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Avaya and Polycom to Develop IP-Based Solutions that Make Desktopand Group Video Communication as Simple as a Phone Call

12-08-2003

Avaya Inc. (NYSE: AV) and Polycom, Inc. (NASDAQ: PLCM) todayannounced that the companies will collaborate to jointly developand market new Internet protocol (IP)-telephony-enabled videosolutions that will make desktop and group video communication assimple as a phone call. The result is intended to help businessescommunicate more efficiently, reduce costs, simplify networkmanagement and make real-time video a significant component ofenterprise communications. The companies also said Avaya plans tosell and service Polycom products globally — significantlyexpanding the companies' existing strategic reseller relationshipin North America that includes more than 10,000 videoimplementations.Avaya Inc. (NYSE: AV) and Polycom, Inc. (NASDAQ: PLCM) todayannounced that the companies will collaborate to jointly developand market new Internet protocol (IP)-telephony-enabled videosolutions that will make desktop and group video communication assimple as a phone call. The result is intended to help businessescommunicate more efficiently, reduce costs, simplify networkmanagement and make real-time video a significant component ofenterprise communications. The companies also said Avaya plans tosell and service Polycom products globally — significantlyexpanding the companies' existing strategic reseller relationshipin North America that includes more than 10,000 videoimplementations.

The joint development initiative between the two companies willcombine Polycom's market leadership in IP video communicationsworldwide and Avaya's global leadership in communications networksand services for businesses, including the rapidly growing marketfor IP telephony. The companies said the open, standards-basedsolutions will enable them to respond to the growing market forvideo communications.

According to a recent survey of chief information officersconducted by Gartner Inc, desktop video conferencing was citedfirst among a list of emerging technologies based on their futurepotential1. Avaya and Polycom said they intend to markettheir jointly developed IP video communications solutions to the360 million business PCs (Frost & Sullivan) and 55 millionconference rooms (Wainhouse Research) currently in use around theworld.

"Enterprises are beginning to prepare their networks forconvergence, so that they can take advantage of new collaborativeapplications that combine voice, data and video," said LawrenceOrans, principal analyst, Gartner Research. "We are seeing anupswing in IP telephony adoption and a strong related desire tobring desktop and group video to the converged communicationsnetwork, enabling faster collaborative decision-making."

Through joint development initiatives, Avaya and Polycom plan toprovide businesses with the ability to adopt a single IPinfrastructure that integrates voice, data and video applications.New, easy-to-use collaboration capabilities will be accessible atthe desktop, in conference rooms and at off-site locations viamobile devices. These capabilities will combine voice calls andconferencing, instant messaging, speech access and mobilecommunications for broader, real-time communication among workersin increasingly dispersed global enterprises. As a result,companies can be more nimble — making faster decisions andimproving productivity and responsiveness to customers.

The jointly developed solutions from Avaya and Polycom will bedesigned to make voice and video easier to manage across anenterprise. The companies plan a single network management systemfor voice and video that includes common signaling, a standardizeddial plan, common directories, and common authentication andauthorization procedures. Avaya-Polycom solutions will be built onopen, standards-based protocols that allow businesses toincorporate new video capabilities into existing multivendornetwork infrastructures to preserve capital investments.

The joint development work between Avaya and Polycom is plannedto incorporate the Avaya MultiVantage™ Communications ApplicationsSuite, including the company's flagship Avaya Communication ManagerIP telephony software, with leading video communicationcapabilities from Polycom. These include Polycom's ViaVideo®desktop solutions, group video systems, MGC family of unifiedconferencing bridges, and voice terminals.

Scheduled for delivery in mid-2004, the first jointly developedproducts from Avaya and Polycom will integrate Polycom video intoAvaya's Softphone application, allowing users to make both phoneand video calls through a simple interface on their PC or laptopcomputer. Their joint development roadmap also includes the videoenabling of Avaya desktop IP telephones to facilitate videocommunication to a phone call with the click of a mouse or touch ofa button and to use telephony features such as hold, forward andtransfer while on a video call.

"Integrating video into converged voice and data networksenables businesses to take advantage of face-to-face communicationwith the click of a button, across a corporate campus and aroundthe globe," said Mike Thurk, group vice president for Avaya'senterprise communications group. "These open, standards-basedsolutions offer significant productivity gains and operationalefficiencies using IP networking. Through our joint developmentefforts with Polycom, Avaya is accelerating delivery of theseadvanced collaboration applications to the global marketplace."

Avaya and Polycom plan similar innovations to meet the rigorousquality demands of today's enterprise. Digital signal processingcapabilities are built into the Polycom ViaVideo camera to ensuresuperior audio and video performance at the desktop, and thecompanies will be developing real-time capabilities that will allowbusinesses to monitor network performance and ensure optimalallocation of bandwidth. As a result of this relationship, Avayawill be able to offer businesses a single source for the design,implementation and management of both converged networkinfrastructures and multimedia communication applications.

"Video communication and collaboration technologies have thepower to revolutionize workplace productivity in the same way voicemail, email and Internet commerce have done," said Bob Hagerty,president and CEO, Polycom. "By working with the innovative AvayaCommunication Manager software platform for IP telephony and usingstandard protocols such as H.323 and SIP, we have the opportunityto create more powerful, cost-effective linkages among the manytypes of communication that drive business success."

Barclays Global Investors Uses Video Conferencing and IPTelephony for Strategic Communication
A business that expects to benefit from the IP telephony-enabledvideo products is the investment management firm Barclays GlobalInvestors. The company currently uses video conferencing from Avayaand Polycom to cost effectively promote face-to-face communicationbetween employees in their many international locations in the US,Asia and Europe. "Video is a strategic communication medium forBarclays," says Pat Green, telecommunications manager.

"Since we have already seen the benefits of implementing AvayaIP voice and networking solutions, we are excited about theprospect of bringing the new IP telephony-based solutions fromAvaya and Polycom into our conference rooms and to desktopsthroughout our business. This will enable us to provide the toolsthat support our business critical communications, while wecontinue to drive down the costs."

Avaya-Polycom Expand Strategic Reseller AgreementGlobally
The reseller portion of the Avaya-Polycom relationship will expandbeyond existing sales of Polycom solutions in North America toaddress the demand for video communication and converged solutionsglobally. Now Polycom solutions, as well as the joint convergedsolutions developed by Polycom and Avaya, will be represented byAvaya's direct sales force. The companies also plan to offer theirproducts through dual, authorized Avaya-Polycom business partnerswho will have access to market development funds, training andcertification programs.

Worldwide service and support for Polycom products and for thosejointly developed with Avaya will be provided by Avaya GlobalServices, the largest and most experienced services business in theindustry and an established leader in converged networks. The AvayaGlobal Services Multimedia Collaboration Center — a center ofexcellence for video — has extensive video integration expertiseand has implemented more than 10,000 enterprise video communicationsolutions to date. Additional Avaya Services competencies includethe design, building and management of IP networks, networkconsulting services using a unique suite of ExpertNetSMVoIP assessment tools, security and continuity services,implementation services, and comprehensive maintenance andmanagement services for multivendor communications networksworldwide.

About Polycom
Polycom, Inc. is the world's technology leader of high-quality,easy-to-use video, voice, data and web conferencing andcollaboration solutions. The Polycom Office™ is our continuedcommitment to make distance communications as natural andinteractive as being there by providing best-in-class conferencingsolutions that are interoperable, integrated and intuitive to theuser. For additional information, call 1-800-POLYCOM (765-9266) or+1-408-526-9000, or visit the Polycom Web site at www.polycom.com.

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

Polycom, the Polycom logo, and ViaVideo areregistered trademarks and The Polycom Office is a trademark ofPolycom in the U.S. and various countries. ©2003, Polycom, Inc. Allrights reserved.
1Tactical Guidelines, TG-18-6377, "Technology Adoptionand Value," by J. Fenn, R. Ball, Dec. 18, 2002.

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