Packet8 Virtual Office Small Business VoIP System Ready for Retail Shelves

8x8, Inc. (Nasdaq: EGHT - News), the Packet8 broadband voice over internet
protocol (VoIP) and videophone communications service provider, announced the
availability of a specially packaged retail version of the Packet8 Virtual
Office business class phone system designed to meet the needs of traditional
storefront merchants.
Packet8 Virtual Office is an affordable, easy-to-use VoIP based alternative to traditional PBX systems or Centrex class services from legacy telecommunications providers. In response to a growing demand from retailers serving the small-to-medium business (SMB) market, 8x8 has created a special, all inclusive Virtual Office retail package, enabling customers to acquire and self-install a powerful, off the shelf business phone system at significant cost savings.

"SMBs no longer have to settle for costly, high maintenance PBX systems on one end or an inadequate makeshift phone setup on the other end," said Huw Rees, 8x8 Vice President of Marketing & Sales. "Virtual Office delivers the most requested small business phone features -- PBX functionality, ease of use and low cost -- in one complete offering. Our retail vendors are anxious to bring this unique VoIP solution to their small business customers."

Retailers, including Best Buy Business Direct, Comp USA and Buy.com, plan to offer Packet8 Virtual Office as an all-inclusive, off-the-shelf phone system to fulfill the IP communication needs of their business customers.

The Virtual Office retail package consists of a broadband phone adapter and hands-free business class telephone priced at $99.95. Monthly Packet8 service for Virtual Office costs $39.95 per extension and includes a host of advanced PBX functions along with unlimited local and long distance business calling to any telephone in the United States and Canada. A minimum of three Virtual Office extensions is required for the system to function. For initial set-up costs, subscribers pay a $39.00 activation fee per extension.

Packet8 Virtual Office offers the services small businesses need most,
including:
-- Customizable auto-attendant providing dial by extension, name or by
group;
-- Unlimited local and long distance calling to the US, Canada and other
Packet8 subscribers worldwide, as well as access to some of the lowest
international rates;
-- Direct Inward Dial (DID) phone number with any desired area code for
each extension;
-- Conference bridge, music on hold, call park/pick-up, hunt groups;
-- Business-class voice mail including voicemail to email alerts;
-- Extension-to-extension dialing anywhere in the world;
-- One-touch controls for regularly used features such as three-way
calling, forwarding, do not disturb, Voicemail, Distinctive Ringing,
Call waiting / Caller-ID, and transfer;
-- Online, real-time monthly billing statements and Optional services such
as:
-- Receptionist console application;
-- Virtual phone numbers for any extension; and
-- Toll Free Phone numbers and service.


Virtual Office allows users anywhere in the world to group multiple Packet8 VoIP lines into a virtual business telephone system that includes a host of PBX features. Virtual Office gives small businesses geographic independence and flexibility, providing feature-rich telephones that bring together dispersed staff to sound like one office location or to appear as satellite offices located all over the world.

About 8x8, Inc.

VoIP (voice over internet protocol) service provider 8x8, Inc. offers internet-based telephony solutions (www.packet8.net) for individual residential and business users as well as small to medium sized business organizations. In addition to regular Packet8 VoIP service plans, priced as low as $19.95 per month for unlimited anytime calling to the U.S. and Canada, 8x8 now offers the Packet8 DV 326 VideoPhone, the industry's first stand alone broadband consumer videophone. Packet8 Virtual Office, 8x8's VoIP system for small to medium sized businesses, is a hosted PBX solution comprised of powerful business class features. For additional company information, visit 8x8's web site at www.8x8.com .

This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements relating to the sale and distribution of our Packet8 Virtual Office products by certain retailers. Investors are cautioned that these statements involve risks and uncertainties, and actual results could be materially different from those discussed in this news release. These risks include the risk that the Packet8 Virtual Office products may not be offered by these retailers. Further information on factors that could affect the actual results of 8x8, Inc. are included in 8x8, Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2004, which is on file with the Securities and Exchange Commission. 8x8 does not assume any obligation to revise or update any forward-looking statements contained in this press release that become untrue because of subsequent events.

NOTE: 8x8, the 8x8 logo, Packet8, the Packet8 logo and Packet8 Virtual Office are trademarks of 8x8, Inc. All other trademarks are the property of their respective owners.




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Source: 8x8, Inc.

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