SANTA CLARA, Calif., July 28, 2005—WebEx Communications, Inc. (Nasdaq: WEBX) today announced financial results for the second quarter ended June 30, 2005.

For the second quarter of 2005, revenues were $75.3 million, a 23% increase from $61.1 million in the second quarter of 2004. Net income was $13.9 million, a 35% increase from $10.3 million in the second quarter of 2004. Diluted earnings per share, (“EPS”) were $0.29, an increase of 32% from $0.22 in the second quarter of 2004.

During the second quarter of 2005, cash and short-term investments increased to approximately $220.8 million, up $13.6 million from the first quarter of 2005. Cash flow from operations of $ 13.6 million was offset by $3.4 million of capital expenditures, providing free cash flow of $10.2 million. During the second quarter of 2005, WebEx spent approximately $8.5 million as part of its stock buyback program, repurchasing approximately 385,000 shares of common stock. During the second quarter of 2005, WebEx received approximately $11.8 million in cash from stock issuances under employee stock plans.

“We had another good quarter, demonstrating the expanding market for collaborative application services,” said Subrah Iyar chairman and chief executive officer of WebEx. “As companies realize the huge cost advantages of on-demand solutions, we continue to see new customer requirements like the WebEx Retention Solution we announced during second quarter.”

Guidance
The following contains forward-looking guidance regarding WebEx’s financial outlook. The following statements are based on current expectations.

WebEx reiterates revenue guidance for the 2005 fiscal year in the range of $300 to $310 million. WebEx is increasing EPS guidance for the 2005 fiscal year to the range of $1.14 to $1.20 from earlier guidance of $1.08 to $1.18. For the third quarter of 2005, WebEx anticipates revenues in the range of $76.5 to $79.0 million and EPS in the range of $0.28 to $0.30.

Conference Call
Management will host the quarterly conference call to discuss the results today July 28, 2005, beginning at 5:00 p.m. EDT. In conjunction with the audio call, there will be a WebEx meeting for the visual part of the presentation. Interested parties may participate in the conference call in one of two ways:

To join the WebEx online meeting and listen to the audio via the computer
(WebEx VoIP), please go to webex.com/q2_earnings_voip.
or
To join the WebEx online meeting and listen to the audio via the telephone, please go to webex.com/q2_earnings_tele and call 617-614-3933 and enter passcode 90504408.

For those unable to participate in the live WebEx meeting, a replay will be available beginning one hour after the conclusion of the meeting and both the transcript and the presentation materials will be posted on the investor relations’ section of the web site. To replay the recorded WebEx meeting, go to webex.com/q2_replay or to replay the audio only, call (617) 801-6888 and enter passcode 90504408.

About WebEx Communications
WebEx Communications, Inc. is the world's leading provider of collaborative web meeting applications. WebEx applications improve collaboration and increase productivity in sales, support, training, marketing, engineering and product design. WebEx delivers its suite of real-time collaborative applications over the global WebEx MediaTone Network, a network specifically designed for secure web collaboration. WebEx Communications is based in Santa Clara, California and with offices in Europe, Asia and Australia. Please call toll free 877-509-3239 or visit www.webex.com for more information.

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