Polycom Enhances VSX Video Conferencing Systems with Improved Video and Audio Quality and Extended Data Sharing

October 20, 2004

PLEASANTON, Calif. – Oct. 20, 2004 – Polycom®, Inc. (NASDAQ: PLCM), the world’s leading provider of unified collaborative communications solutions, today announced new software for its industry-leading Polycom VSX™ line of video conferencing solutions. Polycom VSX Release 7.5 software delivers several enhancements that improve the quality of video calls, and introduces People+Content™ IP, a software option for sending and receiving high-resolution content from a laptop or PC between any Polycom VSX system (including the Polycom V500™).

“The Polycom VSX product line is based on a common software architecture, which enables us to deliver breakthrough features and functionality more frequently than ever before,” said Ed Ellett, senior vice president and general manager of video communications at Polycom. “These new features help to improve the quality of a user’s video conferencing experience and also provide a flexible new option for sharing PC data during a video call from wireless or connected PCs. Customer-focused features like Polycom StereoSurround™ and video error concealment for H.264 are just the latest examples of Polycom’s video conferencing technology leadership.”

People+Content IP – Flexible Content Sharing For Any VSX SystemBR> People+Content IP is a new PC software application that enables users to send and receive high-resolution content from their PC to any VSX video conferencing system during a video call. The content can be anything on a PC, including slides, motion video or applications. People+Content IP introduces new, flexible options for sharing Content during a video call, including wireless Content sharing from PCs with wireless-networking capabilities, and Content sharing for voice-only participants in a video conference. The People+Content IP option enables Polycom V500 and VSX 3000 users to now send Content. This new product also offers an additional software only Content sharing solution for VSX 7000 Series and VSX 8000 Series users (in addition to People+Content hardware solutions).

Polycom StereoSurround – Simplified Set-Up and SoundStation® VTX 1000 Support
Polycom StereoSurround is a patent-pending technology that delivers the most natural and realistic conferencing experience to date by adding a spatial dimension to video calls. When people are normally together, they can hear not just voices but also they can tell where the person is in the room by sensing the direction of the sound. This enables better intelligibility and comprehension of information during a video call. Polycom VSX Release 7.5 software now delivers support for StereoSurround through a single, digital tabletop microphone (as opposed to two previously), offering a more efficient and cost-effective solution. Building on the integration between the Polycom VSX video conferencing systems and the SoundStation VTX 1000 wideband conference phone, which enables users to dial a video call from the conference phone, VSX Release 7.5 software also enables Polycom StereoSurround to work through the SoundStation VTX 1000 (for VSX 7000 or VSX 8000 systems). This enables users to leverage the SoundStation VTX 1000 as the dialing interface and microphones for video calls with Polycom StereoSurround quality.

Extended Video Error Concealment for Higher Quality Video through H.264
Polycom has led the video conferencing industry in the delivery of audio and video error concealment technology, which improves the quality of video calls by concealing the noticeable effects of network congestion and packet loss during a video call. Polycom VSX Release 7.5 software delivers the first video error concealment for H.264 video calls, which enables customers to benefit from higher quality calls over lower bandwidth (H.264 benefit) with embedded error concealment for IP or ISDN networks.

Pricing and Availability
Polycom VSX Release 7.5 software will be available in December 2004 as a software upgrade for customers with current service agreements. The People+Content IP option will be available in December 2004 for a manufacturer’s suggested retail price of $899 license fee per video endpoint with unlimited access to the Polycom PC application for the laptop/PC.

About Polycom
Polycom, Inc. is the world’s technology leader of high-quality, easy-to-use video, voice, data and web conferencing and collaboration solutions. The Polycom Office™ is our continued commitment to make distance communications as natural and interactive as being there by providing best-in-class conferencing solutions that are interoperable, integrated and intuitive to the user. The Polycom Office is based on industry standards and supported by an open architecture that promotes interoperability in multi-vendor environments and complements leading network infrastructure platforms. For additional information, call 1-800-POLYCOM (765-9266) or +1-408-526-9000, or visit the Polycom web site at Read http://www.polycom.com/.

Polycom, the Polycom logo and SoundStation are registered trademarks and Polycom Office, VSX, People+Content, V500 and Polycom StereoSurround are trademarks of Polycom in the U.S. and various countries. All other trademarks are the property of their respective owners. ©2004, Polycom, Inc. All rights reserved.
This press release contains forward-looking statements regarding future events, future demand for our products, and future growth prospects that involve known and unknown risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions, which may differ materially from our or our industry’s actual future events or results. Further information on potential factors that could affect the Company’s financial results are discussed in our 2003 form 10-K , quarterly reports on form 10-Q, and other reports filed by Polycom with the SEC.