ITEM 3.01 NOTICE OF DELISTING OR FAILURE TO SATISFY A CONTINUED LISTING RULE OR STANDARD; TRANSFER OF LISTING.

On September 15, 2009, AltiGen Communications, Inc. received notification from the Nasdaq Stock Market ("Nasdaq") that for the 30 consecutive business days preceding the date of the notification, the closing bid price of AltiGen's common stock had been below the $1.00 minimum bid price per share required for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2).

In accordance with Nasdaq Listing Rule 5810(c)(3)(A), AltiGen will be granted 180 calendar days, or until March 14, 2010, to regain compliance with the minimum bid price requirement by maintaining a closing bid price of $1.00 per share or higher for a minimum of 10 consecutive trading days. If the Company is successful in meeting this requirement, Nasdaq will provide written notification that is has achieved compliance with the rule. If the Company is unsuccessful in meeting the minimum bid requirement during this initial 180-day period, Nasdaq will provide notice to AltiGen that its common stock will be subject to delisting. Alternatively, AltiGen may be eligible for an additional grace period if it meets the initial listing standards, with the exception of bid price, for the Nasdaq Capital Market under Nasdaq Listing Rule 5505. If it meets the initial listing criteria, according to the notification, AltiGen will be provided notice that it has been granted an additional 180 calendar day compliance period. AltiGen is evaluating its options to reestablish compliance with Nasdaq Listing Rule 5550(a)(2).

AltiGen issued a press release on September 18, 2009 concerning this matter, a copy of which is attached.

ITEM 9.01(d) EXHIBITS.

99.1 Press release of AltiGen Communications, Inc. regarding receipt of notice from the Nasdaq Stock Market dated September 15, 2009.

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