PictureTel Announces Complete Videoconferencing Solution for Banking And Financial Services Industry

Breakthrough Call Center Combines with PictureTel Desktop Videoconferencing, Kiosk, Networking and Systems Integration to Provide All-In-One Video-Banking

ANDOVER, Mass., Aug. 25- PictureTel Corporation (Nasdaq: PCTL), the world leader in videoconferencing solutions, today announced a complete videoconferencing solution for banking and the financial services industry.The breakthrough call center, when combined with PictureTel desktop videoconferencing systems, kiosks, networking and systems integration, will provide banks and other financial institutions with an all- in-one solution for video- banking.

Sixty-five percent of all Fortune 500 financial services companies are PictureTel users.Currently some 400 financial services organizations worldwide have deployed more than 4,000 PictureTel systems.One of those organizations, Peoples Bank, the largest independent bank in Connecticut, offers video banking in branches located inside the largest supermarket chain in Connecticut.

"Videoconferencing from PictureTel has provided us with a way that has taken us a leap beyond any other bank in our marketplace and has met our customers needs," said Pat Manion, first vice president, direct banking, Peoples Bank, Bridgeport Conn., "With video banking we can bring expertise to our customers when they want it and not have to worry about people waiting all over the state for when a customer might walk in."

The call center is one of the most significant advantages of PictureTel's recent acquisition of MultiLink.As a bank deploys video-enabled end points to sell and service their customers, a video call center is required.The video call center technology enables a remote video call to be processed at a call center in the same way an audio call is handled.The video call is placed on hold if an expert is not available and then transferred once an agent is free.A video call center also allows for a supervisor or manager to be present during a video call along with the customer and the call center expert.

Virtual Shopping, Inc., a PictureTel partner, provides an easy- to-use kiosk with a PictureTel desktop videoconferencing system installed.This provides customers with access to experts as well as to transact an array of banking services such as applying for loans, opening checking accounts and mortgage origination from any location where the kiosk is installed.

"We are the first to offer the banking industry a total video- banking solution," said Ann King, director of financial services marketing for PictureTel."Others offer a piece of the solution but fail to incorporate it into an entire video-banking solution, leaving the customer at a loss for how to properly use it.We have taken our existing videoconferencing solution and partnered with companies who provide a kiosk, networking and systems integration to create our total solution which will provide banks with a new and innovative tool for better servicing their customers."

PictureTel Corporation is the world leader in developing, manufacturing and marketing a full range of videoconferencing solutions.The company's systems meet customers' videoconferencing needs from the desktop to the boardroom.PictureTel also markets network conferencing products and a comprehensive portfolio of enterprise-wide services.The company provides complete videoconferencing solutions to customers in the distance learning, health care and financial services market segments.Additional PictureTel information is available on the Internet at www.picturetel.com.PictureTel videoconferencing eliminates the barrier of distance, enabling people to be Anywhere Now(TM).

NOTE:PictureTel and MultiLink are registered trademarks and Anywhere Now is a trademark of PictureTel Corporation.