LONDON and SAN MATEO, Calif., Dec. 1 /PRNewswire-FirstCall/ -- Avistar Communications Corporation (Nasdaq: AVSR), a leading provider of unified visual communications solutions, and City Information Services Limited (CityIS Ltd.), a global visual communications company, have considerably deepened their strategic partnership in Europe and have expanded into Asia, Avistar announced today. As a result, CityIS becomes Avistar's first global platinum level partner, which includes exclusive distribution of Avistar C3 solutions in Singapore, and will market the product set more broadly throughout Asia. The agreement also calls for CityIS to transition into one of Avistar's largest accounts, a global financial services leader, and service and support that institution. In addition to this, CityIS has committed to distributing a multiple of several thousand Avistar C3 desktop conferencing seats through its significant global and multi-industry pipeline over the term of the agreement.

In making the announcement, Darren Innes, General Manager, Worldwide Sales, Avistar, said, "On the heels of our largely successful technology licensing agreements with IBM and LifeSize, Avistar's 2008 go-to-market strategy of partnering with leading resellers and distributors has proven itself to be a win-win. Avistar C3 is rapidly gaining distribution around the globe, as evidenced by this latest and significant agreement with CityIS in Singapore and elsewhere. Plus, partners have seen the huge value of adding C3 to their portfolio and/or embedding our patent protected technology in their own solutions. With more than 100,000 seats already committed worldwide over the next few years, plus thousands of seats that CityIS has committed to deploy through its global network, we are showing that the distribution of desktop videoconferencing solutions through companies such as CityIS is a success. We are delighted to have such a partner of the reputation and success as City IS, and are especially pleased with this global commitment."

John N. Thompson, Founder and Chairman of CityIS, said, "We have been extremely happy with our successful partnership with Avistar since we started working together this past July -- both in the power and value of their portfolio as well as their strong focus and commitment to partnership and joint success. We are Avistar's first global platinum partner, and we are now established as the exclusive distributor of Avistar in Singapore. Asia is such a promising market for videoconferencing, due to the geographical spread of its companies and its many cultures and languages. We see working with Avistar as a way to open new markets for us, and we look forward to ongoing success."

About CityIS Ltd.

CityIS is a global visual communications company, assisting many Fortune 500 organizations realize their ROI and environmental goals through video communications. Its technical and commercial consultancy capabilities ensure that clients optimize videoconferencing to transform the way they communicate. CityIS underpins its consultation process with an unrivalled breadth of global services to ensure total project ownership through the delivery, management and measurement stages, to guarantee a fully managed and successful project lifecycle. CityIS' unrivalled global coverage spans 92 countries worldwide. Corporate offices are located throughout EMEA, USA and APAC. For more information, visit http://www.cityis.com.

About Avistar Communications Corporation

Avistar (Nasdaq: AVSR) 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 more than 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 provides users instant messaging-style ability to initiate video communications across and outside the enterprise. Patent protected dynamic bandwidth management enables thousands of users to access desktop videoconferencing, 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 commitments of more than 100,000 desktop seats to be deployed in over 40 countries in the coming years. 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 93 patents for inventions in video and network technology and licenses IP to videoconferencing, rich-media services, public networking and related industries. Current licensees include IBM Corporation, Sony Corporation, Sony Computer Entertainment Inc. (SCEI), Polycom, Inc., Tandberg ASA, Radvision Ltd., LifeSize Communications, Inc. and Emblaze-VCON.

For more information, visit http://www.avistar.com.

Forward-Looking Statements

Statements made in this news release that are not purely historical, including but not limited to statements regarding the commitment of 100,000 seats to be distributed worldwide over the next few years and the additional seats that CityIS will deploy over the term of the agreement with Avistar, 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 competition in the unified communications industry and the emergence of new or competing technologies. As a result of these and other factors, Avistar expects to experience significant fluctuations in revenue and operating results, and there can be no assurance that Avistar will become or remain profitable in the future, or that its 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.

SOURCE Avistar Communications Corporation