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AltiGen Communications Welcomes Telecom Powerhouse Graybar

[November 12, 2003]

AltiGen Communications Welcomes Telecom Powerhouse Graybar

AltiGen Communications Welcomes Telecom Powerhouse Graybar as a Distribution Partner

Graybar to Distribute AltiGen’s Offering of IP Telephone Systems and Contact Center Solutions

Fremont, CA, November 10, 2003 – AltiGen® Communications, Inc. (NASDAQ: ATGN), a leading manufacturer of next generation IP-PBX telephone systems and IP contact centers for small to midsize businesses, announced today an agreement with Graybar, North America’s largest distributor of telecommunications, networking and electrical products, to nationally distribute the AltiGen family of IP PBX telephone systems and contact center solutions to resellers servicing the small to midsized business market.

Graybar, chosen for its role as a vital link in today’s supply chain and strength in the telecommunications industry, will provide nationwide distribution services for AltiGen’s network of authorized resellers located in the United States and Canada. Graybar’s leading-edge information technology and logistic capabilities, value-added services and integrated solutions make it a natural fit for AltiGen’s reseller channel of converged communications solution providers.

“Our agreement with AltiGen Communications, a leader in IP PBXs and contact center solutions, is further evidence of Graybar’s commitment to working to our customers’ advantage by expanding our IP telephony and call center solution portfolio for the telecommunications industry,” said Ed Ludtke, National Product Manager for Graybar. “Importantly, we also offer technical resources to support customers’ needs in IP telephony, further raising the bar on performance and value for our customers.”

“AltiGen is focused on partnering with distributor organizations that specialize in the telecommunications industry and provide value added support for our channel of resellers. Through excellent product support, superior service, and on-time delivery Graybar will contribute to the overall success of AltiGen and our resellers,” says Phil McDermott, CFO of AltiGen Communications, Inc.

“The partnership between AltiGen and Graybar validates AltiGen’s commitment to their resellers by partnering with one of the best distribution organizations for voice solutions in the industry,” says John Graven, President of Computer Telephony Concepts of Ohio, a long time AltiGen Authorized Reseller. “I have been in the telephony industry a long time and I know that Graybar understands the needs of the telephony reseller community. They have a complete stock of the items that resellers like me need, and provide the expediting required to allow me to deliver timely and accurate solutions to my own customers. It is a partnership made in heaven.”

About Graybar
Graybar, a Fortune 500 corporation and one of the largest employee-owned companies in North America, is a leader in the distribution of high quality electrical, telecommunications and networking products, and an expert provider of related supply chain management and logistics services. Through its network of 250 North American distribution facilities, it stocks and sells products from thousands of manufacturers, serving as the vital link to hundreds of thousands of customers. For more information, visit www.graybar.com.

About AltiGen Communications
AltiGen Communications, Inc. (NASDAQ: ATGN) is a leading manufacturer of IP Telephony and Contact Center systems. The company designs, manufactures and markets next generation, IP-PBX telephone systems and IP contact centers 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 has been recognized for excellence with more than 35 industry awards since 1996. Deloitte Touche has named AltiGen, as the 111th fastest growing company in the U.S. AltiGen Communications remains the leading manufacturer of delivered next-generation business telephony for the SMB market and is a certified Microsoft Gold ISV.

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 a successful relationship with Graybar as a distributor of its IP telephony and call center solutions. 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 the Company's 10-K for the year ended September 30, 2002, and the Company's recent 10-Q for the period ending June 30, 2003. AltiGen assumes no obligation to update the forward-looking information contained in this press release.

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