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Frost & Sullivan Releases Latest Web Conferencing Market Report: WebEx Communications Increases to 67% Market Share

SAN JOSE, Calif., May 6, 2004 — According to the annual web conferencing industry report published by research and consulting firm Frost & Sullivan, the market share of web conferencing services provider WebEx Communications (Nasdaq: WEBX) has climbed to a new high of 67%, more than four times greater than any other vendor. The April 2004 report, titled "World Web Conferencing Markets," includes details on the current market landscape and size, projected growth rates and market share by provider, and trends and new developments in the industry.

"WebEx’s investment in its global MediaTone Network truly sets it apart from the rest of the pack," stated report author David Alexander, Frost & Sullivan industry analyst. "WebEx continues to be the driving force behind the successful web conferencing services market and its success proves WebEx’s corporate mantra, ‘web conferencing is a communications business’."

Other highlights from the Frost & Sullivan annual report include:

  • Web conferencing is penetrating non-technology sectors including retail, manufacturing and legal.
  • The factors driving growth include increased awareness, expanding availability, and growing convergence with audio and video conferencing technologies.
  • The growing number of telecommuters and expanding geographic disparity of businesses is expected to drive additional interest and adoption of web conferencing.
  • The increasing availability of broadband and growing awareness in international markets will expand opportunities for vendors.

For more information regarding the "World Web Conferencing Markets" report, contact Frost & Sullivan at http://www.frost.com

WebEx manages a global network over which it delivers a range of web communications services including services for web conferencing, web-based support, remote training and online events. WebEx provides its services to corporations, technology companies and telecommunication providers worldwide. All of WebEx’s services are built on the MediaTone™ communications platform and delivered through the WebEx MediaTone Network, the only global network specifically designed for web communications. MediaTone’s unique information-switching technology allows the WebEx network to manage complex media types, deliver advanced communications functionality, and support a range devices and platforms.

About Frost & Sullivan

Founded in 1961, Frost & Sullivan is recognized as a global leader in growth consulting. Frost & Sullivan Awards are presented to companies that demonstrate excellence in their industry, commending the diligence, commitment, and innovative business strategies required to advance in the global marketplace. Frost & Sullivan rigorously analyzes specific criteria to determine award recipients in a vast variety of market industries and landscapes. For further information, visit www.frost.com.

About WebEx Communications, Inc.

WebEx Communications, Inc. is the world’s leading provider of web communications services. WebEx services are used across the enterprise in sales, support, training, marketing, engineering and product design. WebEx provides carrier-class services using its MediaTone communications platform deployed over the WebEx MediaTone Network, a high-speed global network specifically designed for real-time web communications. With its unique information-switching technology, multimedia capabilities and standards-based APIs, MediaTone is the "dial tone" for web communications. WebEx Communications is based in San Jose, California and has regional headquarters in Europe and Asia. Please call toll free (877) 509-3239 or visit http://www.webex.com for more information.

Journalists should contact Colin Smith at Antenna Group (415) 977-1912 or colin@antennagroup.com.

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This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by use of the terms anticipates, believes, continue, could, estimates, expects, intends, may, plans, potential, predicts, should or will, or the negative of those terms or similar expressions. These forward-looking statements are subject to significant risks and uncertainties. Actual results may differ materially from those described in such statements as a result of these risks and uncertainties. In particular, these forward looking statements include, but are not limited to, the statement that WebEx online meetings help companies increase sales, decrease training cost, improve customer satisfaction and expand marketing programs. Factors which could contribute to risks and uncertainties include, but are not limited to, the failure of customers to utilize WebEx services effectively in their business or to reduce their other expenses. A fuller discussion of the risks and uncertainties that could affect WebEx Communications, Inc. are more fully set forth in WebEx Communications, Inc.’s filings with the Securities and Exchange Commission (SEC), including WebEx’s Form 10-K filed with the SEC on March 12, 2004 and Form 10-Q, filed with the SEC on November 14, 2003. WebEx Communications, Inc. assumes no obligation to update forward-looking information contained in this press release.