all 50 states. GTE was the first among its peers to offer "one-stop shopping" for local, long-distance and Internet access services. Outside the United States, where GTE has operated for more than 40 years, the company serves over 6.5 million customers.

GTE is also a leader in government and defense communications systems and equipment, directories and telecommunications-based information services, and aircraft-passenger telecommunications. -0-

Note to Editors: 8x8, the 8x8 logo and ViaTV are trademarks of 8x8 Inc. Video Phone Long Distance Plan is a service mark of GTE Long Distance. All other trademarks are the property of their respective owners.

CONTACT: 8x8 Inc.

Scott St. Clair, 408/727-1885

scottsc@8x8.com

or

Technology Solutions Inc.

Cindy Cooper, 408/280-6000 ext. 213

ccooper@ca.tsipr.com

or

GTE

Brian Blevins, 972/718-6920

brian.blevins@telops.gte.com