Leading Provider of Web Hosting Services Purchases Telanetix Digital Presence System to Connect Major Offices

Telanetix, Inc. (OTC Bulletin Board: TNXI) a leading developer of IP networks, video and conferencing standards, today announced that Hostway Corporation has purchased its Digital Presence systems to connect Hostway's Vancouver, B.C. operation center with their Corporate Headquarters in Chicago, IL. The unique Digital Presence system allows the separate locations to be merged into a single unified environment where users appear on four 50-inch plasma screens, eye-to-eye and in full size without the latency and jitter normally associated with video conferencing. Using Telanetix developed Codecs to deliver real-time video, audio and data over the clients' private network, the system produces clear, crisp high definition images at 30 frames per second.

In the competitive web hosting market, Hostway has been able to grow and prosper by delivering new and innovative products to meet the needs of a demanding marketplace. In an environment such as this, real time communication is vital. The Digital Presence System from Telanetix provides Hostway's management team in Chicago with the ability to interact with executives in their Vancouver facility as if they are all in the same room.

"We have been looking for a life-like communication solution to connect our global operations," said John Martis, VP and Division General Manager for Hostway. "The Digital Presence System from Telanetix gives us a top quality video conferencing experience at a price that makes sense for us."

"Hostway is a global leader and innovator in their industry," said Tom Szabo, Chairman and CEO of Telanetix, "We are pleased to be able to provide them with a tool that will facilitate their continued growth."

Telanetix completed installation of the Vancouver and Chicago installations on September 15, 2006.

About Telanetix, Inc.
Telanetix, Inc. has developed a unique technology which creates a fully immersive and interactive environment that integrates audio, video, and data from multiple locations into a single environment regardless of geographic boundaries. The company's Digital Presence Technology delivers full size, face-to-face images of real-time video, audio, and data in high quality resolution at 30 frames per second which is so profoundly real that users feel as if they are all present in the same room. Using Telanetix developed Codecs and advanced MPEG-4 compression on a Linux platform, the Company has effectively replaced the central videoconferencing bridge of legacy systems with high quality decentralized IP multicasting which provides speed and resolution which is significantly greater than those found in most existing technologies.

Additional information is available at the Telanetix Corporate website at www.telanetix.com.

About Hostway Corporation
Hostway Corporation provides domain registration, Web hosting, Web design and online marketing services to more than 400,000 customers worldwide. Hostway helps individuals, small businesses and large enterprises achieve more value from state-of-the-art Web-based technologies by reducing their complexity and cost. Founded in 1998, Hostway is one of the five largest Web hosting companies in the world with offices in North America (Chicago (HQ), Austin, Tampa and Vancouver), Europe (Belgium, France, Frankfurt, Hanover, London and Netherlands), Asia (Korea) and Australia (Sydney). For more information about Hostway Corporation, please visit www.hostway.com or call 1-866-467-8929.

Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements are inherently subject to risks and uncertainties some of which cannot be predicted or quantified based on current expectations. Such risks and uncertainties include, without limitation, the risks and uncertainties set forth from time to time in reports filed by the company with the Securities and Exchange Commission. Although the company believes that the expectations reflected
in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to publicly release statements made to reflect events or circumstances after the date hereof.

Source: Telanetix, Inc.

Related links:
www.hostway.com
www.telanetix.com