– Revenues are $24.5 Million – – Operating Income is $0.5 Million; Non-GAAP Operating Income is $1.6 Million – – GAAP EPS is $0.02; Non-GAAP EPS is $0.08 –

TEL AVIV, Israel (October 28, 2010) – RADVISION® (Nasdaq: RVSN) reported today that revenues for the third quarter of 2010 were $24.5 million, an increase of 20% from $20.4 million in the third quarter of 2009 and above the Company’s forecast.

For the third quarter of 2010, the Company recorded operating income of $0.5 million on a GAAP basis and $1.6 million on a non-GAAP basis, which excludes amortization of purchased intangibles and stock-based compensation expense. For the third quarter of 2009, operating income was $1.4 million on a GAAP basis and $2.5 million on a non-GAAP basis excluding stock-based compensation expense.

Net income for the third quarter of 2010 was $0.3 million, or $0.02 per diluted share. On a non-GAAP basis, net income was $1.6 million, or $0.08 per diluted share. This excludes $0.5 million of expense for amortization of purchased intangibles related to the acquisition of certain assets of Aethra group, $0.6 million for the effects of stock-based compensation expense in accordance with ASC 718 (previously SFAS 123R) and a loss of $0.2 million due to the other than temporary impairment of certain Auction Rate Securities. The total amount excluded for non-GAAP purposes was $1.3 million, equivalent to $0.06 per diluted share.

For the third quarter of 2009, net income was $1.2 million, or $0.06 per diluted share, on a GAAP basis, and $2.5 million, or $0.13 per diluted share, on non-GAAP basis. This excludes stock-based compensation expense of $1.0 million and a loss of $0.3 million due to the other than temporary impairment of certain Auction Rate Securities, with the total of $1.3 million equivalent to $0.07 per diluted share.

For the third quarter of 2010, total revenues consisted of $20.7 million for the Video Business Unit or VBU (formerly the Networking Business Unit or NBU) and $3.9 million for the Technology Business Unit (TBU). This compares with $15.6 million for the VBU and $4.8 million for the TBU reported in the third quarter of 2009.

The Company’s forecast for the third quarter of 2010, presented on August 4, was for revenues of $24.0 million (consisting of VBU revenues of $20.0 million and TBU revenues of $4.0 million), non-GAAP operating income of $0.6 million and non-GAAP net income of $0.5 million or $0.02 per diluted share.

For the first nine months of 2010, revenues were $68.6 million, the operating loss was $4.3 million and the net loss was $4.8 million, or $0.25 per diluted share. This compares with revenues of $58.3 million, operating income of $0.5 million and net income of $0.8 million, or $0.04 per diluted share, in the first nine months of 2009.

On a non-GAAP basis, the Company had operating income of $1.7 million and net income of $1.5 million or $0.07 per diluted share for the first nine months of 2010. This compares with operating income of $3.8 million and net income of $4.6 million or $0.24 per diluted share for the first nine months of 2009. Non-GAAP amounts in the first nine months of 2010 exclude $2.8 million of one-time expenses and $1.3 million of amortization expense related to the acquisition of the Aethra assets, $1.8 million for the effects of stock-based compensation expense and a loss of $0.3 million due to the other than temporary impairment of certain Auction Rate Securities. The total amount excluded for non-GAAP purposes in the first nine of 2010 was $6.2 million, equivalent to $0.32 per diluted share. Non-GAAP amounts in the first nine months of 2009 exclude the effect of stock-based compensation expense of $3.3 million and a loss of $0.6 million due to the write-down of certain Auction Rate Securities, with the total of $3.8 million equivalent to $0.20 per diluted share.

The reconciliation between GAAP net income and Non-GAAP net income is provided in the tables at the end of this release.

The Company ended the third quarter of 2010 with approximately $115.5 million in cash and liquid investments, equivalent to $5.99 per basic share, a decrease of $6.8 million from June 30, 2010. The decrease reflects the use of $7.1 million for a cash self-tender offer for 5% of the company’s shares, completed September 7, 2010, and $0.7 million used for capital expenditures offsetting $1.0 million generated by operating activities and $0.1 million received from the exercise of options.

Boaz Raviv, Chief Executive Officer, commented: “Our third quarter results were better than expected due to the very strong performance of our Video Business Unit. Our VBU revenues grew 32% over the third quarter of 2009, more than overcoming the as-expected 21% step-down in revenues from Cisco.

“Driving our VBU growth was the continued market success of our SCOPIA infrastructure platform, which we continue to advance, combined with our successful introduction of endpoints at the beginning of this year, which has transformed RADVISION into an end-to-end video solution provider.

“Our third quarter revenues from endpoints were double those of the second quarter of 2010 as we benefited from the first full quarter of sales of our SCOPIA XT1000 high definition room conferencing system. When combined with sales of our SCOPIA VC240 all-in-one desktop solution, our total endpoint revenues reached 21% of VBU revenues in the third quarter. Our Technology Business Unit played a critical role in the development of our endpoints.

“Our new position as an end-to-end video solution provider has enabled us to deepen our relationships with current reseller partners as well as expand and diversify our channel in both developed and emerging markets globally.

Mr. Raviv concluded: “The continued execution of our strategy in the third quarter of 2010 produced important and tangible results. This is a time of enormous opportunity in the video market. We remain fully focused on moving quickly to seize it.”

Guidance

The following statements are forward-looking, and actual results may differ materially.

The Company expects to report revenues for the fourth quarter of 2010 of approximately $26.0 million and net income of approximately $1.2 million or $0.06 per diluted share. This includes stock-based compensation expense in accordance with ASC 718 of $0.6 million and amortization of purchased intangible assets of $0.5 million. Excluding these items, non-GAAP net income for the fourth quarter of 2010 is expected to be $2.2 million or $0.12 per diluted share. That compares to revenues in the fourth quarter of 2009 of $22.7 million and a net loss of $1.5 million, or $0.08 per diluted share. This included stock-based compensation expense of $1.0 million, a deferred tax asset write-down of $4.3 million and acquisition-related costs of $0.6 million. Excluding the effect of these items, non-GAAP net income for the fourth quarter of 2009 was $4.4 million, or $0.23 per diluted share. (Full details of the Company’s forecast are available on the Company’s web site at www.radvision.com.)

GAAP versus NON-GAAP Presentation

To supplement the consolidated financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company uses non-GAAP measures of operating results, net income and earnings per share, which are adjusted from results based on GAAP to exclude net profit and loss from other than temporary impairment of available-for-sale marketable securities, the expenses recorded for stock compensation in accordance with ASC 718, amortization of purchased intangibles, acquisition-related costs and acquisition-related restructuring expenses, net. These non-GAAP financial measures are provided to enhance overall understanding of the current financial performance and prospects for the future. Specifically, the Company believes the non-GAAP results provide useful information to both management, and investors as these non-GAAP results exclude other than temporary impairment of available-for-sale marketable securities, the expenses recorded for stock compensation in accordance with ASC 718, amortization of purchased intangibles, acquisition-related costs and acquisition-related restructuring expenses, net that the Company believes are not indicative of the core operating results. Further, these non-GAAP results are one of the primary indicators management uses for assessing the Company’s performance, allocating resources and planning and forecasting future periods. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. These non-GAAP measures may be different from the non-GAAP measures used by other companies.

Third Quarter 2010 Earnings Conference Call/Webcast

RADVISION will hold a conference call to discuss its third quarter 2010 results and fourth quarter outlook, today, Thursday, October 28, at 9:00 a.m. (Eastern). To access the conference call, please dial 1-877-601-3546 (International dialers may call +1-210-839-8500) by 8:45 a.m. (Eastern). The passcode “RADVISION” will be required to access the live conference call. A live webcast of the conference call also will be available on the Company’s website and archived on the site until the next quarter. Simply click on the following link or copy it onto your browser: www.radvision.com/Corporate/Investors/FinancialReports/. A replay of the call will be available beginning approximately one hour after the conclusion of the call through 11:00 p.m. (Eastern) on November 4th. To access the replay, please dial 1-800-216-3057 (International dialers may call +1-402-220-3763).

The PowerPoint presentation highlighting key financial metrics as well as the fourth quarter 2010 estimate also will be available in the Investor Relations section of the company’s website. The presentation will be available beginning at 8:00 a.m. (Eastern) on October 28th and will be archived on the website until the end of the third quarter.

About RADVISION

RADVISION (Nasdaq: RVSN) is the industry’s leading provider of market-proven products and technologies for unified visual communications over IP, 3G and IMS networks. With its complete set of standards-based video communications solutions and developer toolkits for voice, video, data and wireless communications, RADVISION is driving the unified communications evolution by combining the power of video, voice, data and wireless

This press release contains forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, our ability to integrate the Aethra video assets into our product offerings, general business conditions in the industry, changes in demand for products, the timing and amount or cancellation of orders and other risks detailed from time to time in RADVISION’s filings with the Securities Exchange Commission, including its Annual Report on Form 20-F. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.

(*) Reconciliation of GAAP to Non-GAAP measures (Unaudited)

Source: RADVISION