By Maria Seminerio

The product is a self-contained hardware and software system that connects to a multimedia PC's SCSI or parallel port and enables full-duplex video and audio conferencing over the Internet. It does not require a sound card or video capture card and carries no usage fees beyond monthly Internet access charges, company officials said.

Camelot Chairman and CEO Danny Wettreich compared VideoTalk to the company's DigiPhone product, saying, "Just as DigiPhone enables free audio communication using the Internet, now VideoTalk will allow free video and audio conferencing using the Internet."

The development program for VideoTalk is expected to be completed by the end of the year. The product will include the new DigiPhone 2.0, featuring a multiprotocol framework allowing voice communication with other Internet telephony software, company officials said. Pricing has not yet been announced.

The unit attaches to the side of a computer monitor and includes a handset and a built-in camera that can be adjusted to allow for close-ups and wide-angle views. Its conferencing feature can receive transmissions from video servers that distribute one-way broadcasts.

VideoTalk will include expansion peripheral interfaces, including a cable television Internet access unit, a mobile phone unit, a fax machine and an answering machine. It will also provide automatic video and audio recording in the event of a security breach, officials said. The peripherals will be released next year.

The product's software will provide integration with Microsoft Corp.'s ActiveX conferencing technology, officials said.

Camelot's subsidiary, Third Planet Publishing Inc., will provide API specifications so that developers can use VideoTalk in applications such as Internet-based multimedia games.

Camelot is a holding company with subsidiaries focusing on software development and distribution.