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Hello Direct(R) and Dialogic(R) to Develop New PBX Interface Solutions

     New Products and Technology Will Allow Easy Connectivity to Digital
                              Telephone Systems

    SAN JOSE, Calif., Oct. 16 /PRNewswire/ -- Hello Direct, Inc.
(Nasdaq: HELO), a leading developer and direct marketer of desktop telephony
solutions, and a pioneer in communications interface technology, today
announced it has signed a licensing agreement with Intel Corporation's
Dialogic subsidiary intended to accelerate the development of new
telecommunications interface equipment.  This agreement is designed to help
Hello Direct expand its leadership in solving the growing problem of
analog-to-digital equipment compatibility.  The agreement will help enable
Hello Direct to develop many different variations of a next-generation PBX
interface solution, and to license the technologies and sell products
developed over the next 24 months to major manufacturers of telecommunications
systems.
    "We couldn't be more excited about this agreement," said Alec Glover,
president and CEO of Hello Direct.  "The solutions that result from this
agreement, as extensions of our successful LineStein(TM) product introduced in
1998, could ultimately allow seamless analog and digital compatibility and
give the customer much more freedom of product choice and combination.  With
each new offering, we further strengthen our commitment to bring to market
interface solutions that simplify PBX and Key System connectivity at the
desktop in today's office environment."
    According to Glover, the agreement with Dialogic is part of an expansion
of the R&D effort that is an essential element of Hello Direct's growth
strategy.  "We talked to potential technology partners about our vision and
concepts, and chose Dialogic because they have the proven expertise and track
record to help us take our interface solutions to the next level," added
Glover.
    Ron Kalp, vice president of PBX Integration at Dialogic, also cited the
commercial application of technological innovations that the agreement makes
possible.  "This agreement provides an exciting opportunity to deploy our core
technology into Hello Direct's interface solutions and target market.  As one
of the acknowledged leaders in the desktop equipment interface market, Hello
Direct has impressive knowledge of end-user needs and the product development
and marketing skills to make this technology agreement a great success," said
Kalp.

    "Universal And Adaptive" Interface Technology
    Under terms of the agreement, Dialogic Corporation will provide the
necessary PBX / key system protocols which Hello Direct will incorporate into
a proprietary, patents-pending "universal and adaptive" analog-to-digital
interface architecture.
    This new family of interface solutions will address the issue of
connecting analog equipment (e.g., modems, teleconferencers, corded and
cordless telephones) directly to a digital PBX or key system wall jack in any
business environment.  The new "universal and adaptive" interface technology
will connect easily to virtually all of the popular PBX and key systems in the
market today and be designed to allow users to gain access to e-mail, Internet
and VoIP applications without the need for costly analog lines.
    This technology should allow users to make calls, answer calls and go off
hook with any analog device connected to a digital PBX port.  These types of
PBX functions normally cannot be activated without an analog interface line
card.  This universal and adaptive interface technology will be designed to
allow connectivity and utilization of many devices such as headsets, desktop
and laptop computers, teleconferencing equipment, corded and cordless phones,
and dial-up modems.  This new interface solution would be the first universal
solution for "mixed appliance" applications, where many people want to use a
variety of analog devices in their work environment but cannot get an analog
line connection to the desktop.
    Hello Direct will work with an integrated team of Dialogic engineers and
experts in PBX interface technology, industrial design, custom ASIC
development, electrical engineering and manufacturing to deliver this new
interface solution.  Pricing is not yet set, but is expected to be very
attractive relative to the much higher-cost analog line and analog PBX card
solutions available today.
    These new patents-pending interface solutions are intended to take Hello
Direct's product offerings to the next level of connectivity to PBX's and key
systems. The company is already considered a leading resource for analog-to-
digital adapter solutions in North America.  Future product releases will also
have USB (Universal Serial Bus), voice recognition and IP telephony
connectivity in an effort to provide broad appeal and address multiple
applications.

    About Hello Direct, Inc.
    Hello Direct, Inc. (Nasdaq: HELO) is a leading developer and business-to-
business direct marketer of desktop telephony and equipment interface
solutions, including headsets, audio and video conferencing, wireless and
related desktop products.  Through a combination of distinctive catalogs,
outbound telemarketing and Internet sales channels, the Company offers a broad
selection of commercial-grade solutions to its customers' evolving
communications needs. For more information on Hello Direct, Inc. please visit
http://www.hellodirect.com, a leading online source of telecommunications
information, products and services.
    This release contains forward-looking statements.  These forward-looking
statements involve risks and uncertainties that could cause actual results to
differ, and such differences could be material.  A description of the risks
that could cause results to vary is contained under the caption "Management's
Discussion And Analysis Of Financial Condition And Results Of Operations"  in
the Company's reports on Form 10-K and Form 10-Q on file with the SEC.  Hello
Direct assumes no obligation to update these forward-looking statements for
subsequent events.


SOURCE Hello Direct, Inc.




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Related links:
  • http://www.hellodirect.com
    CONTACT:
    Ron Becht of Hello Direct, Inc.,
    408-363-2026, or ron.becht@hellodirect.com