8x8, Inc., provider of Packet8 residential, business and video Voice over Internet Protocol (VoIP) phone services, announced the launch of a new, high performance T.38-based business-quality fax over IP service. Packet8 fax service can be immediately provisioned on the 2nd line of any Packet8 Virtual Office BPA-410 business phone adapter. No additional hardware is required, other than the business' existing fax machine(s).

8x8, Inc., the Packet8 broadband VoIP and videophone communications service provider announced the release of Packet8 Softalk, a video-enabled SIP softphone for use with Packet8 voice and video Internet phone services.

With Packet8 Softalk, subscribers can make and receive voice and video phone calls directly from their personal computers. Along with traditional landlines and cell phones, Softalk users can also call Packet8 VideoPhone subscribers to enjoy high quality video communications when traveling without needing to carry along a separate device.

8x8, Inc., provider of Packet8 broadband Voice over Internet Protocol (VoIP) and videophone communications services, issued the following open letter to its shareholders:

Dear 8x8 Shareholders,

Over the past few days, I have received calls from a number of shareholders who expressed concern about 8x8 and the future of the VoIP industry. I would like to take this opportunity to comment on some recent events in the VoIP industry and at 8x8, Inc., which I believe have unjustifiably affected 8x8's stock price and valuation.

8x8, Inc., the Packet8 broadband Voice-over-Internet-Protocol (VoIP) and videophone communications service provider, announced that it has reached an agreement with CompUSA, one of the nation's leading retailers and resellers of technology products and services, to offer Packet8 Virtual Office in each of its 226 nationwide outlets.

Packet8 Virtual Office is a VoIP-hosted PBX phone service that enables small and medium sized businesses (SMBs) to implement a full featured, corporate class phone system for a fraction of the cost of traditional premise-based private branch exchanges (PBXs). In addition to PBX- functionality, Virtual Office service plans provide unlimited local and long distance calling in the U.S. and Canada for a flat-rate of $39.99 a month, as well as lower-priced metered plans and international calling at highly competitive prices.

8x8, Inc., the Packet8 broadband VoIP (Voice over Internet Protocol) and videophone communications service provider, today announced that it has partnered with chip maker Legerity, Inc., the "V" in VoIP, to develop a turnkey Phone-Ready PC solution for PC OEMs. The solution enables PC vendors to bundle Packet8 voice and video Internet phone services with new platforms that offer simplified VoIP communications and enhanced audio and video collaboration.

The Phone-Ready PC simplifies deployment of VoIP services by allowing customers to plug their existing analog phone into a pre-configured PC and immediately begin using an Internet phone service. The 8x8/Legerity turnkey solution incorporates Packet8 VoIP service with a Legerity PCI PhonePort adapter card and Packet8 Softalk, a SIP softphone developed in conjunction with CounterPath Solutions, Inc. for use with the Packet8 residential, video and Virtual Office Internet phone services.

8x8, Inc., the Packet8 broadband Voice over Internet Protocol (VoIP) and videophone communications service provider, announced it has released several new calling features for its Packet8 voice and video residential phone service and the Packet8 BPG510, a new terminal adapter with an integrated router. The new features provide Packet8 subscribers with greater convenience and additional account customization options that cater to their individual calling needs. They include:

8x8, Inc., the Packet8 broadband Voice over Internet Protocol (VoIP) and videophone communications service provider, announced that the Packet8 Virtual Office solution for small businesses received Network Computing magazine's Editor's Choice award over competitive offerings from Covad Communications and Velocity Networks.

8x8, Inc., the Packet8 broadband VoIP and videophone communications service provider and CounterPath Solutions, Inc. unveiled 8x8's latest VoIP service, Packet8 Softalk, a co-branded, video-enabled SIP softphone for use with the Packet8 residential, video and Virtual Office Internet phone services.

Developed using CounterPath's software development kit (SDK), Softalk enables subscribers to make and receive voice and video phone calls directly on their personal computers without the need for a regular analog phone. All that is required is a desktop or laptop personal computer running Microsoft Windows with built-in or external speakers and microphones or a computer headset.

Uniden America Corporation, a leading manufacturer of wireless consumer electronics, and 8x8, Inc., the Packet8 broadband Voice over Internet Protocol (VoIP) and videophone communications service provider, announced the extension of their strategic partnership and introduced a new co-branded VoIP product. The Packet8-enabled UIP165P is a 5.8GHz DSS cordless, service-ready whole house VoIP phone system and on display at the Consumer Electronics Show (CES), January 5 - 8, 2006, at the Las Vegas Convention Center in the Uniden booth # 12044 in the Central Hall.

Level 3 Communications announced that 8x8 has selected Level 3 to provide E-911 to Packet8's nomadic and fixed-location customers. Under the terms of the agreement, Level 3 will provide the underlying network for 8x8's E-911 solution using Level 3 E-911 Direct service.

8x8 has agreed to sell 7,142,858 shares of common stock to two institutional investors at a purchase price of $2.10 per share for aggregate proceeds of approximately $15 million before placement fees and other offering expenses. The investors will also receive warrants to purchase 1,785,714 shares of common stock at an exercise price of $3.00 per share. The warrants contain weighted average anti-dilution provisions. The transaction is expected to close and fund on or about Monday, December 19, 2005.

BellSouth and 8x8 announced the signing of a private label agreement to provide technology, integration and operational services for BellSouth Digital Phone Service.

"With the introduction of BellSouth Digital Phone Service, we are broadening our portfolio of consumer services," said Martin Chandler, Vice President - Product Management for BellSouth. "This new service is another example of our commitment to providing customers with the greatest choice when it comes to their communications and entertainment services."

8x8 has successfully provisioned nomadic E911 emergency calling throughout its network of domestic residential and business Packet8 subscribers.

Effective immediately, all Packet8 subscribers with a U.S. service address can now contact emergency service personnel by dialing 911 from their Packet8 phone. Previously, Packet8 offered E911 service as an optional feature to subscribers, however, earlier this year, the Federal Communications Commission issued an order requiring all interconnected VoIP providers to provide E911 capabilities to their subscribers as a standard component of their service.

8x8 announced the availability of a new, lower-priced unlimited international calling plan for Packet8 residential subscribers.

The Freedom Unlimited Global plan offers unlimited residential calling to the United States and Canada as well as unlimited non-mobile and non-premium calling to the following countries and cities: Australia, Austria, Belgium, Caracas, Chile, China, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Guadalajara, Hong Kong, Ireland, Israel, Italy, Japan, Luxembourg, Malaysia, Mexico City, Monterey, Moscow-Central, Moscow-Suburb, Netherlands, New Zealand, Norway, Poland, Portugal, Puerto Rico, Sao Paulo, Singapore, South Korea, Spain, St. Petersburg, Sweden, Switzerland, Taiwan and the United Kingdom.

8x8 announced it has added the Packet8 Virtual Attendant service to its line of small business VoIP-hosted telecommunications solutions.