Videoconferencing: VTEL Extends Videoconferencing to the Internet, Acquires Vosaic for Software, Streaming Video/Audio Applications - Company Business and Marketing

EDGE, On & About AT&T, March 15, 1999

VTEL Corporation, Tuesday announced the acquisition of Vosaic, LLC, a cutting-edge Internet video software and technology company.

VTEL acquires the core team, originally from the University of Illinois, who pioneered the first multimedia Web Browser (Video Mosaic), and has refined scalable video delivery technologies to stream video information securely with high Quality of Service (QoS). Vosaic was the first company to stream video through a browser, the first to stream video in an adaptive manner, and the first to offer large-scale webcasts using 100 percent Java without the need for plug-ins or specialized software. VTEL will demonstrate the streaming technology in a live Internet videoconferencing event Wednesday, March 10, at 3:00 p.m. CDT at www.vtel.com.

The acquisition will allow VTEL videoconferencing users to extend the reach of their collaborative applications to broad audiences through the Internet and other Internet Protocol (IP) networks. By combining VTEL's unique PC-based architecture with Vosaic's Java-based streaming applications, remote users will be able to participate in Internet-based videoconferencing sessions with nothing more than a PC with Internet access. Vosaic's unique coding and distribution techniques will provide those users with predictable Quality of Service (QoS) in IP networks that otherwise are not ready for high-speed, real-time applications like videoconferencing.

"Simply put, this is an acquisition of a software technology that extends our customers' videoconferencing reach to an entirely new and global audience -- connecting those customers to the Internet with no special streaming clients or software required," said Jerry S. Benson, Jr., VTEL president and chief executive officer. "Because the Vosaic team brings with it strong and balanced technical capabilities in client/server video and audio delivery, our customers are assured that VTEL will provide the world's most advanced PC-based IP video streaming technology."

Specific elements of the Vosaic technology acquired by VTEL include: * Java-based media players that can run on Windows, Mac and Unix platforms thus providing ubiquitous access to Internet video and audio streaming.

* Java-based server encoding and authoring technology for live as well as stored video multicasting.

* Server-based Reflector technology that provides network administration, security and intelligent routing.

* Quality of Service (QoS) algorithms that implement intelligent routing, improve network load balancing and ultimately deliver Internet video and audio with a higher degree of reliability.

* Network protocols for real-time adaptive multimedia transport.

Efficient, loss-resistant codecs designed specifically for the Internet. VTEL also plans to integrate the Vosaic technology into SmartVideoNet Manager, its unique and highly acclaimed videoconferencing network management product. Vosaic's software is available today, and as VTEL further refines and integrates these technologies, the company expects to introduce systems and software with Vosaic features in the next 90 days.

Stephen Von Rump, VTEL's chief operating officer, added that the acquired technology will accelerate VTEL's entry into new markets and help gain new customers in existing markets. "New products and applications, benefiting from new features like videoconference content recording (for time-shifted communications), video streaming, multicasting and IP-based content collaboration will position VTEL's customers perfectly in the fast-growing market for Internet-based video communications.

"For example, let's talk about the integration of Vosaic's video/audio streaming products with VTEL's videoconferencing systems. This means a sales vice president could conduct a sales management meeting in a videoconference that would allow remote sales people to 'dial-in' through the Internet/Intranet to see and hear the management team and the multimedia presentation," explained Von Rump.

The acquisition was completed by issuing approximately 5 percent of the outstanding shares of VTEL stock with minimal cash and warrant considerations. The Vosaic team will be assigned to VTEL's development division at Sunnyvale, California.

"The acquisition by VTEL ensures that Vosaic technology will reach a global marketplace," said Stuart Johnstone, president, Vosaic, LLC. "Among the benefits of adopting Vosaic technology is that it's standards-compliant -- it works with widely accepted standards and formats for video/audio transmission and compression/decompression. Vosaic technology can be integrated into existing legacy networks and deliver video program content in single or hundreds of streams, using only the bandwidth available at that particular moment."

Vosaic products currently available include Vosaic RadioStation that creates a web radio station without the need for a plug-in; and Vosaic TVStation that streams video to clients without the use of a plug-in and can be used to transmit live events such as conferences, lectures, sporting events, and concerts.