Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
HU GILBERT
  2. Issuer Name and Ticker or Trading Symbol
ALTIGEN COMMUNICATIONS INC [ATGN]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
CEO
(Last)
(First)
(Middle)
410 EAST PLUMERIA DRIVE
3. Date of Earliest Transaction (Month/Day/Year)
07/21/2009
(Street)

SAN JOSE, CA 95134
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 07/21/2009   A   10,000 (1) A $ 0 847,877 D  
Common Stock 07/21/2009   F   2,500 D $ 0 845,377 D  
Common Stock 09/11/2009   S   119,475 D $ 0.82 725,902 D  
Common Stock               11,978 I By Wife
Common Stock               30,000 I By Daughter
Common Stock               99,841 I By Daughter

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option (right to buy) $ 11.375 09/01/2009   D     60,000   (2) 11/01/2009 Common Stock 60,000 (3) 0 D  
Employee Stock Option (right to buy) $ 0.86 09/01/2009   A   5     (3) 09/01/2019 Common Stock 5 (3) 5 D  
Employee Stock Option (right to buy) $ 0.86 09/01/2009   A   59,995     (3) 09/01/2019 Common Stock 59,995 (3) 59,995 D  
Employee Stock Option (right to buy) $ 12.6875 09/01/2009   D     10,000   (4) 02/03/2010 Common Stock 10,000 (5) 0 D  
Employee Stock Option (right to buy) $ 0.86 09/01/2009   A   33     (5) 09/01/2019 Common Stock 33 (5) 33 D  
Employee Stock Option (right to buy) $ 0.86 09/01/2009   A   9,967     (5) 09/01/2019 Common Stock 9,967 (5) 9,967 D  
Employee Stock Option (right to buy) $ 8 09/01/2009   D     30,000   (6) 04/17/2010 Common Stock 30,000 (7) 0 D  
Employee Stock Option (right to buy) $ 0.86 09/01/2009   A   1,005     (7) 09/01/2019 Common Stock 1,005 (7) 1,005 D  
Employee Stock Option (right to buy) $ 0.86 09/01/2009   A   28,995     (7) 09/01/2019 Common Stock 28,995 (7) 28,995 D  
Employee Stock Option (right to buy) $ 2.125 09/01/2009   D     40,000   (8) 11/16/2010 Common Stock 40,000 (9) 0 D  
Employee Stock Option (right to buy) $ 0.86 09/01/2009   A   16,032     (9) 09/01/2019 Common Stock 16,032 (9) 16,032 D  
Employee Stock Option (right to buy) $ 0.86 09/01/2009   A   23,968     (9) 09/01/2019 Common Stock 23,968 (9) 23,968 D  
Employee Stock Option (right to buy) $ 3.82 09/01/2009   D     80,000   (10) 01/05/2014 Common Stock 80,000 (11) 0 D  
Employee Stock Option (right to buy) $ 0.86 09/01/2009   A   64,826     (11) 09/01/2019 Common Stock 64,826 (11) 64,826 D  
Employee Stock Option (right to buy) $ 0.86 09/01/2009   A   15,174     (11) 09/01/2019 Common Stock 15,174 (11) 15,174 D  
Employee Stock Option (right to buy) $ 2.98 09/01/2009   D     80,000   (12) 11/12/2014 Common Stock 80,000 (13) 0 D  
Employee Stock Option (right to buy) $ 0.86 09/01/2009   A   72,696     (13) 09/01/2019 Common Stock 72,696 (13) 72,696 D  
Employee Stock Option (right to buy) $ 0.86 09/01/2009   A   7,304     (13) 09/01/2019 Common Stock 7,304 (13) 7,304 D  
Employee Stock Option (right to buy) $ 1.3 09/01/2009   D     100,000   (14) 11/15/2017 Common Stock 100,000 (15) 0 D  
Employee Stock Option (right to buy) $ 0.86 09/01/2009   A   83,705     (15) 09/01/2019 Common Stock 83,705 (15) 83,705 D  
Employee Stock Option (right to buy) $ 0.86 09/01/2009   A   16,295     (15) 09/01/2019 Common Stock 16,295 (15) 16,295 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
HU GILBERT
410 EAST PLUMERIA DRIVE
SAN JOSE, CA 95134
  X     CEO  

Signatures

 /s/ Philip McDermott, as Attorney-in-Fact By and on behalf of Gilbert Hu   09/15/2009
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Grant of restricted stock award. 100% of shares granted vest on date of grant.
(2) The option provided for vesting as follows: 25% on 11/1/2000 then one 48th each month through 11/1/2003.
(3) On September 1, 2009, the Issuer cancelled, pursuant to the Issuer's option exchange program, an option granted to the Reporting Person on November 1, 1999. In exchange, the reporting person received a replacement option, for 5 shares, having an exercise price of $0.86 per share, which vested 100% on November 1, 2003 and 59,995 shares having an exercise price of $0.86 per share, which vest if and when the closing price of our common stock equals or exceeds $2.50 per share.
(4) The option provided for vesting as follows: 25% on 2/3/2001 then one 48th each month through 2/3/2004.
(5) On September 1, 2009, the Issuer cancelled, pursuant to the Issuer's option exchange program, an option granted to the Reporting Person on February 3, 2000. In exchange, the reporting person received a replacement option, for 33 shares, having an exercise price of $0.86 per share, which vested 100% on February 3, 2004 and 9,967 shares having an exercise price of $0.86 per share, which vest if and when the closing price of our common stock equals or exceeds $2.50 per share.
(6) The option provided for vesting as follows: 25% on 4/17/2001 then one 48th each month through 4/17/2004.
(7) On September 1, 2009, the Issuer cancelled, pursuant to the Issuer's option exchange program, an option granted to the Reporting Person on April 17, 2000. In exchange, the reporting person received a replacement option, for 1,005 shares, having an exercise price of $0.86 per share, which vested 100% on April 17, 2004 and 28,995 shares having an exercise price of $0.86 per share, which vest if and when the closing price of our common stock equals or exceeds $2.50 per share.
(8) The option provided for vesting as follows: 50% on 11/16/2001 and 50% on 11/16/2002.
(9) On September 1, 2009, the Issuer cancelled, pursuant to the Issuer's option exchange program, an option granted to the Reporting Person on November 16, 2000. In exchange, the reporting person received a replacement option, for 16,032 shares, having an exercise price of $0.86 per share, which vested 100% on November 16, 2002 and 23,968 shares having an exercise price of $0.86 per share, which vest if and when the closing price of our common stock equals or exceeds $2.50 per share.
(10) The option provided for vesting as follows: 25% on 11/12/2004 then one 48th each month through 11/12/2007.
(11) On September 1, 2009, the Issuer cancelled, pursuant to the Issuer's option exchange program, an option granted to the Reporting Person on January 5, 2004. In exchange, the reporting person received a replacement option, for 64,826 shares, having an exercise price of $0.86 per share, which vestd 100% on November 12, 2007 and 15,174 shares having an exercise price of $0.86 per share, which vest if and when the closing price of our common stock equals or exceeds $2.50 per share.
(12) The option provided for vesting as follows: 25% on 11/12/2005 then one 48th each month through 11/12/2008.
(13) On September 1, 2009, the Issuer cancelled, pursuant to the Issuer's option exchange program, an option granted to the Reporting Person on November 12, 2004. In exchange, the reporting person received a replacement option, for 72,696 shares, having an exercise price of $0.86 per share, which vested 100% on November 12, 2008 and 7,304 shares having an exercise price of $0.86 per share, which vests if and when the closing price of our common stock equals or exceeds $2.50 per share.
(14) The option provided for vesting as follows: 25% on 11/15/2008 then one 48th each month through 11/15/2011.
(15) On September 1, 2009, the Issuer cancelled, pursuant to the Issuer's option exchange program, an option granted to the Reporting Person on November 15, 2007. In exchange, the reporting person received a replacement option, for 83,705 shares, having an exercise price of $0.86 per share, which vests 100% on November 15, 2011and 16,295 shares having an exercise price of $0.86 per share, which vest if and when the closing price of our common stock equals or exceeds $2.50 per share.

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