Intel To Acquire Voice Technologies Group

Acquisition Aimed at Enhancing Dialogic PBX Capabilities

SANTA CLARA, Calif., Feb. 24, 2000 - Intel Corporation today announced it has entered into a definitive agreement to acquire privately held Voice Technologies Group, Inc. (VTG) of Buffalo, N.Y. in a cash transaction. Specific financial terms of the agreement were not disclosed.

The acquisition provides Intel and its Dialogic subsidiary with leading edge capabilities and features to enable most leading private branch exchange (PBX) systems sold worldwide to work with Dialogic's computer telephony server systems and IP gateways (equipment used to link to the Internet). In addition, VTG will help expand Dialogic's current portfolio of PBX products. A PBX is a telephone switch used to route phone calls within an office environment.

The VTG acquisition will further Dialogic's objective of helping to enable the integration of sophisticated applications -- such as IP telephony (using Internet technology for telephone calls) unified messaging (combining functions like voice, fax and e-mail on the same local area network or on the Internet), speech-based auto attendant and call center applications -- with PBX systems. Intel and Dialogic will gain access to VTG product lines, intellectual property, technology, expert engineers, and facilities in order to enable new products that accelerate the convergence of PBX and Internet technologies.

"The acquisition of VTG helps Dialogic and Intel significantly add to the computer telephony and Internet building blocks we're able to provide to our customers," said Howard Bubb, president, Dialogic Corporation and vice president of Intel's Communication Products Group. "With the outstanding engineering talent and technology that VTG provides, we're working to link the Internet and conventional PBXs to Dialogic's Internet and computer telephony products. We look forward to working with the VTG team to achieve this goal."

The acquisition of VTG also allows Intel's Dialogic subsidiary to significantly expand the number of engineers it has for developing standard and customized PBX products. The agreement also provides Dialogic with a state-of-the-art R&D facility with access to leading PBX switch and phone technology. At VTG's Buffalo site, the company will continue to manage the development and support of new and existing PBX products.

The acquisition is subject to regulatory approval and certain closing conditions. It is expected to become final in the second quarter of this year.

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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