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Avaya and Extreme Networks Form Comprehensive Strategic Alliance

11-04-2003

Avaya Inc. (NYSE: AV) and Extreme Networks Inc. (NASDAQ: EXTR) haveentered into a multiyear, multimillion-dollar strategic alliance tojointly develop and market converged communications solutions.Avaya will also resell Extreme Networks' data networking productsand will provide comprehensive planning, design, implementation andmanagement services support through Avaya Global Services. Thisrelationship will provide businesses around the world with one ofthe broadest arrays of converged technologies and services in theindustry and will provide them to customers through a singlerelationship.

Avaya Inc. (NYSE: AV) and Extreme Networks Inc. (NASDAQ: EXTR)have entered into a multiyear, multimillion-dollar strategicalliance to jointly develop and market converged communicationssolutions. Avaya will also resell Extreme Networks' data networkingproducts and will provide comprehensive planning, design,implementation and management services support through Avaya GlobalServices. This relationship will provide businesses around theworld with one of the broadest arrays of converged technologies andservices in the industry and will provide them to customers througha single relationship.

The alliance brings together Avaya's global market leadership inIP telephony1, related applications and services forconverged environments with Extreme Networks' expertise inhigh-performance IP data network infrastructure. Together, thecompanies will provide their customers with a range of converged,standards-based solutions. These solutions will be comprised ofAvaya's IP-based MultiVantage™ Communications Applications,converged security and media gateways and servers, and ExtremeNetworks award-winning Ethernet platforms that include itsBlackDiamond® and Alpine® chassis-type switch families withintegrated Layer 2 and 3 data switching and routingcapabilities.

As a reseller of Extreme Networks' portfolio of data networkingproducts, Avaya will sell, service and support the entire line ofExtreme Networks products. Avaya's worldwide services organization— Avaya Global Services — provides customers with a single point ofaccountability for managing multi-vendor networks from more than 20vendors. Avaya Global Services will provide Avaya and ExtremeNetworks' customers network assessment and optimization, securityand business continuity planning, deployment, training, technicalsupport, maintenance and managed services.

Avaya will continue to offer its existing customers its own lineof data networking products and related services and support, inaddition to the Extreme Networks portfolio. Extreme Networks willalso continue to sell its switching systems through itsmultinational distribution channels.

The agreement between the two companies also includes Avayareceiving a warrant to purchase up to 2.6 million shares of ExtremeNetworks' common stock at a price of $0.01.

"Businesses are looking for more choices, significantly improvedperformance, lower costs and enhanced security from theircommunications networks," said Mike Thurk, group vice president forAvaya's enterprise communications group. "Avaya and ExtremeNetworks are now offering our customers best-of-breed technologies,along with services that are fundamental to the integration ofvoice, data and video applications. This relationship willaccelerate the adoption of convergence and speed the development ofnext-generation solutions by combining Avaya's global leadership inmulti-vendor IP telephony solutions and services with ExtremeNetworks' leadership in network infrastructure."

The new alliance underscores each company's commitment toproviding solutions that address the current demands of informationtechnology (IT) executives as they evolve their organizations toconverged communications. The two companies will also developnext-generation, standards-based technologies in the areas ofmanagement and provisioning, Quality of Service (QoS), security,and network resilience that utilize advanced protocols, such as theSession Initiation Protocol (SIP).

"Together, Extreme Networks and Avaya share a commitment to opensolutions that have the simplicity, flexibility and performancebusinesses need to run their enterprise networks morecost-effectively," said Gordon L. Stitt, president and CEO ofExtreme Networks. "Now customers have a superior alternative tocostly, proprietary products and can increase their productivity,reduce implementation costs and protect their investment in theirexisting, multivendor infrastructure."

The strategic alliance announced today by Avaya and ExtremeNetworks significantly expands upon collaborative marketing andsales initiatives the companies already have in place. Thecompanies said they have numerous joint customers through theirrelationship. One of those customers is the Warren, MichiganConsolidated School District.

"We've been using equipment from Extreme Networks and recentlybegan deploying Avaya equipment into our converged networkinfrastructure because their products work very well together,"said Dan Milbeck, director of information technology for WarrenConsolidated Schools. "No other combination of data networking andIP telephony vendors could provide us with the ease of integrationor rich features we needed to tie together our 31 buildingsspanning 35 square miles. Additionally, our converged network willsave the district up to $350,000 annually and will pay for itselfin less than three years.

"The combined efforts of Extreme Networks and Avaya have made IPtelephony relatively easy to deploy today and their ongoing effortswill undoubtedly lead to even greater standards-based integrationin the future."

For more information on the strategic alliance announced todayby Avaya and Extreme Networks, please visit: www.avaya.com/extremenetworksand www.extremenetworks.com/avaya.

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 Extreme Networks
Extreme Networks delivers the most effective applications andservices infrastructure by creating networks that are faster,simpler and more cost-effective. Headquartered in Santa Clara,Calif., Extreme Networks markets its network switching solutions inmore than 50 countries. For more information, visit www.extremenetworks.com.

1 Synergy Research Group, EnterprisePacket Voice Worldwide Market Shares, 2nd Quarter 2003, publishedAugust 14, 2003.

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