First State Bank Reduces Telecom Expenses by 60% With AltiGen's Microsoft-Based Unified Communications Platform

FREMONT, CA--(Marketwire - April 2, 2009) - AltiGen Communications, Inc. (NASDAQ: ATGN), a leading provider of VoIP business phone systems and Unified Communications solutions, today announced that its Microsoft-based Unified Communications platform has been deployed by First State Bank, Nebraska. Founded in 1912, First State Bank operates eleven branches throughout Nebraska. As part of a systematic plan to integrate all voice & data networks across their branches, First State Bank evaluated VoIP telephony platforms from several leading manufacturers. In deploying an integrated voice solution, the bank sought to decrease carrier, equipment and administrative costs while providing their managers with tools to measure and monitor customer interactions; all within a seamless, scalable and centrally administered architecture.

"After evaluating multiple telecom solutions and providers, we selected Kansas-based Network Innovations for their expertise in designing and deploying converged communications solutions specifically tailored to the needs of community and regional banks," noted Andrew Cooper, AVP of Information Systems at First State Bank.

"We worked with Andrew and his team to evaluate their existing environment and establish objectives in deploying a converged solution," stated Network Innovations President, Brian Gregory. "We then recommended the AltiGen platform as the ideal solution to achieve First State's primary objectives to:

--  Utilize the bank's private data network to transmit VoIP telephone
    calls
--  Reduce hardware deployed via a centralized solution housed in bank's
    data center
--  Enable the IT staff to administer all moves, adds & changes from a
    single application
--  Provide a software based solution to support flexibility and
    scalability for future growth"
    

Andrew Cooper added, "We could not be more pleased with the performance of our AltiGen system. We immediately reduced our monthly telecom expenses by over 60%. The system is feature rich and easy to administer; delivering increased efficiencies and productivity throughout our organization."

Mike Plumer, Vice President of Sales for AltiGen, noted, "We are pleased to be working with Network Innovations in bringing AltiGen's Microsoft-based unified communications platform to First State Bank. Our software centric architecture and strategic partnership with Fiserv enable AltiGen to deliver comprehensive, yet cost effective VoIP and unified communications solutions to multi-location banks and credit unions across the country."

About AltiGen Communications

AltiGen Communications, Inc. (NASDAQ: ATGN) is a leading provider of 100% Microsoft-based VoIP business phone systems and Unified Communications solutions. Having more than 10,000 customers around the world, AltiGen solutions are designed for high reliability, ease of use, seamless integration to Microsoft infrastructure technologies, and are built on a scalable, open standards platform. AltiGen's worldwide headquarters is in Silicon Valley, California, with international operations based in Shanghai, China. Local sales, service and support are provided by AltiGen's worldwide network of over 300 certified partners. For more information, call 1-888-ALTIGEN or visit the web site at www.altigen.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements regarding the continued market acceptance of our Voice over IP telephone systems and our ability to successfully sell into the financial community. These statements reflect management's current expectation. However, actual results could differ materially as a result of unknown risks and uncertainties, including but not limited to, risks related to AltiGen's limited operating history. For a more detailed description of these and other risks and uncertainties affecting AltiGen's performance, please refer to AltiGen's Annual Report on Form 10-K for the fiscal year ended September 30, 2008 and all subsequent current reports on Form 8-K and quarterly reports on Form 10-Q. All forward-looking statements in this press release are based on information available to AltiGen as of the date hereof and AltiGen assumes no obligation to update these forward-looking statements.