Polycom leads group video market in units shipped and revenue in 2000; debuts as volume leader in desktop video market after just four months.

MILPITAS, Calif., March 14, 2001 -- Polycom®, Inc. (NASDAQ: PLCM), a worldwide leader in broadband communication solutions, today announced that Wainhouse Research, a leading video communications analyst firm, rated Polycom the worldwide market leader in group videoconferencing systems for 2000 based on the number of units shipped and revenue market share of its award-winning ViewStation™ group video communications systems. Polycom also ended 2000 as volume leader in the desktop video communications market after less than four months of shipping its ViaVideo™ desktop appliance.

“In 2000, we were able to leverage Polycom’s experience in the group video communications market to deliver a breakthrough desktop system with leading technology and innovative design,” said Craig Malloy, senior vice president and general manager of video communications at Polycom. “The combination of group and desktop video communications systems is helping to bring the cost-savings, productivity and improved collaboration benefits of visual communication to businesses of all sizes.”

In the group video communications market, Polycom’s ViewStation led four consecutive quarters in 2000 based on the number of units shipped and revenue market share. In the desktop video communications market, Polycom ended 2000 as the market leader based on units shipped, as its new ViaVideo desktop appliance became the most popular desktop solution after just four months shipping.

The data, collected by Wainhouse Research and published in the March 1, 2001 issue of The Wainhouse Research Bulletin (available at www.wainhouse.com) showed that Polycom’s ViewStation group video products earned a 51.5 percent global market share during the fourth quarter of 2000, more than three times the number of units than the next closest supplier. In the desktop video market, the report showed that Polycom owned 43 percent market share in units shipped during the fourth quarter, nearly twice as many as the nearest supplier.

Industry statistics showed continued growth in the overall videoconferencing market during 2000. According to Wainhouse Research, the annualized growth rate for group system revenues was 38 percent, while the annualized growth rate for desktop appliance revenues was 61 percent.

“The increasing popularity of broadband in work and home environments is helping to drive the adoption of exciting new communications tools that will continue to enhance the way people manage their relationships,” said Malloy. “With our expertise in both voice and video communications, Polycom is well positioned to address this growing demand for broadband communications tools with innovative, easy-to-use and affordable products.”

About Polycom
Based in Milpitas, Calif., in the heart of Silicon Valley, Polycom, Inc., develops, manufactures and markets a full range of premium-quality, media-rich communication tools and network access solutions. Polycom’s integrated communication solutions enable business users to immediately realize the benefits of video, voice and data over rapidly growing converged networks. For additional information, call 1-800-POLYCOM (765-9266) or 408/526-9000, or visit the Polycom web site at www.polycom.com.
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Polycom and the Polycom logo are registered trademarks, and ViaVideo and ViewStation are trademarks of Polycom in the U.S. and various countries. ©2000, Polycom, Inc. All rights reserved.

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