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3 To Our Shareholders: In 2004, V 2 oip, or voice and video over IP, became a significant driver for Polycom and the converged collaboration industry. In fact, exiting the year, 54% of our revenues were generated by products connected to IP networks. IP connectivity is enabling mainstream deployment of unified voice, video, web, and data communications for the first time in history. Today, both wired and wireless networks are capable of delivering the required bandwidth for a unified collaborative communications experience. Real-time collaborative communications bring bottom line benefits to both commercial and public sector enterprises including quantum productivity gains, enhanced customer relationships, faster time to decision, and an increase in the agility of today's distributed, extended, and mobile organizations. As a result, converged collaboration has become mission critical through a broad array of applications in the financial services, automotive, pharmaceutical, judicial, government, and education market arenas to name a few. Our Objectives With this powerful backdrop, Polycom continued to execute our strategic plan through delivering on several key objectives: Standards Industry standards are crucial, especially in the communications industry, as our solutions are integrated with an existing array of heterogeneous networking environments from Avaya, Cisco, Juniper, Microsoft, Nortel, and others. Polycom continues to take a leadership position with the International Telecommunications Union (ITU) and other relevant standards setting bodies in driving the standards enabling any-to-any connectivity. For instance, in addition to our support of the H.323 IP communications standard across our entire product line, Polycom is the first to have end-to-end video capabilities over the session initiation protocol, or SIP, standard viewed as critical by CIOs worldwide. Call Management Integration Powered by an IP-based one wire network, customers are looking to gain the benefits of unified collaborative communications in their meeting rooms and at their desktops using a standard telephone interface. Anticipating this important step in mainstream customer demand, Polycom has partnered with Avaya, a leader in voice over IP solutions, to deliver a robust solution that integrates Polycom video with the Avaya softphone and call manager. We also are partnered with Nortel, Cisco, BroadSoft, Sylantro, and others to deliver a communications capability where voice, video, and web communications are seamlessly integrated and represent a simple phone call for the user. Presence-Based Communications The other rapidly-evolving user interface some call it the next generation dial-tone is instant messaging via a desktop PC or a mobile device. We have just announced our second stage integration with Microsoft, the result of a strategic joint development and co-marketing agreement that we signed last year. In the Microsoft environment, Polycom is uniquely positioned to deliver a presence-based calling model that integrates with Windows Messenger, Microsoft Office Communicator (formerly Istanbul ) and Microsoft Office Live Communications Server, and, through our work together, will ultimately provide point and click multiway video as well as voice calling through the Microsoft Office Live Meeting service. Technology Leadership Polycom continued to introduce breakthrough products and technologies in the past year from: office and high-end performance VSX video systems, to the PVX for high quality video conferencing as a desktop application, to the first wireless SoundStation, the world's leading conference phone. In tests of the industry's video networking products, VeriTest, a leading independent technology testing organization, demonstrated Polycom's multipoint control units (MCUs) outperformed the competition with greater capacity, security, scalability and manageability. VeriTest's testing also found no other bridge can connect more of the devices and protocols in today's mixed media environments. Polycom also introduced the first scheduling and management appliance with the ReadiManager LX100. Polycom took conversational voice quality to an unprecedented level with StereoSurround sound and delivered the unique ability to monitor the presence of devices to Microsoft with the integration of Polycom WebOffice and Windows Messenger. Polycom continued building convergence into our products by delivering the only converged voice and video solution in which the SoundStation VTX 1000 wideband conference phone can initiate a VSX video call and the QSX connects your laptop and its content to any conference phone. Polycom received recognition from Fast Company magazine as one of the top five most innovative telecommunications and networking companies. In addition, Gartner Group, a leading provider of market research, positioned Polycom in the Visionary quadrant of the latest Unified Communications Magic Quadrant. Service Providers Through our video and voice network systems offerings, Polycom continued to gain traction in 2004 with the significant service providers around the world. SBC, China Unicom, MCI, BT, France Telecom, Japan Telecom, and Telstra are a few of the key service providers who use our network infrastructure products to provide voice and video bridging/gateway services and often bundle our endpoints in a managed service offering for their customer base. As collaborative communications continues to penetrate large enterprise and move into the small to medium enterprise and consumer segments, service providers are seeing the opportunity to provide media-rich connectivity for people in their work and daily lives. With our growing network solutions, Polycom is positioned to capture this core network opportunity in partnership with our service provider customers.

4 The Results Polycom generated a significant improvement in results in 2004 establishing new records in annual revenues. The following highlight a few of our significant financial accomplishments for the year: Net Revenues (in millions) Gross Margin Operating Cash Flow (in millions) 2004 Revenue Growth Polycom crossed the half billion mark for the first time in the company's history to $540.3 million. Revenues grew 29% for the year as reported, or 20% net of our Voyant acquisition. By product area, Voice grew 40%, Video grew 12%, and Video Network Systems grew 29%. $343.6 $366.8 $452.1 $420.4 $ % 60.4% 58.5% 60.6% 63.2% $38.1 $76.7 $81.5 $100.8 $79.6 Gross Margins As a proof-point on our sustained product differentiation and value proposition, Polycom's gross margins again achieved a record 63.2% in 2004, up from 60.6% in Profits Polycom's GAAP net income grew 55% in 2004 over the prior year, driven by the operating leverage of our business evidenced through the year. Balance Sheet We exited the year with DSOs of 39 days, inventory turns of 7.7, no debt, and a cash and investments balance of $535.2 million. Our extremely healthy balance sheet gives confidence to our customers and partners that we are a leader who has the resources to deliver industry leading innovations for years to come. Looking Forward Technological Leadership Our customers are depending on Polycom to make the investments necessary to lead the collaborative communications industry by providing an immersive communications experience whether at their desk, in a meeting room, or on a mobile device. As with end-to-end SIP video, stereo audio in a video call, or encrypted wireless conference voice products, Polycom is devoted to providing the industry firsts that are driving IP-based converged collaboration into the mainstream. Also, with our V 2 IU Voice Video Interface Unit, Polycom is beginning to enable standards-based IP video communications securely through firewalls. Strategic Partnerships Polycom is continuing to work closely with the most important strategic partners in the communications ecosystem. We will continue to devote significant resources to our co-development and selling activities with Avaya, Microsoft, Nortel, Cisco, and the other leading members of the evolving IP communications network. With the advent of 3G wireless networks and their ability to deliver media-rich communications to mobile devices, partnerships with mobile phone providers will be key. In addition, we plan to develop new strategic partnerships in many of the emerging markets throughout the world. Go to Market As the converged collaboration market continues to show signs of being one of the most rapidly growing sectors in technology, Polycom will continue to focus our go-to-market model to optimize high touch sales for larger deployments while leveraging our channel partner relationships, capturing the complete array of customer opportunities. This will be achieved through new programs that educate, certify, incent and reward our channel partners, coupled with field execution by our sales and service organization. Our customers can expect an unparalleled experience with Polycom from the first contact through years of reliable performance. Sector Expansion With the capabilities provided through IP-based wired and wireless networks, customers can benefit from converged collaborative communications in virtually every major industry and government application. With the new enabling technology and our industry leading innovations, Polycom is able to reach meeting rooms and desktops in enterprises of all sizes with solutions that meet the needs of specific market segments. In addition, we are now able to further cement our relationship with the rapidly-increasing needs of the service provider community. With our leadership position at these carriers, Polycom is also uniquely positioned to capture the emerging consumer opportunity by providing the network component and embedded technology for the consumer use of these technologies over the next few years. In summary, the converged collaboration space is a direct beneficiary of the confluence of several unprecedented technology enablers and customer drivers. With V 2 oip and 3G wireless networks, the integration of collaborative technologies into the distributed, extended, and mobile enterprise is now becoming possible worldwide. Polycom is poised to contribute through our deep technological expertise, our market-leading products and services, and our unique end-to-end solution. I would like to thank our customers, channels, strategic partners, and employees for their ongoing commitment and confidence in Polycom. Robert C. Hagerty Chairman and CEO

5 Why Polycom? Polycom is the world's leading provider of unified collaborative communications solutions. With the greatest breadth and depth of integrated video, voice, and Web solutions, Polycom delivers the ultimate communications experience. Our market-leading conferencing and collaboration products, supported by world-class service, enable people and organizations to maximize their effectiveness and productivity. Add to that the most experience and demonstrated best practices in the industry, and it s clear why Polycom has become the smart choice for organizations seeking a strategic advantage in the real-time world. Unified Collaborative Communication for the Real-Time Enterprise The Communications Needs of the Extended Organization Source: The Yankee Group, 2004 The Polycom Advantage UCC delivers measurable value to an organization and is a competitive advantage Polycom is the expert in UCC and the best choice to maximize its potential for an organization Polycom is the partner of choice in major network environments Polycom delivers superior quality, reliability, interoperability Polycom is the market leader in Voice, Video, and Infrastructure solutions Polycom is the smart and safe choice, offering unparalleled investment protection, standards-based applications, and innovative service and support

6 2005 Polycom,Inc. All rights reserved. Polycom and the Polycom logo design are registered trademarks of Polycom, Inc. in the U.S. and various countries. All other trademarks are the property of their respective companies. Specifications are subject to change without notice. Polycom Headquarters: 4750 Willow Road, Pleasanton, CA (T) POLYCOM ( ) for North America only. For North America, Latin America and Caribbean (T) , (F) Polycom EMEA: 270 Bath Road, Slough, Berkshire SL1 4DX, (T) +44 (0) , (F) +44 (0) Polycom Asia Pacific: Polycom Hong Kong Ltd., Rm 1101 MassMutual Tower, 38 Gloucester Road, Wanchai, Hong Kong, (T) , (F) Rev. 3/05

7 Polycom Video Conferencing For the ultimate collaboration experience, go with the leader Why is it that some companies succeed and others fail? It often has little to do with the quality of their products, and everything to do with the speed and integrity of their decision-making. Having the right information in real time enables organizations to make better decisions, faster. And, in today's business environment, that level of hyper-productivity can result in a significant competitive advantage by allowing you to respond more quickly to customer demand, solve support issues, react to market opportunities, and battle competitive threats. With support for 12 localized languages, Polycom also delivers globally, over all types of network environments. Doctors use Polycom's VSX and PVX systems for treating patients remotely. VSX systems are deployed in classrooms for distance learning applications, while virtual global teams employ them for engineering review management. And, soldiers overseas use Polycom video products to communicate with loved ones back home all at a moments notice. In fact, Polycom leads the industry with video conferencing installed solutions. Polycom's offering of flexible configurations take care of everyone from meeting road warriors calling from their laptops, to employees sitting at desktop PCs, to executives gathered in the boardroom at corporate headquarters and large-scale auditorium-style gatherings. Enjoy Unparalleled Ease of Use One reason for Polycom's popularity is how easy these systems are to use: anyone can add content from a PC, the Web, or even a piece of paper that can be seen by everyone in the virtual conference room. And it's also easy to add more people to a call using built-in bridging capabilities. For impromptu meetings, you can add participants over video or voice only. Management solutions enable system management from a single, remote Web browser. Sharp video resolution with exceptional sound and very low bandwidth requirements makes meetings more natural. You'll enjoy a common user experience throughout the product line-so you can easily move from one VSX system to another. That simplifies training and makes meetings much more efficient. Take Advantage of Unmatched Technological Leadership No other company can match Polycom's video conferencing technology advancements. Polycom's audio technologies in a video call insure voice integrity and completeness. Our embedded audio error correction ensures that audio is never lost due to busy network traffic. And, our echo cancellation and automatic noise suppression technologies help to filter out extraneous noise and deliver the rich, robust sound you expect to hear in a face-to face meeting. Plus, all Polycom VSX systems deploy standards-based video technologies that allow for delivery of the sharpest, most natural video in the industry, regardless of bandwidth requirements The VSX family of products enables you to access the power of Polycom unified collaborative communications solutions. With the greatest breadth and depth of integrated video, voice, and Web solutions, only Polycom delivers the ultimate communications experience. Our marketleading conferencing and collaboration products, supported by world-class service, enable people and organizations to maximize their effectiveness and productivity. Add to that the most experience and proven best practices in the industry, and it's clear why Polycom has become the smart choice for organizations seeking a strategic advantage in a real-time world. To learn more about Polycom's family of video conferencing products, go to Connect. Any Way You Want.

8 Polycom VSX Family of Products VSX 8800 Maximum performance in a high-end video conferencing system For the best all-around group video performance, the VSX 8800 is your choice. It comes with tools that enable the adding multiple participants to a single video conference, People+Content collaboration, voice tracking PowerCam Plus camera, and Polycom StereoSurround with high-fidelity speakers. Use the VSX 8800 in your own custom integrated environment, or pair it with the dual, 50-inch plasma Executive Collection. Included with the VSX 8800 is the ability to hold a multipoint call with up 10 cascaded video conference participants. VSX 8400 Performance product that's ideal for use in an instructor or presenter environment Employing the People+Content feature and PowerCam camera makes the instructor and presentation are the focus of your video conference. The flexible system allows end users to connect multiple peripherals such as DVD players, VCRs, document cameras, or projectors for added presentation impact. VSX 8400 with SoundStation VTX 1000 The world's first integrated wideband conference phone and video solution All the power of the VSX 8400 system, plus the best conference phone on the market today it doesn't get any better than this. Since the VSX series video conferencing systems and SoundStation VTX 1000 support wideband audio, point-to-point video and voice calls automatically go into wideband mode, providing crystal-clear voice quality. You'll think everybody is in the same room. VSX 8000 The ultimate in an easy-to-install, high-performance video conferencing system A sleek rack-mount design, professional grade connectivity, and versatile interoperability make this product the perfect choice for integrated and custom environments. Specially designed for professional integrators, the slim, highly integrated, 1U design includes balanced line-level input, integrated VGA input supporting People+Content collaboration, and versatile network modules. VSX 8000 with Vortex Integration Integrated rack-mount voice and video solution Put this unparalleled combination to work in conference suites, boardrooms, classrooms, or courtrooms, then step back and enjoy the compliments. Polycom voice and video systems provide an amazing communication experience with full room microphone and loudspeaker coverage, People+Content video conferencing, and user-friendly control. VSX 7800 Top-of-the-line in set-top video conferencing systems Here's how to get every essential component you need to start collaborating right away. A high-fidelity speaker kit enables patent-pending Polycom StereoSurround, so you'll hear every important word. Connect a second display (ideal for an XGA monitor), and utilize the People+Content feature for high-resolution content from a laptop. When consultation with a remote location is necessary, simply add multiple voice and video participants to the conference with the push of a button. Included with the VSX 7800 is the ability to hold a multipoint call with up 10 cascaded video conference participants. VSX 7400 Optimum collaboration capabilities in a set-top video conferencing system Capabilities include support for high-resolution People+Content, Web streaming for recording and viewing conferences at a later time, and closed captioning support for hearing impaired participants. The serial port allows you to connect Teletype or medical devices in hospitals or doctors' offices, as well as external control devices such as AMX or Crestron touch panes. This product is designed for applications that require limited space.

9 VSX 7400 with SoundStation VTX 1000 The world's first integrated wideband conference phone and video solution With the integration of the revolutionary SoundStation VTX 1000 and VSX 7400, you can replace your video system microphones with Polycom's award-winning SoundStation VTX 1000 conference phone. This unmatched solution provides a familiar user interface to easily initiate video calls, allows users to speak naturally up to 20 feet away from a microphone and still be heard clearly on the far end, and reduces cords and clutter to the conference table. VSX 7000 Video conferencing like you've never seen it This system gives you everything you need for video conferencing while enabling future growth and investment protection. Flexible and expandable, you can add displays, microphones, speakers, ISDN network modules, and more. This popular mainstream product offers the industry's best audio and video quality in a set-top configuration. It is also available with the Polycom Media Center, which offers a complete multimedia package for a truly extraordinary video conferencing experience. VSX 6000 A compact, entry-level set-top video conferencing system with built-in IP connectivity The VSX 6000 is the industry s only entry-level video conferencing system that offers superb quality audio fidelity with 14 khz audio, 360-degree voice pickup from the VSX microphone array, and Polycom 14kHz StereoSurround. The VSX 6000 is the only entry-level video conferencing product in the industry to offer audio error concealment and the capability to add voice-only participants with the integration of the SoundStation VTX 1000 conference phone. VSX 3000 The industry s first and only fully integrated video conferencing system that doubles as your PC display Imagine a high quality video conferencing system that eliminates monitor clutter in your office. It's now available with the Polycom VSX With its completely integrated display, camera, microphone and speakers, the VSX 3000 delivers TV-like video and near-cd quality audio in a sleek, compact system. The VSX 3000 also functions as a high quality SXGA display for your PC. Ideal for Executive offices, Doctor's offices or Education resource rooms, the VSX 3000 extends the conference room to the personal office environment. Polycom V500 Simple and affordable video calling solution makes it easy to talk face-to-face, anytime The V500 delivers natural, smooth motion video and crystal-clear audio in a convenient and compact design that's ready to plug into a standard NTSC or PAL display and any broadband connection. It's the right choice for employees in offices and small conference rooms who are ready to hold a face-to-face meeting over their high-speed broadband connection. Polycom PVX software Extends premier Polycom video conferencing experience to every desktop By employing enhanced collaboration features including high-resolution XGA content sharing and embedded AES security, the Polycom PVX software application delivers power and performance never before available in desktop video conferencing. Working with your PC and USB camera, the software is ideal for remote offices, work-from-home employees, traveling professionals, and remote health or education applications that demand the highest conferencing and collaboration performance.

10 Polycom VSX Advantages Polycom StereoSurround SoundStation VTX 1000 Phone Integration People+Content IP SIP Support Polycom's StereoSurround offers the benefits of 14kHz audio fidelity and stereo separation. Superwideband, 14kHz audio makes speech incredibly crisp and clear which eliminates audio fatigue in longer meetings. Only Polycom's StereoSurround delivers left and right positional audio for people in the conference, so you hear with the correct ear whether they are sitting next to you in the same room, or calling from the far side. And, when multiple conversations take place at the far side, StereoSurround allows you to distinctly separate the voices and process the conversations independently. Systems without StereoSurround merge all voices together in a single, noisy transmission rather than a natural conversation. Polycom's StereoSurround also delivers superwideband fidelity, in stereo, for VCR and DVD files that are being shared in the meeting. Polycom's StereoSurround makes video conferencing discussions natural and enjoyable and adds impact to rich media presentations. Video conversations in rich, crisp stereo. Only from Polycom. Integrating the SoundStation VTX 1000 phone with your VSX system adds a lot more than just a phone line to the call. With SoundStation VTX 1000 integration, you can improve the audio capture in your conference room. Conference participants can sit up to 20 feet away from the phone and still be heard as if they were sitting in the next chair. The SoundStation VTX 1000 dialing pad can also be used for dialing and launching video calls without the need to pick up the remote control. And, the SoundStation VTX 1000 can also capture 14kHz superwideband audio in StereoSurround. Would you like to eliminate microphones or microphone wires from your conference table? Would you like better room coverage and higher audio quality? Would you like the ease of dialing your video calls directly from the same phone as your regular voice conferences? Integrate the SoundStation VTX 1000 with your VSX and have it all! Only from Polycom. Sharing presentations in meetings happens every day. With Polycom's People+Content IP, you can now share high resolution (XGA) content in your video conferences without ever leaving your chair or lifting a cable. Since People+Content IP links to the VSX system through your wireless PC, you can share high resolution content in video conferences in a wireless fashion. Even presentations with motion and slide builds can be shared with People+Content IP. No time is wasted waiting for people to swap cables. Meeting interruptions are eliminated, and teams are more productive. Even remote participants who are calling into the video conference on their phone can share visual content with the full team from their PC's with People+Content IP. Only from Polycom. Session Initiation Protocol (SIP) is the underlying protocol that supports the future of rich media collaboration. Polycom delivered the first, end-to-end, fully integrated SIP conferencing and collaboration solution, and is committed to open standards solutions, not proprietary. SIP enables the integration of media (text, voice, video, data), devices (phones, laptops, PDA's, pagers), services (presence, mobility, preferences) and applications to deliver a single platform for rich media collaboration. Polycom has implemented SIP support in the VSX platform to allow early adopters and thought leaders to take full advantage of this emerging protocol. Be part of the future of rich media collaborations with VSX SIP support. Only from Polycom Polycom, Inc. All rights reserved. Polycom, the Polycom logo and Vortex are registered trademarks and VSX, Polycom PVX, People+Content, SoundStation VTX 1000, Polycom StereoSurround, PowerCam and the industrial design of the SoundStation are trademarks of Polycom, Inc. in the U.S. and various countries. All other trademarks are the property of their respective owners. Specifications are subject to change without notice. Polycom Headquarters: 4750 Willow Road, Pleasanton, CA (T) POLYCOM ( ) for North America only. For North America, Latin America and Caribbean (T) , (F) Polycom EMEA: 270 Bath Road, Slough, Berkshire SL1 4DX, (T) +44 (0) , (F) +44 (0) Polycom Asia Pacific: Polycom Hong Kong Ltd., Rm 1101 MassMutual Tower, 38 Gloucester Road, Wanchai, Hong Kong, (T) , (F) Part No Rev. 1/05

11 Polycom Desktop VoIP Products A full family of standards-based IP telephony Polycom offers a Voice over IP (VoIP) desktop solution that fits all your business communication needs. Designed to integrate with leading IP PBX and Softswitch vendors solutions, Polycom s VoIP phones attach to your data network, for only one network to manage. Polycom s Voice over IP endpoints blend traditional PBX features with unique IP features and functionality, providing an intuitive, familiar user interface. The high-quality, standards-based, full- featured endpoints enable effortless access to installed VoIP applications, and since they are software downloadable, your investment is protected as features and standards evolve. Enhanced productivity The SoundPoint IP family of phones offer one button access to common telephony features, and an information-rich display that delivers content for messaging, call information, directory access, and applications. Suitable for a variety of business uses, the SoundPoint IP family design is based on 15 years of market leading conference phone development and offers excellent voice quality when used in handset, headset or full-duplex speakerphone mode (one-way monitor speaker in the SoundPoint IP 300). This enhances the productivity of your calls because you can spend less time trying to hear what other people are saying, and more time communicating with them. Polycom offers the right VoIP solution for every business situation Polycom VoIP solutions give you a choice of models, protocols, and call management solutions. With the SoundPoint IP 300, SoundPoint IP 500, and the SoundPoint IP 600, and our Technology Partners solutions, Polycom customers receive a high quality, high performance IP communications experience. The Polycom SoundPoint IP 300 a highquality entry-level desktop business IP telephone. The Polycom SoundPoint IP 300 is a two-line desktop IP telephone that delivers remarkable value. Similar in sound quality and ease-of-use to the rest of the Polycom IP family, the SoundPoint IP 300 offers users an entry-level choice for their basic IP telephony needs. The Polycom SoundPoint IP 500 a flexible mid-level desktop business IP telephone. SoundPoint IP 500 is a three line desktop IP telephone suitable for everyday users needing more features than the SoundPoint IP 300 offers. It has a a full-duplex, hands-free speakerphone utilizing Polycom s Acoustic Clarity Technology, a large 160 x 80 pixel LCD, plus more dedicated hard keys and soft keys to access extended features and functionality. The VoIP choice for Polycom communication and collaboration solutions With integrated video, voice, data, and Web capabilities, Polycom offers the only solution that gives you an easy way to connect, conference, and collaborate any way you want. It's our commitment to making distance communications as natural and interactive as being there. Work faster, smarter, and better with the SoundPoint IP telephones and Polycom's integrated communication solutions. Highlights Proven Polycom is a leading independent supplier of standards-based award winning IP telephones Flexibility choice between handset, headset or full-duplex speakerphone mode and choice of protocols and Technology Partner solutions Easy-to-use dedicated feature keys and context-sensitive soft keys, and high resolution LCD displays Choice of powering options Support for AC power and Power over Ethernet (IEEE or Cisco standards) The Polycom SoundPoint IP 600 six-line convenience, unsurpassed hands-free voice quality and a high-resolution display. The award winning SoundPoint IP 600 is your best choice for a standards-based Voice over IP telephone. It is ideal for users requiring multiple lines, and it delivers both traditional telephone capabilities and new, converged applications to your business desktop. Connect. Any Way You Want.

12 Desktop VoIP Products Comparison SoundPoint IP 300 SoundPoint IP 500 SoundPoint IP line x 20 character 160 x 80 pixels, multilevel grayscale 320 x 160 pixels, multilevel graphical Entry Mid High Telephony features Line/Speed Dial keys Mute, Headset and Hands Free keys Context sensitive soft keys Display/Menu Navigation Keys Up to 2 Mute and Headset 3 2 Up to Up to Networking/Connectivity Dual 10/100 Mbps Switched Ethernet ports QoS support IEEE p/q, Layer 3 TOS Power options AC power Power over Ethernet (Cisco) Power over Ethernet (IEEE 802.3af) * * * * * * Built in Built in Built in Protocol support ITU H.323 Version 4.0 IETF MGCP v1.0 with NCS SIP (RFC 3261) SIP interoperability with Polycom MGC Feature Graphical display Performance Range Message alert indicator Audio features Handset operation Headset operation through independent jack Full-duplex hands free operation (Acoustic Clarity Technology) Voice Activity Detection Packet error correction Acoustic Echo Cancellation (Hands free only) Automatic Gain Control Background Noise Suppression Comfort Noise Fill Local 3 way conferencing Codec support: G.711 µ/a and G.729A (Annex B) Dynamic Jitter Buffers * With optional cable (IEEE: , Cisco: ) Now available! Our new SIP enabled Conference Phone - the SoundStation IP 4000! Please see for a list of SIP Technology Partners that have certified this product. Note: Polycom SoundPoint IP 300, SoundPoint IP 500, and SoundPoint IP 600 desktop phones are designed and tested for integration with the following VoIP Solution Providers: Technology Partner Interoperability* SoundPoint IP 300 SIP SoundPoint IP 300 MGCP SoundPoint IP 500 H.323 SoundPoint IP 500 SIP SoundPoint IP 500 MGCP SoundPoint IP 600 SIP SoundPoint IP 600 MGCP Polycom PathNavigator BroadSoft Vonexus/Interactive Intelligence Sphere Sylantro Vertical Networks VocalData * Some of these IP PBX and Softswitch solutions may be branded under third-party service providers Please visit for the most up-to-date list of partners Polycom, Inc. All rights reserved. Polycom, the Polycom logo, SoundPoint and SoundStation are registered trademarks and The Polycom Office, MGC and PathNavigator are trademarks of Polycom, Inc. in the U.S. and various countries. All other trademarks are the property of their respective owners. Specifications subject to change without notice. Polycom Headquarters: 4750 Willow Road, Pleasanton, CA (T) POLYCOM ( ) for North America only. For North America, Latin America and Caribbean (T) , (F) Polycom EMEA: 270 Bath Road, Slough, Berkshire SL1 4DX, (T) +44 (0) , (F) +44 (0) Polycom Asia Pacific: Polycom Hong Kong Ltd., Rm 1101 MassMutual Tower, 38 Gloucester Road, Wanchai, Hong Kong, (T) , (F) Part No Rev. 1/05

13 Polycom Voice Products The right solution for any business communication need Your conference room phone is one of your most valuable assets to help you collaborate with others. And regardless of the size of your conference room, calls are productive and efficient when participants on all points of the call can hear clear, crisp voice quality even during simultaneous conversations. With Polycom's patented Acoustic Clarity Technology, your conversations flow naturally and get everyone talking. The SoundStation VTX 1000 is the world's first conference phone that automatically adapts to each meeting environment, providing high fidelity voice clarity for all participants, whether they're two feet or 20 feet away from the microphone. And, as the world's first wideband conference phone, the SoundStation VTX 1000 delivers twice the bandwidth as conventional telephones for lifelike clarity. From desktop to large integrated auditorium systems, from analog to digital to IP networks with multiple protocols, or from wired to wireless, Polycom has the right voice solution to enhance any business communication need. Why waste time and money or even lose business due to poor phone technology when you could conference with confidence using a Polycom conference phone? The wireless SoundStation2W offers better voice quality than the original SoundStation with the freedom of wireless. Now you can conference anywhereteam collaboration is important - even in rooms where there are no phone lines - without sacrificing audio quality. Polycom - The Market Leader Worldwide Polycom has been the worldwide conference phone market leader since We redefined voice conferencing with the revolutionary SoundStation VTX 1000, moved conferencing outside the conference room with the wireless SoundStation2W, set a new standard for business-quality conferencing with the SoundStation2, and now offer a SIP enabled conference phone with the SoundStation IP The SoundStation2 sets a new standard in everyday conferencing for small to medium conference rooms. Delivering remarkable voice quality equal to the SoundStation Premier and a 50% increase in microphone sensitivity over the award-winning SoundStation, users can speak up to ten feet away in a normal voice and still be heard clearly - making every call a more productive call. The SoundStation IP 4000 SIP voice conferencing unit is the answer for organizations that are ready for the convenience and versatility of an IP enabled business. Designed for offices or small to medium sized confer- ence rooms, the SoundStation IP 4000 SIP allows users to speak naturally from up to ten feet away from a microphone and still be heard clearly on the far end of the call. Best-in-class conference phones. The power of Polycom conferencing and collaboration solutions. With integrated video, voice, data, and Web capabilities, Polycom offers the only solutions that offer any size business an easy way to connect, conference, and collaborate any way you want. It's our commitment to making distance communications as natural and interactive as being there. Work faster, smarter, and better with Polycom voice products and Polycom conferencing and collaboration solutions. For unsurpassed voice clarity, conferencing freedom and increased productivity in your conference rooms, offices or anywhere, there's only one clear choice: Polycom. To learn more about Polycom conference phones and Polycom conferencing and collaboration solutions, go to Connect. Any Way You Want.

14 Polycom Conference Phones Comparison Feature VoiceStation 100 SoundStation IP 4000 SoundStation2 SoundStation2W The smallest and most affordable multiperson conference phone. Ideal for offices or small conference rooms. SIP Conference phone for your IP enabled business. Perfect for offices or small to medium sized conference rooms. Wireless freedom to conference anywhere team collaboration is important even in rooms where there are no phone lines. The new standard for businessquality conferencing in small to medium rooms or executive offices. Acoustic Clarity Technology For simultaneous natural conversion the industry s best full duplex Network connectivity Analog network Digital PBX (Nortel Meridian, Avaya DEFINITY) IP Connectivity* - SIP Voice quality Automatic mic selection only one mic is on at a time to remove in the well sound Automatic Gain Control World s first wideband conference phone (7 khz) 2X the bandwidth of ordinary telephones (3 khz) for extra clarity Noise reduction automatically reduces noise from fans, projectors, PCs, and HVAC Other feature Upgrade your phone remotely with new software downloads Connect your phone with external system for greater room coverage 2.4GHz Wireless technology with 64-bit voice encryption Cell phone connectivity*** Adjust the bass and treble to your personal preference Graphical LCD and expanded user interface 2 external mics supported Supports Polycom Vortex installed room systems Integrates with Polycom VSX video conferencing systems Integrates with Polycom Global Management System * H.323 and 3Com NBX Connectivity with SoundStation IP Please see for a list of SIP Technology Partners that have certified the SoundStation IP 4000 product. ** Not all mobile phone models support the SoundStation2 and SoundStation2W mobile phone connector. Conferences using some mobile phone models may experience diminished audio quality or other functionality. For a list of mobile phones that are known towork well, please consult

15 Choose the conference phone to best meet your needs: SoundStation Premier SoundStation VTX D/550D Direct connect to Nortel and AVAYA Digital PBXs - no need for separate analog terminal adapters. The world s first automatically adapting conferencing system for lifelike sound in any size conference room or executive office. 1. Determine network connectivity requirements 2. Choose level of quality and functionality desired 3. Match the product to the correct room size 4. Go to or contact your local reseller for a demo and pricing Microphone coverage Up to 20 feet VoiceStation 100 Original SoundStation and SoundStation IP 3000 SoundStation2, SoundStation2W, SoundStation IP 4000 andsoundstation Premier SoundStation VTX 1000 Original SoundStation EX with mics SoundStation2 EX with Mics, SoundStation2W EX with Mics, SoundStation IP 4000 with Mics and SoundStation Premier EX with Mics SoundStation VTX 1000 with Mics

16 2005 Polycom, Inc. All rights reserved. Polycom, the Polycom logo design, SoundStation, SoundStation Vtx 1000 and SoundStation Premier are registered trademarks and VoiceStation, VSX, SoundStation2W, SoundStation2 and the industrial design of SoundStation are trademarks of Polycom, Inc. in the U.S. and various countries. All other trademarks are the property of their respective owners. Specifications are subject to change without notice. Polycom Headquarters: 4750 Willow Road, Pleasanton, CA (T) POLYCOM ( ) for North America only. For North America, Latin America and Caribbean (T) , (F) Polycom EMEA: 270 Bath Road, Slough, Berkshire SL1 4DX, (T) +44 (0) , (F) +44 (0) Polycom Asia Pacific: Polycom Hong Kong Ltd., Rm 1101 MassMutual Tower, 38 Gloucester Road, Wanchai, Hong Kong, (T) , (F) Part No Rev. 1/05

17 Polycom Multipoint Conferencing and Collaboration Connect... Communicate... Collaborate... via video, voice, data and Web... at any time from anywhere! Whether you're a start-up, non-profit organization, or one of the world's largest enterprises, communication and collaboration are the keys to success. To facilitate this essential process, Polycom offers Unified Collaborative Conferencing (UCC) converged voice, video, data and Web solutions for organizations looking to offer enhanced communication services over their existing corporate network. Our high quality, rich media conferencing and collaboration applications are easy to deploy, manage, and use, empowering organizations to significantly enhance their day-to-day business communications. From executives to managers, everyone in today's dispersed organizations are challenged to do more with less. Polycom UCC solutions facilitate an increase in the transfer of information and knowledge across the company, resulting in improved relationships, faster and better decision making, and ultimately increased productivity. Polycom's family of conferencing infrastructure products enable you to access the power of Polycom unified collaborative communications. With the greatest breadth and depth of integrated video, voice, data and Web solutions, Polycom delivers the ultimate communications experience. Our market-leading conferencing and collaboration products, supported by world-class service, enable people and organizations to maximize their effectiveness and productivity. Add to that the most experience and demonstrated best practices in the industry, and it's clear why Polycom has become the smart choice for organizations seeking a strategic advantage in a real-time world. A complete end-to-end conferencing solution, from conferencing network infrastructure to enhanced applications right through to endpoints Multiple different types of conferencing applications are offered, including both on-demand and scheduled, over any type of network Advanced conference scheduling and device management is available on a single device, accessible from a single web-based interface, for simplified conference deployment and management Premier desktop Web collaboration solutions offer high quality video conferencing and content sharing, along with IM and presence capabilities Integration with third-party products, such as Microsoft Live Communication Server, Avaya Communication Server, Nortel Multimedia Communication Server, and Cisco Call Manager, offers the utmost in network flexibility The future is here with real-time rich media conferencing and collaboration, and Polycom is making it easier than ever. UCC is already changing the way people work, enabling them to make faster decisions by accessing knowledge across the extended enterprise in real time. Polycom offers a solution set that leverages existing technology investments, while building a scalable platform for the future that can adapt and grow as your infrastructure evolves. For enterprises looking to increase employee productivity and reduce travel expenses, multipoint conferencing and collaboration services that are easy to access from any type of endpoint - from anywhere at anytime - offer the ultimate communication solution. With Polycom's suite of on-demand applications, users become empowered to access people, data and conferencing services in real-time, enabling spontaneous collaboration with colleagues when, where and how the user dictates. From virtual conference rooms - easily accessible through a single dial in number to entry queue services which guide participants through meeting set up, Polycom can enable organizations to deploy self service conferencing, significantly increasing employee productivity and reducing IT administrative overhead. Polycom makes it easier than ever to collaborate with others, whether they're across the hall or around the globe. When it comes to bringing people together, Polycom leads the way. Connect. Any Way You Want.

18 Polycom Network Conferencing Family of Products Unified Conferencing Any Application, Any Endpoint Device, Any Network Today, you're surrounded by an ever-increasing number of complex systems, each with its own set of user interfaces and commands. Polycom simplifies the conferencing experience by providing a platform that was designed from the outset to deliver a full range of multimedia services over disparate networks. This enables you to experience consistent, repeatable, easy-to-use conference features, regardless of endpoint device or whether your connection is via audio or video over PSTN, ISDN or IP (H.323 or SIP) networks. Polycom was the first to offer full-featured voice, video, and Web conferencing on a single platform. Our vision of Unified Collaborative Communications (UCC) is a reality with the MGC Unified Conferencing Bridge, Polycom PathNavigator Advanced Gatekeeper, powerful ReadiManager LX100 scheduling and management system, and fully integrated end-user applications such as Polycom WebOffice - that bring video conferencing and web collaboration right to the desktop. MGC Platforms: Conferencing Intelligence That Empowers Any Application Over Any Network The Polycom MGC is the only solution on the market today that delivers complete unified conferencing flexibility - including the support of both on-demand and reserved conferencing - concurrently on a single platform. Our three MGC conferencing bridge platforms - MGC-25, MGC-50, and MGC deliver reliable and secure multipoint audio, video, data, and unified conferencing over any network connection. These systems support any mix of endpoint devices in multiple enterprise configurations, letting you decide which applications and services you wish to deploy, all supported by the latest quality and performance standards. From legacy PSTN/ISDN to IP to emerging, enhanced SIP-based applications, the MGC platform helps you migrate to new technologies and applications on your own timeline - without purchasing a new platform. Audio Conferencing Market-Leading Audio Conferencing Solutions to Meet Any Need From enterprises to service providers, domestic or international Polycom has the right audio conferencing solution to power your business. Our solutions are highly scalable, feature-rich, and reliable. They're all designed to deliver the performance you demand today, with the ability to grow with emerging requirements so you can add capacity and features. Polycom VoicePlus: Remarkable flexibility, scalability, and performance For enterprises and service providers, Polycom VoicePlus delivers on-demand, scheduled, and operator-assisted audio conferencing, as well as fully integrated Web conferencing through Polycom WebOffice. Support for PSTN, IP, and mixed PSTN/IP conferences enables IP and ISDN video conferencing on an existing MGC. All of this capability combined with rich features and a firewall-friendly design adds up to a value proposition that we believe competing systems simply can't match. ReadiVoice : #1 choice for high-volume service providers and carriers If you're looking for the most reliable, scalable, and easy-to-use "reservation-less" solution available for PSTN or SIP networks, ReadiVoice is it. That's because it gives subscribers the simplicity and always-available conferencing access that they demand, with the ability to instantly launch and control conferences at their convenience using touch-tones or an intuitive, Web moderator interface. No reservations to make. No time limits. It's no surprise that Polycom ReadiVoice is the world's most widely deployed, totally ondemand audio conferencing system.

19 Web Conferencing Polycom WebOffice: Conduct online meetings anytime, anywhere Polycom WebOffice is a simple-to-use virtual office where participants can meet, collaborate, and share information, applications, and documents in a secure interactive environment. Hold online meetings via a personal URL and buddy list. And, it easily integrates with your company's audio and video conferencing infrastructure to deliver a complete conferencing experience, wherever you are located. Access Polycom's WebOffice conferencing portal from work, home, while traveling anywhere you can access the Internet. It's designed to give office workers, executives, educators, and medical professionals instant access to the collaboration (presentations, document sharing, white-boarding and application sharing), video and voice communications they need including Instant Messaging, group chat, voting/polling, and other tools. Management and Scheduling Making Unified Collaborative Communications (UCC) More Manageable As you increase your dependence on UCC, you must also maintain the systems and measure and track their usage. Polycom offers a wide range of management applications for this purpose, so you can purchase just the software you need. Polycom ReadiManager LX100: Simplified video/audio conference scheduling and device management Connect this appliance directly to your enterprise network and enjoy simplified video/audio conference scheduling and device management. Right from your desktop, you can schedule conferences through an intelligent wizard that automatically prompts you to enter required conference information resulting in faster, easier scheduling and virtually eliminating the need for training. Polycom Conference Suite : Web-based tool for conference scheduling Managed through a Web interface, this tool is comprised of the Network Aware Scheduler for end users, and Video Network Management tool for IT professionals. The Network Aware Scheduler makes it easy to schedule conferences by enabling you to invite guests, book rooms, and select necessary equipment, all from within Microsoft Outlook, IBM Lotus Notes, or through a Web interface. The Polycom Video Network Management enables IT professionals to proactively track and adjust the network as needed from any location. Polycom PathNavigator: Advanced routing and deployment gatekeeper For H.320 and H.323 environments, Polycom PathNavigator enables video network administrators to control video conferencing networks from any Web browser, supporting a combination of video conferencing standards as well as a wide range of video devices, MCUs, gateways, and other networking equipment. With support for intelligent call routing, plus easy system deployment, Polycom PathNavigator ensures reliability, security, and effective cost control. Polycom Device Management : In-depth management and monitoring The Polycom Global Management System is an intelligent, Web-based management software solution for IT professionals who need to manage Polycom network devices within an enterprise-wide video and audio communications network. Designed for network administrators, Polycom's MGC Manager is a Windows-based management and scheduling application that allows professionals to manage multiple video MCUs, gateways, and audio bridges. Polycom's WebCommander is an end-user, intuitive, Web-based interface for scheduling, monitoring, and managing video and audio conferences on the Polycom MGC. The ZyrOSS Data Collector, developed by Insight Systems, Inc., interprets CDR information from Polycom's audio and video bridges and gateways. Polycom WebCommander : Cost-effective Scheduler Polycom's WebCommander is for advanced end-users, with an intuitive web-based interface for scheduling, monitoring managing audio and video conferences on the Polycom MGC. WebCommander empowers users to control all aspects of managing conferences, including features such as real-time conference control, on-demand and scheduled conference initiation, and a personal schedule module that integrates with Microsoft Outlook.

20 2005 Polycom, Inc. All rights reserved. Polycom, the Polycom logo, Polycom WebOffice and ReadiVoice are registered trademarks and MGC, Polycom PathNavigator, ReadiManager, WebCommander, Polycom Conference Suite and Global Management System are trademarks of Polycom, Inc. in the U.S. and various countries. All other trademarks are the property of their respective owners. Specifications are subject to change without notice. Polycom Headquarters: 4750 Willow Road, Pleasanton, CA (T) POLYCOM ( ) for North America only. For North America, Latin America and Caribbean (T) , (F) Polycom EMEA: 270 Bath Road, Slough, Berkshire SL1 4DX, (T) +44 (0) , (F) +44 (0) Polycom Asia Pacific: Polycom Hong Kong Ltd., Rm 1101 MassMutual Tower, 38 Gloucester Road, Wanchai, Hong Kong, (T) , (F) Part No Rev. 4/05