VTEL® Corporation (Nasdaq:VTEL – news) a leading provider of interactive and Internet-based visual communication products and services, today announced it is supplying Nestle, the world’s largest food company, with a global network of videoconferencing systems.

Nestle is using videoconferencing to enhance communications throughout the organization.

“With a global workforce totaling almost a quarter of a million, communications both internally and externally are an important component to the management of the Nestle Group,” explains Daniel Dufour, head of Telecommunications at the Vevey, Switzerland, headquarters. “We have chosen VTEL to further enhance our videoconferencing network because its equipment offers very good quality and usability, and VTEL’s future strategy fits perfectly with the innovative plans of Nestle.”

Nestle is already using 40 VTEL custom room, WorkGroup and SmartStation(tm) units and will soon be adding VTEL’s latest product offering, Galaxy(tm), to its rapidly growing range. Nestle will expand its use of videoconferencing to support the company’s growth, incorporating systems that will handle the increasing demand for information sharing, supporting IP, ISDN and other wide-area configurations.

“We are delighted that Nestle chose VTEL to support its aggressive worldwide communications and information sharing demands,” says Roger Huckerby, managing director for VTEL Europe. “Videoconferencing has provided companies, like Nestle, with the ability to improve communication between employees, suppliers and customers alike. Many companies have proved that videoconferencing has helped them to reduce costs, increase productivity and improve communication channels as well as having a quick return on investment.”

Videoconferencing will further the development of management communication at Nestle and provide links between corporate research centers worldwide.

With a total workforce of approximately 230,929 people, 509 factories in 83 countries and a consolidated turnover of $48.7 billion, Nestle is Switzerland’s largest industrial company and also the world’s largest food company. Nestle products are available in nearly every country around the world.

Based in Austin, Texas, with offices and resellers in 61 countries, VTEL Corporation is a global leader in high technology visual communications products and services. From Internet visual communications software and services to videoconferencing systems and video-networking solutions, VTEL offers customers the most complete range of products and implementation support. VTEL serves customers in the commercial, education, health care and government markets by combining the power of traditional videoconferencing with the vast reach of the Internet.

VTEL, Galaxy and SmartStation are registered trademarks of VTEL Corporation.

VTEL Corporation, 108 Wild Basin Road, Austin, Texas, 78746. Phone: 512/437-2700, Fax: 512/437-2792. VTEL Web site: http://www.vtel.com Nestle Web site: http://www.nestle.com