First Virtual Communications Announces Preliminary First Quarter Results

Revenue Growth Impacted by Economic Slowdown



Apr 19, 2001, 01:00 ET from First Virtual Communications, Inc.

    SANTA CLARA, Calif., April 19 /PRNewswire/ --
 First Virtual Communications, (Nasdaq:   FVCX), a leader in broadband rich media
 communications networking services and systems, today announced that it
 anticipates revenues for the quarter ended March 30, 2001 to be approximately
 $4.3 million.
     The Company said that the current market conditions had dramatically
 lengthened purchasing decision cycles, especially for the company's historical
 ATM-based deployments.  "While we are very disappointed with this quarter's
 financial results, we had anticipated a difficult quarter in light of the
 current economic conditions.  We are also very optimistic about FVC's future
 growth opportunities.  We strongly believe that rich media communications is
 becoming a key tool for enterprises to effectively compete in a down economy,"
 said Ralph Ungermann, Chairman and CEO of First Virtual Communications.  The
 Company said that its rich media communications offering can result in
 increased productivity and significant cost savings through the increase of
 collaborative communications and reduced travel.
     First Virtual Communications said it is confident that its recently
 announced merger with CUseeMe Networks will greatly enhance the Click to Meet
 product offering as an end-to-end IP-based rich media communication solution.
 This will allow First Virtual Communications to significantly strengthen its
 position in the service provider and enterprise rich media communications
 market in the second half of the year.
     The Company said that management will address the financial results in
 greater detail at the time of the first quarter earnings release on
 Tuesday, April 24, 2001.  A conference call has been scheduled to begin at
 2:00 p.m. PDT and will last for approximately one hour.  Please dial
 703-871-3022 at least five minutes prior to the start time to participate on
 the call.
     Investors have the opportunity to listen to the conference call live on
 the Internet at the Company's website at http://www.fvc.com , under Investor
 Relations -- by clicking on the webcast icon.  Investors should go to the
 website a few minutes early, as it may be necessary to download audio software
 to hear the conference call.  To do so, investors should click on the Real
 Player icon and follow directions from there.  A replay of the conference call
 will be available through the Company's website for 7 days or via phone at
 703-925-2435, passcode #5114077 through May 1st, 2001.
 
     About First Virtual Communications
     First Virtual Communications, Inc. is a leader in rich media
 communications solutions, providing systems and services that enable system
 integrators and service providers to deliver an integrated suite of
 collaboration applications to its enterprise customers. First Virtual
 Communications also delivers solutions directly to corporate and public sector
 enterprises.  The company's flagship product, Click to Meet(TM), is the
 industry's communications platform for high quality, face-to-face
 e-collaboration.  It is designed to seamlessly integrate video and audio
 telephony, data collaboration, and streaming across IP, ISDN, DSL, and ATM
 networks.  Click to Meet provides the optimal platform for delivering a new
 generation of video enabled B2B web applications, for commerce, distance
 learning, telemedicine, federal and state governments, and the judiciary.
     CUseeMe Networks and First Virtual Communications have announced the
 execution of an agreement under which the two companies would be merged to
 create one of the market's leading rich media communications providers.  The
 transaction is intended to allow the merged enterprise to leverage greater
 market opportunities through its combined resources, products, and expertise.
 The transaction is expected to be completed in the second quarter of 2001.
 
     Cautionary Statement
     Except for the historical information contained herein, this news release
 contains forward-looking statements, including, without limitation, statements
 containing the words, "believes," "anticipates," "expects," "is confident" and
 words of similar import.  Such forward-looking statements have known and
 unknown risks, uncertainties and other factors that may cause the actual
 results, performance or achievements of First Virtual Communications, or
 industry results, to be materially different from any future results,
 performance or achievements expressed or implied by such forward-looking
 statements.  Such factors include, among others:  First Virtual
 Communications' variability of operating results, First Virtual
 Communications' recent launch of its broadband video services offering, market
 acceptance of video technology, First Virtual Communications' dependence on
 ATM backbone technology, potential inability to maintain business
 relationships with telecommunications carriers, distributors and suppliers,
 rapid technological changes, competition and consolidation in the video
 networking industry, the importance of attracting and retaining personnel,
 management of First Virtual Communications' growth, the risk that the merger
 with CUseeMe will not be completed as anticipated and that the two companies
 may not be successfully integrated, and other risk factors referenced in First
 Virtual Communications' public filings with the Securities and Exchange
 Commission, including the company's report on Form-10K for the year ended
 December 31, 2000.
 
 

SOURCE First Virtual Communications, Inc.
    SANTA CLARA, Calif., April 19 /PRNewswire/ --
 First Virtual Communications, (Nasdaq:   FVCX), a leader in broadband rich media
 communications networking services and systems, today announced that it
 anticipates revenues for the quarter ended March 30, 2001 to be approximately
 $4.3 million.
     The Company said that the current market conditions had dramatically
 lengthened purchasing decision cycles, especially for the company's historical
 ATM-based deployments.  "While we are very disappointed with this quarter's
 financial results, we had anticipated a difficult quarter in light of the
 current economic conditions.  We are also very optimistic about FVC's future
 growth opportunities.  We strongly believe that rich media communications is
 becoming a key tool for enterprises to effectively compete in a down economy,"
 said Ralph Ungermann, Chairman and CEO of First Virtual Communications.  The
 Company said that its rich media communications offering can result in
 increased productivity and significant cost savings through the increase of
 collaborative communications and reduced travel.
     First Virtual Communications said it is confident that its recently
 announced merger with CUseeMe Networks will greatly enhance the Click to Meet
 product offering as an end-to-end IP-based rich media communication solution.
 This will allow First Virtual Communications to significantly strengthen its
 position in the service provider and enterprise rich media communications
 market in the second half of the year.
     The Company said that management will address the financial results in
 greater detail at the time of the first quarter earnings release on
 Tuesday, April 24, 2001.  A conference call has been scheduled to begin at
 2:00 p.m. PDT and will last for approximately one hour.  Please dial
 703-871-3022 at least five minutes prior to the start time to participate on
 the call.
     Investors have the opportunity to listen to the conference call live on
 the Internet at the Company's website at http://www.fvc.com , under Investor
 Relations -- by clicking on the webcast icon.  Investors should go to the
 website a few minutes early, as it may be necessary to download audio software
 to hear the conference call.  To do so, investors should click on the Real
 Player icon and follow directions from there.  A replay of the conference call
 will be available through the Company's website for 7 days or via phone at
 703-925-2435, passcode #5114077 through May 1st, 2001.
 
     About First Virtual Communications
     First Virtual Communications, Inc. is a leader in rich media
 communications solutions, providing systems and services that enable system
 integrators and service providers to deliver an integrated suite of
 collaboration applications to its enterprise customers. First Virtual
 Communications also delivers solutions directly to corporate and public sector
 enterprises.  The company's flagship product, Click to Meet(TM), is the
 industry's communications platform for high quality, face-to-face
 e-collaboration.  It is designed to seamlessly integrate video and audio
 telephony, data collaboration, and streaming across IP, ISDN, DSL, and ATM
 networks.  Click to Meet provides the optimal platform for delivering a new
 generation of video enabled B2B web applications, for commerce, distance
 learning, telemedicine, federal and state governments, and the judiciary.
     CUseeMe Networks and First Virtual Communications have announced the
 execution of an agreement under which the two companies would be merged to
 create one of the market's leading rich media communications providers.  The
 transaction is intended to allow the merged enterprise to leverage greater
 market opportunities through its combined resources, products, and expertise.
 The transaction is expected to be completed in the second quarter of 2001.
 
     Cautionary Statement
     Except for the historical information contained herein, this news release
 contains forward-looking statements, including, without limitation, statements
 containing the words, "believes," "anticipates," "expects," "is confident" and
 words of similar import.  Such forward-looking statements have known and
 unknown risks, uncertainties and other factors that may cause the actual
 results, performance or achievements of First Virtual Communications, or
 industry results, to be materially different from any future results,
 performance or achievements expressed or implied by such forward-looking
 statements.  Such factors include, among others:  First Virtual
 Communications' variability of operating results, First Virtual
 Communications' recent launch of its broadband video services offering, market
 acceptance of video technology, First Virtual Communications' dependence on
 ATM backbone technology, potential inability to maintain business
 relationships with telecommunications carriers, distributors and suppliers,
 rapid technological changes, competition and consolidation in the video
 networking industry, the importance of attracting and retaining personnel,
 management of First Virtual Communications' growth, the risk that the merger
 with CUseeMe will not be completed as anticipated and that the two companies
 may not be successfully integrated, and other risk factors referenced in First
 Virtual Communications' public filings with the Securities and Exchange
 Commission, including the company's report on Form-10K for the year ended
 December 31, 2000.
 
 SOURCE  First Virtual Communications, Inc.