VTEL Launches New Entity, Onscreen24

VTEL (http://www.vtel.com) announced the formation of Onscreen24, an independent business entity established by VTEL to focus exclusively on delivering visual communications products and services.

In other signs that VTEL is getting serious about this, it announced it has hired investment banker Bear, Stearns to assist the company in securing additional financing.

VTEL Chief Executive Officer and President Stephen Von Rump said that the formation of Onscreen24 is part of the company's strategy to create shareholder value by leveraging VTEL's market and technological strengths into high-growth markets. "Onscreen24 is a vehicle by which VTEL can naturally extend its core competencies and organizational strengths into a marketplace that has tremendous upside potential," said Von Rump. "With the financing assistance of Bear, Stearns & Co. and its investment network, VTEL can seek the capital necessary to accelerate Internet operations while continuing its leadership in providing first-class videoconferencing solutions to our core customer base."

The company will initially focus on business-to-business commerce and plans to introduce its "Video Commerce" system

VTEL's Chief Technology Officer Ly-Huong Pham has been named chief operating officer of Onscreen24., dedicating her efforts entirely to the development of VTEL's new business.

"The Internet and related technologies are providing an infrastructure that is rapidly removing the barriers for the delivery of media-rich communications solutions over digital networks," said Pham. "Onscreen24 plans to seize the business opportunities that this ever-expanding environment is presenting."

Pham said Onscreen24 would take advantage of VTEL's Java streaming technology that was developed by Vosaic LLC, which was acquired by VTEL in March 1999.