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

Posted on June 10, 2008 
Filed Under Microsoft

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

SAN MATEO, Calif., June 10 /PRNewswire-FirstCall/ — Avistar
Communications Corporation (Nasdaq: AVSR) 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

SOURCE Avistar Communications Corporation

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