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Avaya To Purchase Spectel for Approximately $103 Million

  • World leader in audio conferencing, Spectel expands Avaya's IP communications software portfolio

Avaya announced an agreement to purchase Spectel, the world leader in audio conferencing solutions*, for approximately $103 million in cash.

Avaya Inc. (NYSE:AV), a leading global provider of business communications software, systems and services, today announced an agreement to purchase Spectel, the world leader in audio conferencing solutions*, for approximately $103 million in cash.

Spectel has approximately 210 employees and offices in Dublin, Ireland, Andover, Massachusetts and other strategic locations. The company currently serves more than 500 customers globally.

The transaction is expected to close within 60 days and is subject to regulatory approval, Irish laws and customary closing conditions.

This acquisition will enable Avaya to continue to expand its capabilities in conferencing, which is a core business communications technology. Building on a relationship of more than four years between the companies, Avaya will continue to serve the enterprise market with Spectel's on-premise and service provider conferencing solutions.

Avaya also plans to integrate Spectel technology with its own market-leading Internet Protocol (IP) communications applications suite to provide businesses with expanded converged conferencing capabilities in the future. Converged conferencing brings together Web, video, audio and data conferencing on an IP network. Demand for converged applications is expected to rise with the adoption of IP telephony, which is predicted to be a $9.4 billion market in 2008**.

"We've worked with Spectel for years and we've implemented their solution in our own operations, so we know firsthand and through our customers that Spectel's technology is first-rate," said Don Peterson, chairman and CEO of Avaya. "As businesses take advantage of the new types of applications that IP telephony can provide, such as converged conferencing, we believe the addition of the Spectel team and technology will help us accelerate the development of solutions that can transform work processes and deliver measurable competitive advantage."

IP telephony transmits voice as data packets on the network, which can streamline the development of applications that combine voice and data information in business processes. In the case of conferencing, for example, if a company's loan processing software indicates that a high-value contract has stalled, then a communications-enabled process could automatically schedule and launch a conference call between the project team to resolve the issue, rather than waiting for a series of alerts to result in action.

Spectel's software-based solutions are designed using industry standards, which makes them well-suited to integrate with systems from a variety of vendors. This open, standards-based approach can ease development of converged conferencing solutions in cooperation with other industry leaders. The flexible solution can be easily and cost-effectively scaled to serve enterprises large and small and global service providers. Spectel offers enterprise on-premise, managed on-premise and service provider solutions, including applications for advanced services, such as integration with other productivity software suites, sophisticated operator support functions and wireless capabilities.

"This is an exciting opportunity for our customers and our employees," said Gerard Moore, CEO of Spectel. "Avaya has a vision for the future of conferencing in a broader context of communications-enabled business processes, and they have the talent, strategy and commitment to help businesses realize the benefits of effective conferencing today while providing a path to valuable future capabilities."

About Avaya
Avaya Inc. designs, builds and manages communications networks for more than one million businesses worldwide, including over 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:

About Spectel
Spectel is the market-leading provider of integrated conferencing solutions for conferencing service providers and enterprises worldwide. The company's award-winning voice and web conferencing platforms, applications and professional services facilitate real-time communication among business users. Spectel's customer base includes leading global conferencing service providers and Fortune 500® companies. These customers have selected Spectel for its commitment to quality, innovation, reliability, and usability. Investors in the company include Investcorp.

Spectel has offices in Dublin, Ireland, Andover, Massachusetts and other strategic locations. For more information, please visit the Spectel Web site:

* Frost & Sullivan, World Audio Conferencing Bridge Market, 2003
** Synergy Research Group, Q1 2004 Enterprise Voice Worldwide Forecast

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