Polycom Acquires DSTMedia, a Chinese Company Specializing in High Quality, Low Cost Video Network Solutions
Latitude Capital Group Acted as the Financial Advisor to DSTMedia on the Transaction
2005-08-24

DSTMedia Broadens Polycom's Presence in Asian Markets

PLEASANTON, Calif. & BEIJING - (BUSINESS WIRE) - August 24, 2005 - Polycom Inc. (NASDAQ: PLCM - News), the world's leading provider of unified collaborative communications solutions, today announced its acquisition of DSTMedia (TM) Technology Company, Ltd., a privately held video solutions company headquartered in Beijing, China. Founded in 2001 by an engineering team from Tsinghua University, China's foremost technology institute, DSTMedia is a leading provider of video network solutions for the Asia market. DSTMedia has also recently launched low cost IP video room systems, desktop products, and video walls for the China, India, Japan, and Southeast Asia markets.

DSTMedia has 90 employees, primarily in research, development, sales and support, who will join Polycom. DSTMedia has sales offices in Chengdu, Guangzhou, Nanjing, Shanghai, Shenzhen, Wuhan, and Xian. Its products will be distributed worldwide under the DST brand. DSTMedia CEO and Founder Xiong Sheng Feng will become a vice president of Polycom and general manager of DST, a wholly owned subsidiary of Polycom, reporting to Hans Schwarz, Executive Director of China, Senior Vice President, Technology and CTO of Polycom.

Morgan Stanley acted as financial advisor to Polycom in the transaction.

"DSTMedia is an impressive early-stage company that has already gained a leadership video network position in China and Japan and has crossed the threshold of over one million dollars in quarterly revenues," said Bob Hagerty, chairman and CEO of Polycom. "DST's low-cost video network platform and early-stage IP video endpoint platform is well-suited for mass deployment at the desktop and in group video space for departmental solutions and cost-sensitive vertical applications. This clearly positions Polycom as a leader in the fast growing, low-cost IP communications space. We welcome Xiong and his highly-productive team to Polycom."

"China is one of the most strategic markets for Polycom. DST significantly enhances our position in China with its seven sales offices and world-class engineering team based in Beijing," added Hans Schwarz. "With DST, Polycom will have an increased local presence, enhancing our position not only in China, but throughout Asia. DST also provides a product line that is optimized for Chinese commercial and government applications. We can leverage their technology across broader geographies, such as India, Japan, and other emerging IP video markets."

"DSTMedia has long admired Polycom for its global market leadership in IP-based video and voice collaborative communications. We at DST are proud to become part of Polycom and look forward to contributing significantly to their expansion in Asia and in broadening the Polycom footprint across the globe" said Xiong Sheng Feng. "With Polycom's channels and solid execution, we look forward to further drive the early success of DST's video network and endpoints products in Asia and world markets."

About DSTMedia

DSTMedia Technology Co., Ltd. is a leading developer and provider of IP voice, video and data communication and collaboration devices. DSTMedia has a comprehensive product line Session Initiation Protocol (SIP) and H.323 Multipoint Control Units (MCUs), a Video Wall Server, a Media Player, and RSS Conference Server and Management Software Tools. For additional information, visit the DST website at www.DSTMedia.com.

About Polycom

Polycom, Inc. is the worldwide leader in unified collaborative communications (UCC) that maximise the efficiency and productivity of people and organizations by integrating the broadest array of video, voice, data and Web solutions to deliver the ultimate communications experience. Polycom's high quality, standards-based conferencing and collaboration solutions are easy to deploy and manage, as well as intuitive to use. Supported by an open architecture, they integrate seamlessly with leading telephony and presence-based networks. With its market driving technologies, best-in-class products, alliance partnerships, and world-class service, Polycom is the smart choice for organizations seeking proven solutions and a competitive advantage in real-time communications and collaboration. For additional information call 1-800-POLYCOM (765-9266) or +1-408-526-9000, or visit the Polycom website at www.polycom.com. In the Asia Pacific region, Polycom has offices in Beijing, Hong Kong, New Delhi, Seoul, Shanghai, Singapore, Sydney and Tokyo. For additional information, please visit www.polycomasia.com.

This release contains forward-looking statements, within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, regarding the expectations, beliefs and strategies relating to Polycom's acquisition of DSTMedia Technology Co., Ltd., including statements regarding the expected future distribution and acceptance of DST products in the worldwide marketplace and the anticipated impact of the acquisition in enhancing Polycom's position in Asia and in the low-cost IP communications space. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the ability to successfully manage and implement the integration of DST's products and operations, the ability to retain and motivate key employees of DST, the loss of key DST customers, the impact of competition for DST's customers and products, market acceptance of Polycom's and DST's products generally and changing market demands, possible delays in the development, availability and shipment of new products, risks associated with changes in global economic conditions, and other risks and uncertainties that are discussed in the Company's Quarterly Report on Form 10-K for the quarter ended March 31, 2005, and in other reports filed by Polycom with the Securities and Exchange Commission. Polycom disclaims any intent or obligation to update these forward-looking statements.

Polycom and the Polycom logo are registered trademarks and DSTMedia is a trademark of Polycom in the U.S. and various countries. 2005, Polycom, Inc. All rights reserved.

Contact:

Polycom Inc.
Jessica Kersey, 925-924-5689
jessica.kersey@polycom.com

Polycom Asia Pacific
Sue Day, (65) 6311 9301
sue.day@polycom.com

or

Newell PR
Ivan Theodoulou (852) 2117 5007
Ivant@newell.com