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Avaya Small and Medium Business Solutions Group Launches into China

02-24-2004

In a significant move to address China's small and medium business market, Avaya Inc. announced the official launch of its Small and Medium Business Solutions Group and its flagship Avaya IP Office solutions into China.

In a significant move to address China's small and medium business market, Avaya Inc. (NYSE: AV), a leading global provider of communications networks and services for businesses, today announced the official launch of its Small and Medium Business Solutions Group and its flagship Avaya IP Office solutions into China.

Avaya aims to provide China's small and medium businesses and the branches of large enterprises with leading voice and data convergence solutions made possible by Avaya IP Office, helping them to increase their productivity and serve their customers better.

Avaya IP Office, its "all-in-one" Internet Protocol (IP) solution for small and medium businesses, provides the sophistication of big business voice and data communications at an affordable price. Tailored to the special needs of small and medium businesses, IP Office is easy to install, easy to manage, and easy to expand. The IP Office products announced today have a unified operation interface in Chinese.

As a leader in this market sector, Avaya will also be able to bring to China's small and medium businesses the expertise and experiences it has obtained in serving worldwide customers. According to InfoTech, Avaya leads the U.S. market in IP Telephony solutions for small and medium businesses (<100 lines). Its combined U.S. market share, including Key/Hybrid and IP PBX, stood at 21% at Q3 of 2003.

Statistics reveal that China now has 10 million small and medium businesses, accounting for more than 99% of total enterprises nationwide. According to a report by CCID, one local research company in China, the IT market for small and mid-sized businesses will have a compound annual growth rate of 18.3% over the next five years, and those companies are keen to adopt new technologies to secure a better position in the market.

"More and more small and medium businesses are investing in new technologies, like IP telephony, to raise efficiency and increase their ability to compete. We can see the same trend in China," said Patricia Hume, vice president, Sales, Avaya's Small and Medium Business Solutions group. "As a world leader in IP telephony and services, Avaya helps small and medium businesses s build up highly efficient communications networks at a pace that best suit their needs. We enable them to efficiently, seamlessly, and securely drive their businesses from where it is today to where it needs to be."

IP Office was named a 2003 Product of the Year Award by Internet Telephony magazine, and more than 25,000 IP Office systems have been shipped since its introduction.

"China's fast expanding small and medium business market is of great importance to us," said Mark Wood, Avaya Asia Pacific region sales director. "We have already invested in recruiting Avaya BusinessPartners, and training Avaya engineers in installation and maintenance for IP Office."

Avaya has signed general distributor agreements with two local partners, Shanghai Posts & Telecommunications Equipment co., Ltd. and Laser Computer Co., Ltd., and more than 100 engineers have been Avaya certified.

"We have made great achievements in Asia Pacific markets where we are present, such as Japan, Australia and Korea," said Mark Wood. "With leading technologies, commitment to the market in China and close cooperation with BusinessPartners, Avaya's aim is to be the number one supplier of communications solutions to businesses in China. I am confident that we are in a good position to achieve that goal."

About Avaya
Avaya Inc. designs, builds and manages communications networks for more than 1 million businesses worldwide, including 90 percent of the FORTUNE 500®. Focused on businesses large to small, Avaya is a world leader in secure and reliable Internet Protocol (IP) telephony systems and communications software applications and services.

Driving the convergence of voice and data communications with business applications - and distinguished by comprehensive worldwide services - Avaya helps customers leverage existing and new networks to achieve superior business results. For more information visit the Avaya Web site: http://www.avaya.com or http://www.avaya.com.cn

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