Intel Acquires Picazo Communications

Agreement to Accelerate Customer Deployment of CT Media™ based Solutions

SANTA CLARA, Calif., April 10, 2000 - Intel Corporation today announced it has acquired computer telephony solutions provider, Picazo Communications, Inc. in a cash transaction. Specific financial terms of the agreement to acquire privately held Picazo were not disclosed.

The acquisition provides Intel and its Dialogic subsidiary with engineering talent, sales channel expertise, and intellectual property which will be applied to accelerate customer deployment of communications solutions based on CT Media™ server software. Picazo's capabilities will be used to help reduce time to market for existing and emerging telecom equipment manufacturers by strengthening Dialogic's software building block development efforts. Picazo resources will also be used to enhance opportunities for third-party software vendors.

CT Media is a software platform for building advanced telecommunication servers that support communications applications such as IP telephony, network communications, integrated messaging, fax, contact management and other applications from different companies. CT Media server software allows third-party vendors to quickly develop innovative new applications for telecommunications. Intel and its Dialogic subsidiary are committed to making CT Media the centerpiece for enabling next generation converged voice and data Internet solutions. To support this effort, Intel and Dialogic have created the CT Media Value Network made up of a broad range of companies working to deliver the software, hardware, services, resources and other elements necessary to create advanced communications solutions.

"The Picazo team and their software technology will enable Dialogic to help accelerate time to market for companies developing communications systems based on CT Media." said Howard Bubb, president of Dialogic Corporation and vice president of Intel's Communications Products Group. "When these systems are combined with products and services from members of the CT Media Value Network, end users benefit because the resulting solutions are flexible, scaleable and offer the freedom of choice and investment protection that comes with open systems."

San Jose, Calif.-based Picazo currently provides proprietary hardware and software that combines functions such as voice mail, call center and auto attendant capabilities on the same server platform. The company's computer telephony products are primarily sold through resellers to small and medium-size business customers.

Intel and Dialogic will continue to focus on providing standards-based computer telephony building blocks and do not intend to deliver complete private branch exchange (PBX) systems or applications. The companies will not pursue new customer engagements for Picazo PBX products and plan to work with existing Picazo customers and resellers to help with the transition to new suppliers.

Picazo has become a wholly owned subsidiary of Intel, operating within the company's Communications Products Group.

Dialogic, an Intel company, provides the critical building blocks and technical services that enable its customers to develop solutions serving the converging Internet and telecommunications market segments. Dialogic products are used in voice, fax, data, speech recognition and synthesis, call center management and Internet Protocol (IP) telephony applications in both customer premise equipment (CPE) and public network environments. For more information, visit the Dialogic Web site at www.dialogic.com.

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