PlanetWeb, Inc., a leading developer of consumer Internet software, and 8x8, Inc., a leading developer of video-compression integrated circuits, today announced that PlanetWeb's web-browsing/e-mail application will be supported by video phones based on a forthcoming chipset from 8x8.

The integration of these technologies will enable the development of low-cost set top appliances that allow consumers to both surf the Web and have video phone communications. Aside from the box, consumers will need only an ordinary phone line and a television set to display video phone images and Web pages.

"PlanetWeb provided us with a simple, cost-effective way to add Internet capability to our hardware," said Joe Parkinson, CEO and chairman of 8x8. "The modular design and small memory footprint of the PlanetWeb Browser integrated easily with our existing video phone chipset design."

"We're committed to providing easy, fun-to-use software that allows consumers to surf the Internet with a variety of devices," said Kamran Elahian, CEO and chairman of PlanetWeb. "Low cost Internet appliances like those based on the chipset from 8x8 are the wave of the future for consumer Internet access."

The PlanetWeb Browser allows consumers to easily browse the Web and send electronic messages from Internet appliances. The Browser is compatible with most Internet Service Providers and incorporates a highly-regarded parental control system. The PlanetWeb Browser uses proprietary technologies to produce clear, sharp text and bright, crisp images viewable from a TV-watching distance.

The Browser will be added to 8x8's low bit-rate video-phone processor (LVP) integrated circuit. The LVP chip is designed to support H.324-based video phones using standard phone lines. It can display images on an ordinary television or LCD display and can deliver up to 12 frames per second. The LVP semiconductor's unique architecture also allows it to communicate with PC-based video phones from 8x8, Intel and computer manufacturers like Compaq. About 8x8

Founded in 1987, 8x8, Inc. formally Integrated Information Technology (IIT), is a developer of high-performance silicon and software for video communications applications. 8x8 is a leader in the markets of H.320 ISDN and H.323 LAN based video conferencing technology and H.324 POTS video phones technology. 8x8 is headquartered in Santa Clara, with 90 employees worldwide and with a European office located in London.

About PlanetWeb

PlanetWeb, Inc. develops consumer software for multiple platforms of Internet appliances. The company's first product is The PlanetWeb Browser, a powerful World Wide Web browser and e-mail application. This Browser makes it simple, easy and fun for consumers to surf the Internet. Moreover, the product works with existing hardware designs and allows users to choose their own Internet Service Provider.

The portable architecture, small memory requirements and lack of need for an operating system enables it to be quickly and inexpensively customized for a wide variety of Internet appliances.

The PlanetWeb Browser is currently shipping in volume through Sega of America and in Brazil. In addition to game systems and TV video phones, PlanetWeb is also developing Internet enabling software for set-top boxes and Net Computers.