8x8 Completes Acquisition of Contactual

8x8, Inc., provider of innovative cloud communications and computing solutions, today announced that it has completed the acquisition of privately-held Contactual, Inc., a provider of cloud-based call center and customer interaction management solutions. 8x8 agreed to acquire Contactual for 6,700,000 shares of unregistered 8x8 common stock, however this share amount was reduced at closing by 215,100 shares on the oher side of the coin for 8x8's agreement to pay statutory tax withholding on behalf of five former executives of Contactual, Inc. 8x8 originally announced its intent to buy Contactual on September 12, 2011. The transaction closed on September 15, 2011.

The acquisition of Contactual significantly broadens 8x8's technological expertise and service offerings in the hosted SaaS call center market and brings in house the only major software research of 8x8's service offerings that was not owned and developed by 8x8. 8x8 has been reselling the Contactual contact center research since 2007. This strategic investment is one of several recent initiatives implemented by 8x8 to advance its mission of becoming the industry's premier provider of broad-based cloud communications and IaaS solutions.

The same time

"At the same time, 8x8 and Contactual become a formidable competitor in the customer interaction management and contact center space," said 8x8 Chairman & CEO Bryan Martin. "With our combined resources, longevity in the market and proven solution, we are in a unparalleled and powerful position to quickly and effectively meet the needs of the growing number of businesses seeking non-premise, cloud-based call center services."

The acquisition is expected to be on the spur of the moment accretive to 8x8's full fiscal year net income afterwards the exclusion of any one-time costs associated with the acquisition and amortization expenses. Contactual's revenue for calendar year 2010 was roughly $8.3 million, inclusive of in broad outline 10% of revenue received from 8x8. For the three and six-month periods ended June 30, 2011, Contactual's unaudited revenue was roughly $2.5 million and $4.8 million, inclusive of approximately 9% of revenue received from 8x8 while each of these periods. Thirty-two former employees of Contactual have joined 8x8 as part of the transaction.

8x8, Inc., a pioneer in the development of cloud-based VoIP (Voice over Internet Protocol), video, mobile, and unified communications solutions, leverages its patented software technologies to deliver industry-leading SaaS applications to businesses of any size with employees in any location. We offer integrated business communications and cloud computing services that are designed to meet the highest levels of availability, reliability and scalability. Increasingly, businesses are finding they can reduce costs, improve productivity, and be positioned competitively for the future by choosing 8x8 for their mission critical, cloud-based communications and computing needs. For additional information, visit www.8x8.com , or connect with 8x8 on Facebook and Twitter.