PictureTel's 1414c ASP Subsidiary Signs Hosting Agreement With Intel Online Services; Delivers Simple, End-to-End, TV-Quality IP Video and Audio Connection

Business Wire, Oct 18, 2000

Business Editors/Hi-Tech Writers

ANDOVER, Mass.--(BUSINESS WIRE)--Oct. 18, 2000

PictureTel Corporation (NASDAQ:PCTL), a world leader in integrated collaboration technologies, today announced the implementation of an application hosting agreement with Intel Online Services, Inc., the Internet application hosting subsidiary of Intel Corporation.

Under the agreement, 1414c, Inc., PictureTel's Application Service Provider (ASP) subsidiary, is hosting its Web collaboration portal on Intel Online Service's e-business hosting infrastructure using the AppChoice(TM) Managed Hosting Services.

1414c delivers an online conferencing service that allows organizations to schedule and manage IP video, audio, and data calls globally from an easy-to-use web portal.

Under the terms of the contract, 1414c is deploying its carrier-class eVideo 3000 application servers at Intel Online Services' data center in Chantilly, Virginia. This control portal will manage a network of IP multipoint bridges that 1414c is currently deploying around the world.

Under the agreement, 1414c will also deploy its IP multipoint bridges at Intel Online Services data centers worldwide to make high quality, high reliability H.323 conferencing available globally. This service will help subscribers to collaborate over the web, sharing data, voice, video, or any combination depending on connection speed.

The network will support calls from low bandwidth devices using NetMeeting, to high-end devices running near-television quality calls at 384kbps / 30fps.

1414c is working with major backbone and last-mile network providers in Europe and Asia Pacific to provide high quality IP conferencing services in those regions. Users of the service will be supported from 1414c's Network Operating centers located in Andover, Massachusetts, London, and Singapore.

"We're excited that PictureTel's ASP subsidiary is hosting with us," said Mike Aymar, president of Intel Online Services, Inc. "A Web collaboration portal like eVideo 3000 can be beneficial to customers worldwide and we're pleased to be providing the hosting infrastructure, using the AppChoice Managed Hosting Services, to help make this a reality. AppChoice gives PictureTel the flexibility to control their mission-critical applications, while enjoying the benefits of a fully managed, outsourced hosting solution."

"The global market for high-quality IP based H.323 video audio and data conferencing is poised for near-term explosive growth," says Bob Byrnes, president and chief executive officer of 1414c. "To date, users have been scared away from IP videoconferencing by complexity of managing the network connections, lack of bandwidth, and low-quality service. 1414c is in the business of connecting people simply. We reviewed available infrastructure providers, assessing their total hosting and connectivity value proposition and determined Intel Online Services provides superior reliability, capacity, as well as critical low-latency end-to-end connectivity for call traffic. These characteristics will allow 1414c to deliver high quality rich media services globally to our customers and to seamlessly scale services to keep pace with the application demand hockeystick."

About PictureTel

PictureTel Corporation (Nasdaq:PCTL) is the world leader in developing, manufacturing, and marketing a full range of visual- and audio-collaboration and streaming-video solutions. The company's systems meet customers' collaboration needs from the desktop to the boardroom. PictureTel also markets network conferencing servers and a comprehensive portfolio of enterprise-wide services.

Additional PictureTel information is available at www.picturetel.com. PictureTel collaboration products and services eliminate the barrier of distance, enabling people to be Anywhere Now(TM).

About 1414c

Headquartered in Andover, Massachusetts, 1414c is an ASP focused on connecting people simply. A majority owned subsidiary of PictureTel Corporation, 1414c takes full advantage of the IP revolution, delivering access to a broad range of IP-based interactive communication solutions.

These solutions include live multi-point videoconferencing, video-streaming and broadcasts, data-sharing, and voice-over-IP. The 1414c name reflects the organization's core value proposition, redefining conventional computing models - silicon melts at 1414 degrees centigrade. 1414c enables ISPs, NSPs, and other ASPs to provide these services.

For more information, visit www.picturetel.com/1414c.> This release includes projections and other forward-looking statements about the company's revenues, earnings, and other measures of economic performance. Actual results could differ materially from forecasts due to many factors such as, for example, competitive pressures, changes in technology and the difficulty of forecasting in overseas markets and indirect channels.

Additional information concerning risks that could cause actual results to differ is contained in the company's annual report on Form 10K as filed with the SEC. The company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.