Press Release

FaceTime Continues Record Business Growth With 27% Revenue Increase in Q2 2003

Instant Messaging Management Solutions Leader Marks Continued Momentum with New Customers in Technology, Healthcare, Communications, Energy, Insurance, Travel, and Financial Services Markets

FOSTER CITY, Calif.-July 29, 2003 -- Furthering its leadership position as the premier provider of security, management and control solutions for instant messaging and other forms of real-time communications in the enterprise, FaceTime Communications today announced continued sales momentum in the rapidly growing instant messaging market with record revenue results in the second quarter 2003.

Second Quarter 2003 Results Summary:

27% quarter over quarter total revenue increase resulting in a 56% Compound Annual Growth Rate for fiscal year 2003
44% of total revenues resulted from customer adoption of FaceTime solutions for Enterprise IT infrastructure and Customer Service market segments
56% of total revenues from Regulatory Compliance markets
30% increase in cumulative licensed customers
40% increase in total cumulative user seats

FaceTime's momentous second quarter resulted in part from the company's expanded global reach, with installations of the company's software now spanning multiple geographies, including Asia Pacific, Japan, Germany, Australia, United Kingdom, France, Latin America, and North America. Increased demand for FaceTime's new Enterprise IT solutions for security, management, and control of IM represented the highest growth segment, resulting in 44% of total revenues for the quarter. The company's historical leadership in vertical market line-of-business solutions for regulatory compliance and customer service experienced continued growth through major repeat and new customer orders. A multitude of new customers representing all markets were signed through FaceTime's unique IM network provider partnerships. OEM royalty income from sales of partner solutions that embed FaceTime technology also exceeded that of the previous quarter.

"FaceTime's tremendous second quarter results demonstrate our continued leadership in an increasingly hot market," said President and CEO Glen D. Vondrick. "Despite constrained IT budgets, enterprises in a myriad of industries recognize FaceTime's ability to deliver solutions that enable them to cost-effectively leverage the power of instant messaging on any IM network. Our recent results demonstrate not only the strong execution of our business strategy by our sales team and the increased market demand for our products, but also signal the increasing use of IM by businesses worldwide. We will continue our leadership by growing our operations through new alliances with premier resellers and continuing to provide solutions that enable the safe adoption of IM."

FaceTime's suite of security, management and control solutions enables IT organizations to apply standard business use policies to all diverse methods of real-time communications such as IM on any public, private or enterprise network as well as the ability to extend presence into business process workflow applications. Among the major global corporations that have chosen or built upon earlier installations of FaceTime's solutions in Q2 are: Fred Alger Management, Inc, Hewlett Packard, Ingram Micro, IA Englander, Midway Data, NCR, Nutmeg Securities, Ltd., Société Générale Group, and Soleil Securities Group, Inc.

"When it came to selecting a provider of instant messaging security, management, and control solutions, FaceTime offered the market leadership, customers and product functionality we needed to feel confident in our decision," said Bogdan Slodownik, Director Information Technologies, Fred Alger Management, Inc. "With FaceTime, our organization is able to safely leverage instant messaging for competitive advantage with the investment protection from an industry leader."

"With the use of instant messaging in global corporations reaching triple digit annual growth rates, the majority of IM traffic is still with the public IM networks," said Paul Ritter, Program Manager, The Yankee Group. "Companies are increasingly turning to scalable multi-network IM solutions such as FaceTime's enterprise IM management suite of solutions. FaceTime has been the early pioneer in providing IM management solutions that support any public or private network to enterprises. With so many business users already using various IM clients for real-time communications, a multi-network IM management platform is an ideal solution."

FaceTime solutions for IM security and management are now in use by over 300 enterprises including:

3 of the top 5 global technology companies
7 of the top 8 U.S. banking institutions
2 of the 3 largest Japanese banks
3 of the top European banks
3 of the top 4 Canadian banking institutions
More than 50 of the top 100 global financial services firms
6 of the largest U.S. energy companies
2 of the largest U.S. healthcare providers
3 of the largest U.S. insurance institutions
1 of the largest U.S. broadband cable network providers
1 of the largest U.S. travel companies
2 of the largest global retailers
2 of the world's largest media communications companies
2 of the largest U.S. government agencies

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About FaceTime Communications
FaceTime Communications enables the safe and productive use of instant messaging, Web usage and Unified Communications platforms. Ranked number one by IDC for four consecutive years, FaceTime's award-winning solutions are used by more than 900 customers – including nine of the 10 largest U.S. banks – for security, management and compliance of real-time communications. FaceTime supports or has strategic partnerships with all leading public and enterprise IM network providers, including AOL, Google, Microsoft, Yahoo!, Skype, IBM and Jabber.

FaceTime is headquartered in Belmont, California. For more information visit http://www.facetime.com or call 888-349-FACE. The FaceForward blog, at http://blog.facetime.com, offers thoughts and opinions about the changing nature of Internet communications.

PR Contact:

Emily Chamberlin
650-762-2945
echamberlin@ar-edelman.com