Press Release

FaceTime Communications Receives Additional Investment

Early Investors Reinvest as FaceTime's Instant Messaging for Business Solutions Continue to Gain Momentum

FOSTER CITY, CA-July 30, 2001 -- Furthering its position as the leading provider of instant messaging (IM) applications for enterprise businesses, FaceTime Communications today announced that it has received a fourth round of financing, raising the amount of venture capital investment in the company to over $40M. This round marks the second investment in FaceTime from TH Lee. Putnam Internet Partners and Sutter Hill Ventures.

The fourth round of venture capital financing will enable FaceTime to broaden its position as the leader in providing IM applications to Global 2000 enterprise businesses, and move the company toward its profitability goals. FaceTime will utilize the investment to further the development and marketing of applications and services designed to help enterprise businesses leverage IM for time-sensitive communications and problem resolution.

FaceTime provides an enterprise software server, Instant Message DirectorÔ, which manages IM communications across the rapidly growing public IM networks such as AOL, Microsoft and Yahoo!. Instant Message Director provides FaceTime's enterprise clients tremendous flexibility in managing real-time IM communications both internally and externally. The server automates finding the right knowledge experts, routing instant messages, and queuing traffic to those experts, similar to the way a traditional Automatic Call Distributor manages telephone calls. In addition, the Instant Message Director captures the knowledge shared throughout the interactions for future use. The server also includes enterprise level administration and management services such as auditing to a data warehouse, session monitoring, configuration management, and access to knowledge workers based on business rules and on-line presence.

Instant messaging networks from AOL, Microsoft and Yahoo! have been embraced by over 100 million people around the world as a revolutionary means of communication. With the explosive consumer adoption of these instant messaging networks within businesses, corporations are recognizing the need for a communications server that will internally manage IM traffic within corporate walls for time-sensitive communications with customers, employees, and partners. FaceTime's products enable businesses to achieve significant return on investment through increased first call resolution in call centers, and lower operational costs and increased employee productivity throughout the enterprise. In the call center, customers have reported a 70% decrease in call escalation using Instant Message Director for call escalation.

"FaceTime is delighted to receive strong backing from our investors," said FaceTime CEO, Glen Vondrick. "We are in an explosive and exciting market space with significant ongoing revenues from Global 2000 customers such as Compaq, Dell, BankOne, Homestore.com, and Western Union. Our unique technology partnerships with AOL and Microsoft to utilize their instant messaging networks, position FaceTime to be the platform that will enable these industry giants to integrate IM within enterprise business applications. This round of venture capital financing demonstrates the confidence investors have in our ability to execute upon our vision to be the premier supplier of instant messaging for business."

Instant messaging is the fastest growing communications channel in history. According to IDC, by 2004, over 400M clients will be using instant messaging to generate 2 trillion instant messages between consumers and businesses. Global 2000 contact center CRM budgets are predicted to be over $12 billion. Forrester Research states that by 2002, consumers will get answers to customer service queries by using instant messaging tools from the likes of AOL and Microsoft to link to agents and companies' knowledge bases. This channel will rapidly displace browser-based customer service chat systems. In addition, Forrester estimates that the average cost of a phone call to a contact center costs a business approximately $33 per call, whereas an instant messaging session costs about $7.33 per session.

About FaceTime Communications
Founded in 1998, FaceTime Communications is the leading provider of security solutions for the management and control of greynet applications such as adware/spyware, instant messaging, webmail, P2P file sharing, web conferencing and instant voice. FaceTime delivers the industry's first IMPact Index, which assesses "point-in-time" risks posed by viruses, worms and other malware propagating through greynet applications. FaceTime's award-winning solutions are used by over 600 customers, among them seven of the eight largest U.S. financial institutions. FaceTime supports or has strategic partnerships with all leading public and private IM network providers, including AOL, Google, Microsoft, Yahoo!, IBM, Bloomberg, Jabber and Reuters.

FaceTime is headquartered in Foster City, California. For more information visit http://www.facetime.com or call 888-349-FACE.

PR Contact:

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