For the three months ended March 31, 2005, gross
margin was 70% compared to 61% for the three months ended December 31,
2004 and 45% for the three months ended March 31, 2004.
His inventions not only helped revolutionize the workplace but also
ultimately unlocked the basic workings of the process used in products
that turn out millions of color and black-and-white copies and prints
in homes, offices and print shops around the world. In addition to Gundlach,
its class of 2005 includes Matthias Baldwin , inventor of the steam
locomotive; Clarence Birdseye, inventor of frozen foods; Dean Kamen,
inventor of the AutoSyringe; Garrett Morgan, inventor of the gas mask
and traffic signal; and Les Paul, inventor of the solid-body electric
guitar.

thermodynamics ouden

4 million for the three months ended
March 31, 2004.S.

inventions cathode

As of March 31, 2005, Avistar had cash and cash equivalents of
$20.xerox. Crystals Available for a Limited Time to Help UNICEF Raise Funds for
Children Worldwide

NEW YORK, This past November, acclaimed lighting
designer Ingo Maurer and Baccarat, the 240 year-old French-based luxury goods
company whose name is synonymous with the world's premier hand crafted luxury
crystal, unveiled their latest creation, the UNICEF Crystal Snowflake -- a
16-foot outdoor chandelier that sparkles with thousands of glittering Baccarat
crystals.S.
"Ideally ," says Mr.

typewriter geissler

1 million, or $0.07)
=========== ==========
Weighted average shares used in calculating
basic and diluted net loss per share 33 ,420 30,450
=========== ==========

AVISTAR COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
as of March 31, 2005 and December 31, 2004
(in thousands, except share and per share data)

March 31 , Dec.
Among Gundlach's inventions are the "development electrode," which
made it possible to copy solid areas; a method of cleaning the imaging
drum that enabled Xerox for the first time to make plain-paper copiers
that could fit on a desktop; and "tri-level highlight color," which
was the basis for products that can copy both black and another color
simultaneously.fr

About Ingo Maurer
Ingo Maurer founded his own lighting company in 1965.

evicted crookes

Collaboration Properties , Inc. He remains Xerox's most
prolific inventor. This magnificent creation, which graces the intersection of Fifth
Avenue and 57th Street in Manhattan, was lit by actress and UNICEF Ambassador
Sarah Jessica Parker on November 18 during a special outdoor ceremony open to
the general public. Fund for UNICEF Special
Advisor to the President, with engraved crystals, officially making them the
first six participants of the Crystal Donor campaign. Baccarat is available in the U.

telegraphy omitted

Avistar reported a net loss of $0. Our settlement and cross-licensing
arrangement, which was concluded in November of last year with
Polycom, Inc. Another notable development
during the first quarter of this year relating to the expansion of our
business model was our announcement of a partnering arrangement with
IBM , through which we intend to integrate our video functionality with
IBM's Workplace Client Technology .

Business Editors/High-Tech Writers

AKRON, Ohio----Anyone who's made
copies of a favorite recipe, a choice article, a Little League roster
or a pile of receipts has Robert W.com/news. Luis , "in the not-so-distant future, major cities the
world-over will have their own UNICEF Snowflake shining bright during the
holidays forever bonding them in a shared mission to brighten the world for
children everywhere.

telegraphy westinghouse

About Avistar Communications Corporation

Avistar Communications Corporation develops, markets and supports
a video collaboration platform for the enterprise, all powered by the
AvistarVOS(TM) software. CPI offers this intellectual property by licensing its
patent portfolio and Avistar's video-enabling technologies to
companies in the video conferencing, rich -media services,
public-networking, and related industries.avistar. UNICEF's lifesaving programs include immunization, health
care, HIV/AIDS prevention, nutrition, clean water and sanitation, emergency
relief, child protection, and education. Lyons, president of the
U.

idealized thinkquest

Avistar's
technology is used in more than 35 countries.
With this campaign, Baccarat and UNICEF are giving donors the opportunity
to have their names forever engraved in this New York landmark while helping
children in need around the world.unicefusa. To
make a donation or learn more about UNICEF please call 1 -800-4UNICEF or go to
HTTP://www.

typewriter timekeeping

"
Over his lifetime, Gundlach has received 164 U. In addition , the donor will receive an exact replica of the engraved
crystal to keep as a memento along with a certificate of authenticity signed
and stamped by Baccarat. "Baccarat's support is a perfect example of how
corporate sponsors can use their resources to work for the good of children.

thinkquest idealized

01 per basic
and diluted share, for the three months ended March 31, 2005. Avistar video-enables business processes by integrating
visual communications into the daily workflow and connecting
communities of users within and across enterprises. at
leading department stores and fine specialty and jewelry stores as well as at
the company's 12 freestanding boutiques in New York, Houston, Dallas, Hawaii ,
Troy, San Francisco, Aspen, Palm Desert, Greenwich, Chicago, Las Vegas and
Costa Mesa.

westinghouse weekdays

3 million for the three months
ended December 31, 2004 and $1.
"The first quarter of 2005 evidenced good progress for Avistar as
we pursue our expanded business model," stated Gerald J.com

Forward Looking Statements

Statements made in this news release that are not purely
historical, including but not limited to statements regarding the
impact of our patent portfolio and the Polycom settlement on future
partnering activities, the future of our relationship with IBM and our
prospects for achieving quarterly break-even results, are
forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act. For more information on the National Inventors Hall of Fame,
visit www.
"Baccarat has generously presented us with a very special opportunity that
allows our supporters to create a permanent tribute in honor of their loved
ones while helping children in need," said Charles J. Fund for UNICEF.

ingenuity experimented

Avistar Communications Reports Financial Results for the First Quarter of 2005

Burnett continued, "The technology that backs up our product
has been developed over more than a ten year period and, in many
areas, is patent-protected.

For more information , visit www. patents, with
155 of those earned for his work at Xerox.
A gentle optimist who loves solving puzzles and understanding how
things work, Gundlach continues to invent from his home near
Rochester, N.

Baccarat Gives Americans the Opportunity to Engrave Their Names in the World's Largest Outdoor Chandelier of Its Kind

The campaign was introduced last November during the first Annual UNICEF
Snowflake Ball by Mr.

This category covers general sites for the history of engineering and technology.

djvu geissler

0
million, compared to revenue of $2. Also related to the successful
conclusion of our litigation with Polycom, was the large reduction in
operating expense and cash burn during the first quarter, moving us
within one half million dollars of quarterly profit break-even," said
Robert J. Avistar disclaims any
intent or obligation to update these forward-looking statements . All rights
reserved. Most recently he has been working on a highly
efficient heat pump that he believes can help alleviate global
warming. The patented heat pump is designed for heating and cooling
city homes on small lots using a fraction of the energy now required.invent. UNICEF is non-partisan and its
cooperation is free of discrimination.

About Baccarat
Founded in 1764, with new headquarters in Paris designed by Philippe
Starck and manufacturing in the small village of Baccarat, France, Baccarat is
recognized globally as the eminent creator of luxury crystal, with a diverse
product assortment that in addition to traditional crystal giftware now
includes jewelry , watches and handbags. http://www." For
almost 40 years, he has surprised the world with technical inventions and
unusual designs, many of them in museums' collections.

aqueducts thinkquest

06 per basic and diluted
share , for the three months ended December 31, 2004 and $2. "In the past, Avistar
was exclusively a direct seller of an outstanding video collaboration
product to the financial services industry, but with goals of
developing licensing and partnering business channels as well. (CPI), a wholly owned subsidiary of
Avistar, holds a current portfolio of 66 patents for inventions in the
primary areas of video and network technology.
Gundlach, 78, is among six living inventors cited by the Hall of
Fame for accomplishments "that have bettered our quality of life and
allowed us greater convenience and safety. It would be seven more years before the
first product would come to market. XEROX(R) is a
trademark of XEROX CORPORATION.

typewriter aqueducts

Avistar
reported a net loss of $2. Those
goals are now taking shape in a tangible way."
Dr. Habig, Chief Financial Officer of Avistar.

Copyright (C) 2005 Avistar Communications Corporation.001 par value;
250,000,000 shares authorized at March 31,
2005 and December 31, 2004; 34,632,340
and 34,542,334 shares issued at
March 31, 2005 and December 31, 2004,
respectively 35 35
Less: treasury common stock, 1,181,625 at
March 31, 2005 and December 31,
2004, respectively, at cost (53) (53)
Additional paid-in-capital 90,077 90,005
Accumulated deficit (89,860) (89,473)
----------- --------
Total stockholders' equity 199 514
----------- --------
Total liabilities and stockholders' equity $22,856 $24,211
=========== ========

AVISTAR COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
for the three months ended March 31, 2005 and 2004
(in thousands)

Three Months Ended
March 31, March 31,
2005 2004
-------- --------
(unaudited)
Cash Flows from Operating Activities:
Net loss $(387) $(2,088 )
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation 36 68
Compensation on options issued to consultants 2 6
Provision for doubtful accounts 42 -
Changes in assets and liabilities:
Accounts receivable 128 (38)
Inventories 3 55
Prepaid expenses and other current assets 23 21
Other assets (2) -
Accounts payable (559) 195
Deferred license revenue (1,057) -
Deferred services revenue and customer
deposits 867 476
Accrued liabilities and other (291) (222)
-------- --------
Net cash used in operating activities (1 ,195) (1,527)
-------- --------

Cash Flows from Investing Activities:
Purchase of property and equipment (77) (92)
-------- --------
Net cash used in investing activities (77) (92)
-------- --------

Cash Flows from Financing Activities:
Proceeds from issuance of common stock 70 3,662
-------- --------
Net cash provided by financing activities 70 3,662
-------- --------
Net increase (decrease) in cash and cash
equivalents (1,202) 2,043
Cash and cash equivalents, beginning of year 21,656 5,438
-------- --------
Cash and cash equivalents, end of year $20,454 $7,481
======== ========

Supplemental Cash Flow Information:
Cash paid for income taxes $315 $14
Cash paid for interest $- $-

The not-for-profit National Inventors Hall of Fame is dedicated to
honoring and fostering creativity and invention.
Fund for UNICEF President and Diane Whitty, U.

westinghouse timekeeping

07 per basic and diluted share, for the three months ended March
31 , 2004., produced a full quarter of new licensing revenue during
the first quarter of 2005, attributable to the patents held by our
wholly-owned subsidiary, Collaboration Properties, Inc.1 million. Avistar , AvistarVOS, and the Avistar logo are trademarks or
registered trademarks of Avistar Communications Corporation." The Hall of Fame is giving
posthumous recognition to eight additional inventors.
In its continued efforts to assist UNICEF in raising funds for the world's
most vulnerable children , Baccarat has joined UNICEF in launching the UNICEF
Snowflake Crystal Donor campaign, in which for a minimum donation of $500,
individuals and corporations will be able to own and personalize one of the
crystals that make up this glittering symbol of hope for children around the
world.org /crystal

About UNICEF
Founded in 1946, UNICEF helps save, protect and improve the lives of
children around the world through immunization, education, health care,
nutrition, clean water , and sanitation.org.

weekdays soroban

Revenue for the three months ended March 31, 2005 was $3.5 million and no debt ."
"As Jerry discussed, our improved results for the first three
months of 2005 reflect our first full quarter of licensing revenue,
which amounted to $1. His inventions included many of the technologies
that enabled xerographic products such as copiers and printers to
become so wildly successful .org

NOTE TO EDITORS: For more information on Xerox, visit
www. Luis, who presented Pamela Fiori, Editor-in-Chief of
Town + Country, Lou Leone, General Manager of WCBS, George Stonbely, Stonbely
Family Foundation, Ingo Maurer, Snowflake designer, Charles J.S. In everything it does, the most
disadvantaged children and the countries in greatest need have priority.unicefusa. He is often referred to as "The Poet of Light.

1538 inventions

1 million,
or $0. From the desktop, Avistar delivers TV-quality
video calling, recording, publishing to web and emails,
video-on-demand, broadcast origination and distribution , and document
sharing. Such statements are subject to risks and
uncertainties that could cause actual results to differ materially,
including such factors, among others, as market acceptance of
Avistar's products and its intellectual property, increased
competition in the market for video collaboration products, technical
limitations on the development and application of our products and
challenges associated with protecting our intellectual property. As a
result of these and other factors, Avistar expects to experience
significant fluctuations in revenue and operating results , and there
can be no assurance that Avistar will become or remain profitable in
the future, or that its future results will meet expectations. Gundlach to thank.S."

For more information on the Crystal Donor program please visit our website
at http://www.

aqueducts typewriter

Business Editors

REDWOOD SHORES, Calif.----Avistar
Communications Corporation (NASDAQ:AVSR), a video collaboration
platform provider, today announced financial results for the three
months ended March 31, 2005 .

typewriter ouden

Founded in 1993,
Avistar Communications Corporation is headquartered in Redwood Shores,
California , with sales offices in New York and London. CPI pursues patents for
presence-based interactions, desktop video, recorded and live media at
the desktop, multimedia documents, data sharing, and a rich-service
network video architecture to support Avistar's product suite and
customers.

AVISTAR COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
for the three months ended March 31, 2005 and 2004
(in thousands , except per share data)

Three Months Ended
-----------------------
March 31, March 31,
2005 2004
----------- ----------
(unaudited)
Revenue:
Product $1,127 $562
Licensing 1,057 -
Services, maintenance and support 795 842
----------- ----------
Total revenue 2,979 1,404
----------- ----------
Cost of revenue:
Product 450 292
Services, maintenance and support 447 482
------- ---- ----------
Total cost of revenue 897 774
----------- ----------
Gross margin 2,082 630
----------- -------- --
Operating Expenses:
Research and development 641 624
Sales and marketing 698 608
General and administrative 1,273 1,505
----------- ----------
Total operating expenses 2,612 2,737
----------- ----------
Loss from operations (530) (2,107)
----------- ----------
Other income:
Interest income 148 13
Other income (expense ), net (5) 6
------- ---- ----------
Total other income, net 143 19
----------- ----------
Net loss $(387) $(2,088)
=========== ==========

Net loss per share - basic and diluted $(0. "Through Gundlach's work, photocopying became a practical
reality.

experimented evicted

We are hopeful
that this patent portfolio will facilitate and reinforce partnering
activities in the future, as well as generate additional licensing
revenue beyond the Polycom agreement.

Xerox Scientist Inducted Into National Inventors Hall Of Fame For Revolutionizing The Workplace With Modern Photocopier

Y. Chester Carlson was
previously inducted into the Hall of Fame."
Baccarat's goal is to extend the Crystal Donor campaign to other cities
around the world potentially making this fundraising effort the largest ever
in UNICEF's nearly sixty-year history .

For history of specific technologies, see under that specific heading.

westinghouse successors

We are looking forward to a
productive relationship with IBM, a global technology leader. These
and other risk factors are discussed in Avistar's Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities
and Exchange Commission from time to time.01) $(0. 31,
2005 2004
-- --------- --------
(unaudited)
Assets:
Current assets:
Cash and cash equivalents $20,454 $21,656
Accounts receivable, net of allowance for
doubtful accounts of $55 and $22 at
March 31, 2005 and December 31, 2004,
respectively 701 886
Inventories, including inventory shipped to
customers' sites, not yet installed
of $26 and $34 at March 31, 2005 and
December 31, 2004, respectively 734 737
Prepaid expenses and other current assets 446 454
----------- --------
Total current assets 22,335 23,733
Property and equipment, net 233 192
Other assets 288 286
----------- --------
Total assets $22,856 $24,211
=========== ========

Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable 546 1,105
Deferred license revenue 4,226 4,226
Deferred services revenue and customer
deposits 1,615 748
Accrued liabilities and other 996 1,287
----------- --------
Total current liabilities 7,383 7,366
Long-term liabilities:
Long-term deferred license revenue 15,274 16,331
----------- --------
Total liabilities 22,657 23,697
----------- --------
Stockholders' equity:
Common stock, $0.
"As one of the first research scientists hired by the Haloid
Company , now known as Xerox Corporation, Gundlach was responsible for
finding ways to refine and improve xerography," according to the Hall
of Fame.
Gundlach joined the Haloid Company in 1952, about five years after
the company had purchased the rights to commercialize xerography,
Chester Carlson 's invention.

1538 geissler

Lyons, U.

aqueducts omitted

baccarat. His first design
was the "Bulb" in 1966.

aqueducts 1538

4 million, or $0. Burnett,
Chairman and Chief Executive Officer of Avistar. The benefit to operating margin was
dramatic, and this revenue stream will provide increased visibility
for our go-forward revenue and margin.
Gundlach, who retired from Xerox Corporation (NYSE: XRX) in 1995,
will be inducted into the National Inventors Hall of Fame here on
Saturday for his inventions that resulted in the modern photocopier. Proceeds from the sale of the crystals
will benefit UNICEF, the world's leading children's organization, which works
in 157 countries.S. He works with a team of
engineers and designers. Since 1999, he has had his own shop/showroom in New
York.