Contact:
Soo Chung Patterson
408-955-7783
soo@televideo.com

TeleVideo Expands Distribution with GTS- GRAL in U.S.

Arrangement Provides Broader Reach for TeleVideo Thin-client Products in the U.S. and Europe

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 4, 2000
TeleVideo, Inc. (OTC BB: TELV - news ) today announced that it has signed an agreement with Germany based GTS-GRAL to distribute TeleVideo Inc.'s TeleCLIENT(TM) thin-client product line in the United States.

"We are delighted to partner with GTS-GRAL, combining our thin-client solutions with the strength of GTS-GRAL's distribution. Through this alliance we will be able to deliver to GTS-GRAL's customers the most advanced thin-clients available today,'' said Joe Burroughs, vice president of worldwide sales, TeleVideo, Inc. "The TeleVideo TeleCLIENT thin-clients are unique as they are carefully designed to reduce the overall total cost of ownership (TCO) in server-based computing environments.''

"GTS-GRAL is a leading supplier of thin-client solutions in the United States and has a strong international presence with operations throughout Europe,'' said Darryl Staples, vice president of GTS-GRAL. "The addition of TeleVideo's TeleCLIENT thin-client products to our repertoire of offerings is a big plus for GTS-GRAL and its customers. It opens new paths to cost-effective, high-speed IT solutions for our customers and provides GTS-GRAL with access to the most sophisticated technology available in this market segment.''

TeleCLIENT family

TeleCLIENT products are part of the flagship family of thin-client Windows-based terminals from TeleVideo. The TC7000 is a sleek, compact stand alone design that can be connected to your specific CRT monitor needs. The TC7150 and TC7170 come integrated with crisp, clear 15- and 17-inch color CRT monitors. The TeleCLIENT TC7300 Series is the first fully-integrated Windows-based thin-clients with a built-in high resolution TFT LCD screen. Bundled as an all-in-one design, the TC7300 Series is perfect for limited workspaces. TheTeleCLIENT family is the fastest, most powerful, cost-effective solution in the industry today. Ideal for healthcare, government, education, retail and other task-oriented client/server based computing environments TeleVideo's thin-clients are accelerated by Pentium-class 233MHz from National Semiconductor. TeleCLIENT thin-clients are powered by Windows CE, enabling each terminal fast and easy access to business-critical applications. You also have the flexibility to choose the Remote Desktop Protocol that executes along Windows NT 4.0 Terminal Server Edition, or the Citrix ICA protocol through Citrix MetaFrame or WinFrame. Windows CE gives the TC7000, TC7150, TC7170 and the TC73000 Series server-side access to popular Windows-based business applications such as the Microsoft Office suite, Java, as well as the Internet.

About GTS-GRAL

GTS was established in Darmstadt, Germany, both as a reseller and integrator of server-based computing. GTS-GRAL is a worldwide assemblage with corporations in over seven countries. It has built the reputation of using the "Best of Class'' products to supply the industry with paramount solutions in server-based computing. GTS-GRAL, U.S. is the latest addition to the growing GRAL family. Now in its 15th year of business, GTS-GRAL boasts one of the largest installed bases of thin-clients found in enterprises spanning the globe. With well over 50,000 seats deployed since the mid eighties, first hand experience and knowledge has cultured a maturing business with an intricate understanding of the many complexities involved in the make up of a server-based environment. For more information visit the website at www.gtsgral.com .

About TeleVideo, Inc.

Founded in 1975, TeleVideo, Inc. is a pioneer in thin client server-based computing. The company provides innovative, high-performance terminals and monitors to business and consumer markets. The company first became a leader in the video display terminal industry by introducing a new generation of "smart'' terminals based on the Intel microprocessor at a time when dumb terminals were the industry standard. TeleVideo holds a number of proprietary terminal emulations, including the TV910 and TV9425, which have been an industry standard for more than 15 years and are currently used in millions of terminals worldwide. Today, the company is utilizing its expertise in server-based network computing to forge new ground in delivering thin-client solutions. For more information visit the web site at www.televideo.com.

This release contains certain forward-looking statements. Readers should not place undue reliance on forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Note to Editors: TeleCLIENT(TM) is a trademark of TeleVideo, Inc. Other product and company names herein may be trademarks of their respective owners.