FOR IMMEDIATE RELEASE

CONTACT:    Bryce Benson, Investor/Media Relations
            ClearOne Communications Inc.
            Phone: 1.801.974.3786, 1.800.945.7730
            Fax: 1.801.977.0087
            E-mail: bryce.benson@clearone.com

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       ClearOne Provides Update on SEC Complaint, Delays Second Quarter
            Earnings Announcement, Announces Interim Management Team
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SALT LAKE CITY, Jan. 21, 2003--ClearOne Communications Inc. (Nasdaq: CLRO) has
postponed its second quarter earnings release previously scheduled for Jan. 23,
2003, as a result of the complaint filed by the U.S. Securities and Exchange
Commission on Jan. 15, 2003. ClearOne also announced that its chief executive
officer Frances Flood, and chief financial officer Susie Strohm, both named in
the complaint, have been temporarily relieved of their duties at the Company.

The SEC's complaint includes allegations of improper revenue recognition from
sales to distributors. ClearOne sells its products through many channels besides
distributors, including conferencing services, business services, and various
dealer sales channels.

Prior to receiving the SEC complaint, ClearOne's board of directors had
commenced an investigation into the alleged financial statement violations. At
this time, the Company's financial statements for the fiscal years ended June
30, 2001, and June 30, 2002, and for the quarters ended March 31, 2001, through
and including Sept. 30, 2002, are under review. At this time, investment
decisions should not be made based on these financial statements, or on the
auditors' report included in the Company's 2002 Annual Report as filed on Form
10K. In addition, the guidance given by the Company on Oct. 23, 2002, for the
fiscal year ending June 30, 2003, should be treated in the same manner.

The board has named Greg Rand, ClearOne's chief operating officer, and Mike
Keough, chief strategy officer, as acting co-chief executive officers in the
interim. The board is aggressively seeking to hire an interim chief financial
officer. In the meantime, members of ClearOne's accounting and treasury staff,
under the direction of Rand and Keough, and supervised by an independent
accounting firm appointed by the board, will take on additional duties
previously performed by the chief financial officer.

"We believe that the actions taken today are in the best interests of all of our
stakeholders, including shareholders, employees, customers and suppliers," said
Brad Baldwin, a member of ClearOne's board of directors. "We take the SEC's
charges seriously and are committed to a swift internal investigation. Greg and
Mike both have extensive business experience and we have every confidence that
they will bring strong leadership to ClearOne in their co-CEO roles."

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Keough joined ClearOne in November 2002. He is a seasoned business executive
with more than 25 years of sales, sales management, and executive management
experience with high-technology industry leaders, including IBM, AT&T,
Megahertz, U.S. Robotics, 3Com and Textron. Mike's extensive sales management
background includes experience with distributors, retailers, catalog houses,
value added resellers and original equipment manufacturer partners.

Rand joined ClearOne in August 2002 with more than 15 years of business
management experience in planning, design, and continuous improvement of
operating systems and transportation networks. Before joining ClearOne, he
worked for Delta Air Lines in a variety of management positions, including as a
management representative during Delta's recent collective bargaining process.
He also had responsibilities for improving the operational efficiency and
reliability of the Flight Operations department. In addition, he was coordinator
of operations resource control for Delta Express, a business unit of Delta Air
Lines.

"ClearOne is a company with a history of innovation," commented Greg Rand and
Mike Keough, interim co-CEO's of ClearOne. "Our products are highly regarded in
the industry and our employees are dedicated to excellence. As a team, we are
committed to the highest levels of integrity and are focused on serving our
business partners and customers."

Since the SEC complaint was received just last week, the Company is still in the
investigation stage. As such, ClearOne has put as much information as possible
in this press release and will not be holding a conference call to comment on
the earnings delay or the SEC complaint. The Company is, however, committed to
communicating with its shareholders and will update the market at the earliest
possibly time when more news is available. Any additional shareholder, analyst
and press inquiries should be directed to ClearOne's investor relations
department, which can be reached on 1-801-974-3786.

ClearOne Communications is a provider of multimedia conferencing products and
services that bring geographically dispersed people together--compressing time
and distance. Product offerings include audio and video conferencing systems,
peripherals and furniture. Service offerings include a full suite of audio,
video and data conferencing services, and business services such as training,
field support, help desk, and system consulting. On the Web: www.clearone.com.

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