8x8, Inc. Joins Small Business Bailout Efforts

Company Announces Limited Time, End-of-Year Cost Reduction Program to Help Small Businesses Weather Financial Storm

SANTA CLARA, Calif., Dec. 3 -- 8x8, Inc. (NASDAQ:EGHT) , provider of 8x8 Virtual Office and Packet8 (http://www.packet8.net/) broadband business, residential, video and mobile communications services, today announced it has joined national efforts to relieve cash-flow burdens on small businesses by reducing monthly service charges for its Virtual Office Business Phone Service by 50% for new subscribers.

Normally priced at $49.99 per month/extension, Virtual Office hosted PBX phone service, an all inclusive Internet-based telecommunications solution which combines unlimited local and long distance calling with advanced PBX features, is now available to companies who subscribe by December 31, 2008 for a monthly fee of $24.99/extension or a one-time annual fee of $250/extension for the first year of service. New customers must purchase 8x8's new Internet protocol (IP) phones and agree to keep service for a minimum of one year in order to be eligible for the promotion.

Internet telephony technology, otherwise known as VoIP (Voice over Internet Protocol), lets companies deploy a full-featured business phone system over their existing broadband network for a fraction of the cost of traditional alternatives. For a small business, this can result in significant cost savings as there is no expensive equipment to buy or maintain. Additionally, monthly service fees covering unlimited calling and business- class features are fixed, facilitating a predictable and worry-free budgeting process.

Says 8x8, Inc. Chairman & CEO Bryan R. Martin, "VoIP technology has quickly come into focus as an effective and immediate cost cutting tool for small and medium-sized businesses. Benefits like predictable monthly phone bills, remote working capabilities, and Fortune 500 enterprise-class calling features are not only helping our small business customers survive in this recession, but are actually helping them to prosper and run their businesses more efficiently. We want more companies to experience the business advantages that VoIP communications services like Virtual Office can deliver."

8x8's Virtual Office enables businesses to do away with their expensive PBX systems and the costs that come along with it -- costs that include paying for more lines and services than a company needs and the mounting service charges tacked on each time a technician is called to the site.

"Internet telephony has changed the game," added Mr. Martin. "Customers can get the same quality phone service, for far less cost. The system installs in minutes and is loaded with standard features like auto-attendants, unlimited conference calling, music on hold, ring groups, one number dialing and more -- all of which can add a big-business feel to a smaller business set-up."

Existing 8x8 Virtual Office subscribers are saving 50% and more off their legacy monthly telecommunications costs by making the switch from traditional phone services to the VoIP platform and, with more cash reserves, are better prepared to wait out today's deteriorating financial conditions.

"Virtual Office service has significantly expanded our phone system's capabilities and at the same time reduced our operating cost per unit," said Scott Howard of Spokane Valley, Washington-based Western Security Appraisal Services. "When we first chose to switch to Virtual Office, we saw about a 50% reduction in cost for the same features and function that our old PBX phone company offered."

Jesse Baker, owner of an iSold It franchise in Long Island, New York, says, "Virtual Office keeps my staff working instead of answering frequently asked questions on the phone. The auto-attendant handles the FAQs and my staff stays focused on the job. This has saved me hundreds of dollars every month in labor expenses."

Notes Martin, "The Virtual Office cost reduction program we are offering through December is not just about bringing more people through our doors but, more importantly, is about awakening business' awareness of these new technologies and showing them how these telecommunication services can help keep their doors open."

About 8x8, Inc.

8x8, Inc. (NASDAQ:EGHT) offers voice, video and mobile communications solutions for business and residential customers. These solutions leverage existing broadband Internet connections and cellular networks to deliver advanced features and digital quality phone service at a fraction of the cost of legacy, copper wire alternatives. Businesses of any size, configuration or geographic location can benefit from the cost, performance and operational advantages of VoIP technology by selecting the solution that best fits their needs, whether it's the Virtual Office Hosted iPBX phone system, Complete Contact Center, Virtual Trunking IP dial tone solution, Hosted Key System service or Microsoft Response Point/8x8 small business phone system. All 8x8 communications solutions carry little or no upfront investment, no maintenance or upgrade fees and no change in user behavior. For additional company information, visit 8x8's web site at http://www.8x8.com/.