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Avaya Cements Leading Position in Korean IP Telephony Market,Capturing Nearly Half of the Korean Market

12-03-2003

Avaya Korea Ltd., the Korean subsidiary of Avaya Inc. (NYSE:AV), aleading global provider of communications networks and services forbusinesses, today announced that it has maintained its leadershipposition in South Korea's Internet Protocol (IP) telephony marketfor the second consecutive quarter.Avaya Korea Ltd., the Korean subsidiary of Avaya Inc. (NYSE:AV),a leading global provider of communications networks and servicesfor businesses, today announced that it has maintained itsleadership position in South Korea's Internet Protocol (IP)telephony market for the second consecutive quarter.

The statistics, which measured growth in enterprise IP telephonyfor the second calendar quarter of 2003 showed Avaya's strongposition in the fast-growing IP telephony area. Avaya now accountsfor 47.9% of the local IP telephony market, maintaining itsleadership position for two consecutive quarters according to Frostand Sullivan's recent report Q2 Asia-Pacific Enterprise IPTelephony Update. The report also notes the outstanding performanceof Avaya, whose market share increased 13.2 points from the firstquarter to the second quarter. Avaya has 16.1 percentage pointsmore market share than its closest competing vendor.

"It is a strong performance for Avaya as the company has managedto increase its market share to almost 50% in a highly competitivemarket," said Moaiyad Taher Hoosenally, Industry Manager of Frostand Sullivan Technology Practice. "Coupled with Avaya's ability tocontinuously innovate to provide value-added products and servicesto its customers, the company is expected to maintain itsleadership position in the Korean IP telephony market."

The increase in Avaya's IP telephony market share in Korea inthe second quarter of 2003 was fueled by big projects includingSeoul Auto Gallery and Air Products and Chemicals Korea. Seoul AutoGallery is the largest wireless IP telephony network site in thecountry and Air Products and Chemicals Korea has deployed Avaya IPOffice, an 'all-in-one' IP telephony solution for small and mediumbusinesses, to its four branch offices.

Avaya's outstanding performance in the market reflects thatAvaya effectively executed its strategy to provide a wide range ofIP telephony solutions including all-IP and IP-enabled solutionsthat meet the various needs of customers.

"Avaya's fast growth in Korea's IP telephony market is driven byour expertise in the communications area as well as our expansiveMultiVantage™ Communications Applications portfolio that meetsvarious communications needs of different customers," said DineshMalkani, Managing Director, Avaya Korea. "The Frost and Sullivanreport shows well what customers want and why they chooseAvaya."

According to the Frost and Sullivan report, Korea's IP telephonymarket is predicted to reach US$16.4 million this year from US$5.8million in 2002, representing more than 200 percent growthrate.

About Avaya
Avaya Inc. designs, builds and manages communications networks formore than 1 million businesses worldwide, including 90 percent ofthe FORTUNE 500®. Focused on businesses large to small, Avaya is aworld leader in secure and reliable Internet Protocol (IP)telephony systems and communications software applications andservices.

Driving the convergence of voice and data communications withbusiness applications — and distinguished by comprehensiveworldwide services — Avaya helps customers leverage existing andnew networks to achieve superior business results. For moreinformation visit the Avaya Web site: http://www.avaya.com

About Frost & Sullivan
Frost & Sullivan, an international growth consultancy, hasbeen supporting clients' expansion for more than four decades. Ourmarket expertise covers a broad spectrum of industries, while ourportfolio of advisory competencies include custom strategicconsulting, market intelligence and management training. Ourmission is to forge partnerships with our clients' management teamsto deliver market insights and to create value and drive growththrough innovative approaches. Frost & Sullivan's network ofconsultants, industry experts, corporate trainers and supportstaff, spans the globe with offices in every major country. Formore information, please visit www.frost.com.

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