AltiGen Communications, Inc.

Nasdaq: ATGN

Jerry Fleming KBRO 10th Annual Investor Conference

September 6, 2007

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Safe Harbor

This presentation may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements regarding the continued market acceptance of our Voice over IP telephone systems, our continued success stemming from the introduction of the MAX 1000 VoIP phone system, our ability to enhance our customer experience with the goal of capturing multi-site deployments, our successful execution of our growth plan, including the continued addition of new resellers along with the implementation of our software assurance and hardware warranty programs. These statements reflect management's current expectation. However, actual results could differ materially as a result of unknown risks and uncertainties, including but not limited to, risks related to AltiGen's limited operating history. For a more detailed description of these and other risks and uncertainties affecting AltiGen's performance, please refer to AltiGen's Annual Report on Form 10-K for the fiscal year ended September 30, 2006 and all subsequent current reports on Form 8-K and quarterly reports on Form 10-Q. All forward-looking statements in this presentation are based on information available to AltiGen as of the date hereof and AltiGen assumes no obligation to update these forward-looking statements.

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Delivering Unified Communications

A leading provider of

Microsoft-based Unified Communications

for SMBs with a focus on multi-location organizations

• Offering integrated VoIP communications solutions

• Based on Session Initiation Protocol (SIP) standard, which enables text, voicemail, IM, etc.

• Single server for complete IP applications suite

• Delivering feature rich, easy-to-install, open-architecture, scalable systems at affordable prices

• Creating the “big company” appearance for SMBs

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Building on a Solid Foundation

• Dozens of Product Awards• Field-tested Proven Product for 10+ Years • 10,000+ Systems Installed• 7,500+ Customers in 20+ Countries • Distribution model: Internal sales supporting

200+ value added resellers

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Investment Rationale

• Market trends are increasing the opportunities– Growing adoption of VoIP– Introduction of unified communications– Large mobile work force

• Scalable, integrated application platform well positioned to meet SMB market demand, particularly suited to multi-location SMBs

• New management leading turnaround through Four-Point Growth Plan

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High Growth Opportunities

40%

53%60%

65%69%

2006 2007 2008 2009 2010

Percent of US SMBs Adopting IP PBX

Source: InfoTrack April, 2007

$1.8 $2.4$3.3

$4.9

$7.6

$11.4

$15.1

2001 2002 2003 2004 2005 2006 2007

• Average 18% growth annually in US• Voice & data IP niche to reach $8 billion by 2010• 23% CAGR for global IP telephone equipment

Worldwide IP Telephone Equipment RevenuesSource: International Data Corporation (IDC), January 2003

$ in billions

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Flexible Workforce Creates Needs

63%

20%

40%

20%

11%

Work nearly 100% of time in MainOffice

Work nearly 100% of time inBranch Office

Full Time Teleworker /Telecommuter

Part Time Teleworker /Telecommuter

Mobile Worker (More than 75% oftime spent on road)

Source: Gartner (June 2007)

Types of Workers in Typical SMB

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Huge Planned Adoption of UC

45%

38%

30%

16%

10%

7%

7%

46%

55%

60%

64%

66%

75%

75%

Instant Messaging

Audio Conference

Mobile Applications

Presence Management

Video and Collaboration

Unified Communications Client

Unified Messaging

Source: Gartner (June 2007)

UC Applications in Use & Planned Use in Next 3 Years

In Use Plan to Use

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Scalable, Flexible Multi-Site SMB Solution

• Automated, multi-site synchronization • Integrated, distributed IP applications • Centralized or decentralized management• Local and remote administration• Full remote survivability in the event of WAN outage

Supports 3400 extensionsin 100 locations

Supports up to 3400 extensionsin 100 locations

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Integrated Single-Server Solution

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Competitive Advantage

AltiGen Peers

Low-cost, single server architecture Expensive, multi-server

architecture

Complete integrated applicationsDisparate applications

combining 3rd party solutions

Easy multi-site deploymentSignificant cost and complexity for

more than one locations

Simplified management and administration

Multiple complex interfaces to manage applications

Installation in hours Installation in days

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AltiGen Delivers Efficiencies

AltiGen software enables better workflow solutions for customers that increase return on investment

• Reduces employee time per call• Increases customers served • Increases sales volume• Reduces customer wait time• Enables selective, modular licensing of features

per location for cost effective operations

Solutions Provided Worldwide

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Management Driving Growth

Four-Point Growth Plan

1. Expand distribution channel

2. Introduce new revenue sources

3. Implement improved, targeted marketing and build company brand

4. Enhance product functionality and scalability

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Expand Distribution Channel

• Leverage and extend committed reseller base– Aim to grow to 300 US VAR’s by March 2008

• Build up channel sales organization – Field support for expanded channel

• Establish new strategic accounts program– Direct sales to larger, multi-site organizations

• Increase international presence– Initial focus: UK and northern Europe via master distributor

• Improve training and sales tools– Ongoing web & field training

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Introduce New Revenue Sources

• Launch AltiGen's first-ever maintenance programs– Software assurance and hardware warranty include product

support, new releases, depot repair – Mandatory year one, optional thereafter– September 2007 roll out– Provides customers with an “ever improving” system– Creates recurring revenue stream

• Bring additional products to market– Complementary 3rd party products– AltiGen point solutions– OEM “add-on” software applications

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• Goals– Revive brand, improve product image, and increase lead

generation

• New, Focused Messaging for Targeted Segments – Launch new web site and marketing collateral– Build presence at key industry events– Expand print and online advertising– Initiate Email and webinar prospecting campaigns– Increase and optimize Google search capabilities

• Established new e-marketing initiative

Enhanced Marketing Direction

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Addressing Specific Markets and Needs

Size (Employees)

Number of SMBs

Positioning/Messaging

Needs/Concerns

5-354 Million

“High Volume,Low Touch”

-Price-Limited Functionality-Simplicity, Support

36-100 650,000“Increase the

Reach”

-Price-Small IT Staff-More than basic

101-500 400,000 “Move up Stream”-Internal IT Staff-Multiple Locations-Multiple Applications

501-1000+25,000

“Strategic Accounts”

-Dedicated IT Staff-Distributed Workforce-Require Complete Suite

AltiGen Systems Sold Per Quarter

150

200

250

300

350

400

450

Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07

Total System Sold Moving Avg.

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Strategic Product Enhancements

• Presence management– Real time virtual organization view– Click to communicate capabilities

• Client enhancements– Drag and drop functions (e.g., Conference, transfer)– Company, department and personal directories

• Unified communications enhancements– New windows, outlook and win/mobile telephony clients – Microsoft exchange 2007 & OCS 2007 integration

• Performance enhancements– Implement host media processing– Further increase multi-site scalability & redundancy

Microsoft’s UC Overview

Complete Communications Tools

• VoIP Telephone Service

• E-mail

• Audio and video conferencing

• Voice mail

• Presence and contact information

• Fax

• Instant messaging

• Calendars

AltiGen’s Integrated IP Applications Suite

Leveraging Microsoft’s New Exchange Server 2007 Initiative

Available 2Q08

Integrates with Microsoft’s UC

Available 2008

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Long-term Strategic Opportunities

• Technology Alliances – Extend market reach– Elevate company image– Access to large, new channels– Adds credibility to AltiGen

• Acquisitions, opportunistic only– Broaden high growth market opportunities– Expand “upgradeable” customer base– Enhance product portfolio with proven point solutions

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Financial Highlights

• Q307 revenue reached $4.2M, up sequentially • Very encouraged by the 5.1 release reception • Q307 gross margin of 53%

• At June 30, 2007, $10.1M in cash and short-term investments, up from March 31, 2007 of $9.8M

• No debt • As of August 9, 2007, 15.6M shares outstanding

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Experienced Management Team

• Gilbert Hu, Chairman and CEO, Founder – Also founded Centrum Communications

• Jerry Fleming, President and COO– Interactive Intelligence, Vonexus

• Phil McDermott, CFO– 3Com, David Systems, Prentice, Northern Telecom

• Mike Plumer, VP of Sales– Joined AltiGen in 1996, assumed increasing responsibilities

• Simon Chouldjian, VP of Hardware Engineering– Luxcom, Hewlett-Packard, TRW

• Shirley Sun, VP of Research and Development – 3Com, cofounder of Centrum Communications, Novell, Vitalink

Communications

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Summary

• Large unified communications market opportunity• Introduced Four-Point Growth Plan

1. Expand the distribution channel

2. Introduce new revenue sources

3. Implement improved, targeted marketing

4. Further improve product functionality and scalability

• Management delivering results– Released 5.1 – Hired key sales and marketing– Secured 30 new resellers in Q3– Launching software assurance and hardware warranty

programs