Created and developed entirely in house by Vialta's engineering and design teams, Beamer videophone serves to enhance the way people communicate using their telephones. Beamer videophone does not require any additional equipment or wiring, and there are no additional monthly fees or service plans associated with the product - consumers simply use their existing home phones and phone service. Beamer videophone is as easy to use as your phone. It represents the first release in a new category of consumer products - the Phone Video Station.

"Think of all the times you've placed a call and wanted to see the person on the other end of the line. We've made that possible with Beamer videophone, a product that is simple enough for anyone to use, " said Didier Pietri, president and chief executive of Vialta. "Now all you have to do is pick up the phone, dial your friend or family member and really see what you've been missing."

How Beamer Videophone Works
It takes just a few minutes to have Beamer videophone up and running. Simply plug the phone line into Beamer and Beamer into the phone, then call another Beamer owner and hit "start." Video is then sent to the other party at up to 15 frames per second. As a protective feature for the other party, the unit displays a message on the screen until the called party presses the start button and transmits video back to the caller.

Additionally, during a Beamer videophone phone call you can use the snapshot feature to send a high-resolution still-image to the other party. The snapshot feature doubles as a privacy mode and temporarily halts any new video transmission for as long as desired.

Beamer videophone has three viewing options: The "Self" view allows users to view just themselves; the "Other Party" view shows just the person the caller is speaking to; and the "Combo" view displays both parties on the call.

Beamer Videophone's Stylish Design
Vialta's internal design studio has taken Beamer from conceptualization through prototype development, resulting in a sleek, ultra-slim design that is an ideal marriage of form and function. The muted two-tone color scheme and purity of line give Beamer videophone a modern yet understated persona that fits any home environment.

Pricing and Availability
Beamer BM-80 videophone will roll out nationally in mid-August and is expected to be available in Best Buy, Comp USA, and Fry's Electronics by mid-September. Beamer videophone is also available online at www.vialta.com. Beamer's MSRP for the dual pack, which contains two individually packed units, is $499.99. The MSRP for a single unit is $299.99.

About Vialta
Vialta, Inc. develops, designs and markets unique and innovative home entertainment and communications products. Vialta was formed in April 1999 and is publicly traded on the OTC Bulletin Board under the symbol "VLTA.OB." The company is headquartered in Fremont, California with offices in Los Angeles, CA, Toronto, Canada and Hong Kong. More information about Vialta can be found at www.vialta.com.

The matters discussed in this news release include certain forward-looking statements that involve risks and uncertainties that may cause actual results to differ materially from those indicated, including, but not limited to, the timely introduction and market acceptance of Vialta's new products, the impact of competitive products, pricing pressures, general economic conditions, and the other risks detailed from time to time in the SEC reports of Vialta, including Vialta's Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q. The forward-looking statements contained herein are made only as of the date of this press release, and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.