PictureTel 900 Series Exceeds Expectations; Global Leaders Standardize on PictureTel iPower Integrated Collaboration Solutions

ANDOVER, Mass.----Jan. 10, 2001--PictureTel(R) Corporation, the world leader in integrated collaboration, today focused industry attention on the significant success and early marketplace traction it has achieved with the PictureTel 900 Series(TM), launched in July 2000.
    Based on iPower(TM) technologies, developed collaboratively with Intel Corporation, the PictureTel 900 Series represents a new category of integrated collaboration solutions. The PictureTel 900 Series combines videoconferencing, the PC, and the Internet to deliver intuitive, media-rich remote communications that provide the first real synonym for face-to-face interaction. In addition, the solution features the most powerful system management capabilities of any product in this class of communications equipment.
    The success of the PictureTel 900 Series is perhaps best expressed by new PictureTel customers, loyal users, and committed channel partners that have been quick to leverage the new iPower integrated collaboration capabilities. These early adopters include:

 ADP                                         The Hartford             
 Atlas Van                                   International Paper      
  Lines                                       Corporation
 AT&T                                        IBM Corporation          
 AXA Advisor                                 MBNA America Bank        
 Bernard Hodes Group                         National Cancer Institute
 Booz-Allen & Hamilton Inc.                  Nokia Networks           
 Caterpillar                                 PricewaterhouseCoopers   
 Coca-Cola                                   Sandia National          
 CommerceOne                                 Shell                    
 Dow Chemical                                TRW                      
 FedEx Logistics                             University of Delaware   
 Dell Computer Corporation                   U.S. Air Force           
 Florida Department of Juvenile Justice      U.S. Army                
 Goldman Sachs & Company                     U.S. Department of 
 U.S. Department of Veteran                  U.S. Department of      
  Affairs                                     Justice
 U.S. Office of Immigration                  U.S. Navy
  and Naturalization                         Vanguard

    "Time and time again, customers have been disappointed with traditional videoconferencing," states Rob Sheeley, president, Acoustic Communication Systems, a full-service communications integration company. "In sharp contrast, the PictureTel 900 Series exceeds all expectations - with broadcast-quality audio and video and, finally, the practical collaboration capabilities that transform remote meetings into highly productive working sessions. Customers are reducing product development cycles, driving the decision-making process, and reducing the requirement for corporate travel - improving productivity, bottom line profitability, and boosting morale."
    "Very simply, the iPower platform helps businesses remove the technical obstacles to productivity," says Lew Jaffe, President and Chief Operating Officer, PictureTel. "Users can share ideas, pull in experts, and at a high level, make more informed decisions. Industry analysts predict tremendous growth in the PC-based collaboration solution market. PictureTel is committed to evolving the iPower platform to meet growing market demand to continue to exceed customer expectations."

    About PictureTel

    PictureTel Corporation (NASDAQ:PCTL) is the world leader in developing, manufacturing, and marketing a full range of visual- and audio- collaboration platforms. PictureTel also owns 1414c, a communications ASP that greatly simplifies the network complexity inherent in mixed rich media collaboration. PictureTel markets network conferencing servers in addition to the complete range of end-point products and delivers a global capability to service, support, and provide complete solutions for customers needing rich media communications. PictureTel is fundamentally in the business of eliminating the barrier of distance, enabling people to be Anywhere Now.(TM)

    This release includes projections and other forward-looking statements about the company's revenues, earnings, and other measures of economic performance. Actual results could differ materially from forecasts due to many factors such as, for example, competitive pressures, changes in technology, and the difficulty in forecasting in overseas markets and indirect channels. Additional information concerning risks that could cause actual results to differ is contained in the company's annual report on Form 10-K and its Form 10-Q as filed with the SEC. The company undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise.

    PictureTel is a registered trademark of PictureTel Corporation. PictureTel 900 Series, iPower, and Anywhere Now are trademarks of PictureTel Corporation. All other terms and products names may be trademark or registered trademarks of their respective owners.


    CONTACT: PictureTel
             O'Keeffe & Company, Inc.
             Betsy Parkins, 610/325-2099
             Nicole Burdette, 610/325-6550