FREMONT, CA--Oct 30, 2001-- AltiGen Communications (NASDAQ: ATGN), the market leader in IP-PBX phone systems for small and mid-sized business, today announced that a Gartner Dataquest report* has ranked AltiGen first for new IP-PBX lines shipped in the U.S. in 2000. The report confirmed that with 125,122 lines shipped, AltiGen Communications was the leading manufacturer of new IP-PBX lines shipped in America. "By having a superior phone system that provides cost savings, increased efficiency and new methods of staying in touch with customers, the small and mid-sized businesses using AltiGen systems are realizing significant benefits from their telephone systems. These companies are transforming the way businesses use the phone," said Richard De Soto, Vice President of Sales & Marketing at AltiGen.

"The system saved our company over $60,000 the first year," said one AltiGen AltiServ user quoted in the report.

AltiGen's AltiServ 4.0 Advanced enables businesses to seamlessly integrate their telephone system with the Internet, producing features such as the ability to transparently route calls over the Internet to call center agents or salespeople working remotely. Similarly, businesses can easily install "Click-to-talk" buttons on the Web, making it simple for customers or prospects to reach company representatives toll-free from any Web-enabled multimedia computer in the world.

"I like the ease with which AltiReach is Web-enabled; I like how easy it is to customize," commented one user on the ability to securely conduct most system administration tasks, such as after-hours call routing, by accessing the AltiServ system through the Internet.

"Clearly businesses today are looking for the history of dependability, cost reduction and increased workplace efficiency that AltiGen offers," said Gilbert Hu, president and CEO of AltiGen.

AltiGen Communications, the pioneer of IP-PBX capabilities, currently has installations of its computer telephony solution in such companies as Hitachi, Century 21, Gibson Guitars, Acer Communications and Multimedia, Google, Wildbrain Animation, Hurricane Electric and other customer service-focused companies. AltiGen's system can be installed for a fraction of the cost of a traditional PBX system, and can be maintained and upgraded by a company's in-house IT staff, dramatically cutting costs for the small to mid-sized business. An installed system delivers an unsurpassed range of capabilities, including voice-over-IP call routing, automated call following, e-mail, voicemail, fax and Web integration, as well as robust call center features. Recently, AltiGen announced product interoperability with QuickNet's PCMCIA softphones and Siemens IP phones, enabling extensions of the telephone system to exist anywhere on the Internet. The AltiGen PBX server also easily functions with analogue telephones or legacy digital telephone handsets.

*Source: Gartner Dataquest "U.S. PBX/KTS and PCX Market Share and Forecast, 2001," May, 2001.

About AltiGen Communications

AltiGen Communications, Inc. (NASDAQ: ATGN), is a leader in the IP-PBX and the server-based telecommunications system market. The company designs, manufactures and markets next generation, IP-PBX telephone systems that use both the Internet and the public telephone network to enable an array of applications that take advantage of the convergence of voice and data communications. AltiGen Communications products are available from authorized resellers. AltiGen's AltiServ(R) has been recognized for excellence with nearly 30 industry awards from 1996 to today's CT Labs Best of Breed award in January, 2001.For more information, call 1-888-ALTIGEN or visit the Web site at www.altigen.com.

About Gartner, Inc.

Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenue of $859 million. For more information, visit www.gartner.com.

Gartner Dataquest is the recognized leader in providing the high technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry.

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: AltiGen's leveraging of its leadership in multimedia (including voice) over Internet protocol solutions to rapidly expand into new product areas; AltiGen's expectation to continue to grow the number of phone lines shipped, including IP type lines: its continued sales growth success in the small business marketplace to more traditional enterprises; and AltiGen's ability to continue to offer a cost effective and highly featured solution against traditional PBX systems suppliers. These statements reflect management's current expectations. 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 the Company's recent 10-K for the year ended September 30, 2000 and most recent 10-Q for the period ended June 30, 2001 filed with the SEC. AltiGen assumes no obligation to update the forward-looking information contained in this press release.

----------------------------------
Contact:

Derek Kober
Neale-May & Partners
650-328-5555 X126
dkober@nealemay.com

Sarah Miller
Neale-May & Partners
650-328-5555 X 272
smiller@nealemay.com