A Letter to Our Customers from President & CEO Andy Miller

June 1, 2011

Dear valued customer,

Polycom today announced several ground-breaking developments in the unified communications industry that are aimed at further breaking down the barriers many organizations still face in deploying UC.

First, we announced Polycom's intended acquisition of HP's Visual Collaboration business unit, including its Halo Products and Managed Services Business. Along with the planned acquisition, HP and Polycom have agreed to establish a strategic relationship in which Polycom will serve as HP's exclusive partner for telepresence and video UC solutions, including both resale and internal HP deployments. Polycom and HP have also agreed to integrate Polycom's industry-leading video applications with HP's WebOS platform to enable mobile video communications and drive UC Everywhere^SM.

The goal of our agreements is to provide you with a world-class end-to-end UC solution. We believe the combination of HP's networking scale and global reach with Polycom's expertise in video conferencing will deliver an unsurpassed enterprise video communication offering. By connecting a broad range of video telepresence and other endpoints through the Polycom UC Intelligent Core™ infrastructure deployed on HP networking solutions and systems, we will help you capitalize on the underlying benefits of networking as the foundation for a superior video experience and tap the global services HP can employ to provide turnkey communications solutions.

In other major industry news, we also announced today the revolutionary Open Visual Communications Consortium (OVCC) platform, an open video exchange cloud with the world's leading service providers. The vision and objective of this truly ground-breaking consortium is simply this: to make it as easy to communicate over video as it is to connect on mobile phones today.

In an unprecedented industry development, 14 top service providers around the globe have joined forces in the OVCC organization to deliver business-to-business communication through the cloud, which will make it possible for you to easily communicate over video with your customers, suppliers, and partners. Founding members include: Airtel, AT&T, BCS Global, BT Conferencing, Cable&Wireless Worldwide, Global Crossing, Glowpoint, iFormata Communications, Masergy, Orange Business Services, PCCW Global, Telefonica, Telstra, and Verizon.

The OVCC members will connect millions of users worldwide through agreements with hundreds of interconnected service providers across six continents. Polycom provides key components of this first global open video exchange cloud with the Polycom UC Intelligent Core infrastructure and our broad market-leading portfolio of world-class UC devices.

In conjunction with the launch of the OVCC platform, Polycom is deepening our strategic partnership with Juniper Networks by creating service provider initiatives that tie directly to optimization for the open video exchange services offered by the OVCC. These include the integration of Polycom into Juniper Networks' infrastructure, which will enable service providers and enterprises to deploy a solution that is feature rich, reliable, scalable, and optimizes utilization for a lower total cost of ownership.

In addition to these market-changing industry developments, we announced the development of two new breakthroughs in enterprise UC with Microsoft. The first, code-named “Rally,” will bring a brand new way of working and collaborating to the conference room. This productivity tool combines high-quality HD telepresence with Microsoft Lync to deliver a powerful yet simplified user experience. This new product will also break new ground in the UC industry by being the first fully integrated telepresence solution with Microsoft's cloud-based Office 365 solution.

Both of our new offerings with Microsoft expand on our existing joint development and go-to-market activities on multiple fronts. Under a previous strategic agreement, Polycom delivered native integration with Lync across the Polycom UC Intelligent Core infrastructure, telepresence family, and voice endpoints. We also announced SVC, the underlying technology that enables Polycom and Microsoft to deliver the industry's most powerful telepresence application to hundreds of millions of Microsoft desktops.

With these and our other strategic partnerships with the members of the Polycom Open Collaboration Network, including IBM, BroadSoft, Siemens, McAfee, and Avaya, Polycom is dedicated to bringing you enhanced choice, interoperability, investment protection, and ease of deployment. I believe the agreements and announcements we are making today are just the beginning of a roadmap of innovative solutions for many years to come.

For more information on today's industry thought-leadership developments, I invite you view our Polycom UC webcast. Additional details may also be found on Polycom's website at www.polycom.com.

I welcome your feedback and any questions you might have. Please don't hesitate to contact me directly at PolycomExecOffice@Polycom.com.

Sincerely,

Andy Miller
President and Chief Executive Officer, Polycom