To celebrate the innovation, RIHGA Royal will offer a complimentary videophone to Pinnacle guests who stay 15 nights or more, now through June 30, 1999. A simple hook-up at their home or office then allows them to chat "face to face" with family members or colleagues back home whenever they stay at the hotel. The offer also applies to guest staying in Crown Suites for 10 or more nights and Grand Royal Suites for five or more nights.

"The new videophones offer an ideal way to take the anonymity out of guest services provided by phone," says Frank Arthur Banks, general manager of the RIHGA Royal Hotel New York. "In an industry whose success is so dependent on building relationships with its guests, we're proud to be the first to offer what will surely become a new standard."

"The RIHGA Royal Hotel is using our videophones to foster more personal communications between travelers and family and between travelers and the hotel staff," said Chris McNiffe, 8x8's vice president of sales and marketing. "That, of course, is exactly what our videophones were intended to do, and they do it well. We are always very excited to work with the leaders in an industry, and it's clear that RIHGA Royal fits that description." 8x8 offers a complete line of ViaTV Videophones, all of which are easy to use and deliver full-color motion video over standard telephone lines. The elegant Desktop Videophone model includes a brilliant 4-inch color display, and it is perfect for one-to-one video conversations. To allow the whole family to get involved, 8x8 also offers the Set-top Videophone, which uses the consumer's television as its display, letting a whole room full of people to get in the act. Both models include an integrated digital camera and connect to a standard touch-tone phone, which is used to operate the videophone.

Both models are extremely easy to use and set up. Simply plugging in a standard telephone line, a touch-tone phone, and the power supply has the Desktop model up and running in just a few minutes. Connecting the Set-top model to a television takes just a few seconds longer. Both ViaTV Videophones are simple to use: just pick up the phone and dial a friend or relative, just as you would normally. When the other party answers, either party can start video with two keystrokes.

RIHGA Royal Hotel New York's 100 Pinnacle Suites, located on the top floors of the 54-story building, reflect a statement of luxury along with a residential feeling, while providing up-to-the minute technology and services to discerning guests. Pinnacle Suites feature numerous services for the business traveler, including private, chauffeur-driven Town Car transport from any of New York City's three metropolitan airports, complimentary cellular phone with a private number and forwarding capabilities for guests' use during their stay, a private phone line, a mini-business center in each suite, private fax number, in-suite check in and out, and daily newspaper
delivery.

RIHGA Royal Hotel is a luxury, 500-suite hotel catering to business travelers and serving the entertainment industry and leisure travelers. Since opening in 1990, its accommodations have set an industry standard. RIHGA Royal has consistently been awarded the American Automobile Association's Four Diamond Award since its first year of operation. 

About 8x8

A leading manufacturer of video communication systems, semiconductors and software, 8x8, Inc. is committed to providing both businesses and consumers with a more complete way of communicating.  From high-performance video processors to affordable videophones, 8x8's products offer a full range of video communications and telephony solutions.  The company is headquartered at 2445 Mission College Blvd., Santa Clara, California 95054.  

This press release contains forward-looking statements. 8x8's actual results may differ materially from the results discussed, implied or forecasted in the forward-looking statements due to factors including in particular the uncertainty of market acceptance of videophones, the limits of existing videophone technology, rapid technological change, compliance with industry standards, dependence on key personnel, dependence on new product introduction and current and potential competition. Further information on these and other factors that could affect the actual results of 8x8 are included in 8x8's Report on Form 10-Q for the quarter ended June 30, 1998, which is on file with the Securities and Exchange Commission. 8x8, the 8x8 logo and ViaTV are trademarks of 8x8, Inc. All other trademarks are the property of their respective owners.