A video conference system provides eye contact and a sense of presence to a plurality of conference participants located in respective remotely-sited conference rooms. Each conference room contains at least one video telephone or communications device that includes a video camera for generating video signals indicative of a sequence of local conferee image frames, and an image receiver for displaying image frames of at least one remote conferee. The image receiver, the video camera, and the eyes of the local conferee define a parallax angle. The video conference system further includes a frame generating system, responsive to the video signals, for analyzing local conferee image frames and generating a corresponding sequence of parallax-compensated frames. A signal indicative of each respective sequence of parallax-compensated frames is transmitted to a corresponding image receiver, whereby apparent eye contact is provided between each local conferee and a displayed image of a corresponding remote conferee. Where more than three conferees are involved, each input image frame is additionally analyzed for head position and the head position is reoriented by the frame generating system as necessary to provide a sense of presence.