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Avaya Extends Its Lead in Global IP Telephony Revenues and Port Shipments for the Third Quarter of 2005


Avaya announced that for the third quarter of 2005 it has been named global market leader in Enterprise Internet Protocol (IP) Telephony Revenues and Port Shipments based on Synergy Research Group's 3Q 2005 Enterprise Voice Market Shares Report.

Avaya Inc., (NYSE:AV) a leading global provider of business communications applications, systems and services, today announced that for the third quarter of 2005 it has been identified as the global market leader in Enterprise Internet Protocol (IP) Telephony Revenues and Port Shipments by Synergy Research Group's 3Q 2005 Enterprise Voice Market Shares Report.


The report shows Avaya advancing its lead in IP Port Shipments (as defined by Synergy) from 21 to 22 percent of the global market compared to the previous quarter. In addition, according to Synergy's analysis, the company's share of global IP Telephony Revenues rose from 23 percent to 25 percent. These figures represent the largest percentage increases reported for any of the companies included in the study.


"Avaya continues to maintain leadership in key Enterprise IP telephony markets, including a strong increase in IP phone shipments," said Jeremy Duke, president and CEO, Synergy Research Group. "As the numbers show, Avaya continues to successfully migrate their customer base to IP and remains a competitive powerhouse in the face of traditional and new competitors."


For its fourth fiscal quarter, ended on September 30, Avaya reported that product sales rose 11.5 percent over the previous quarter, and announced major IP telephony projects with Allstate and ABN AMRO. During the quarter, the company also completed its seven millionth IP telephony line shipment, with nearly one million IP port shipments in the fourth quarter alone. Sales of Avaya's IP telephony solutions and software now exceed its sales of traditional telephony equipment.


"We're very pleased with our continued leadership in the competitive global market for IP telephony," said Michael C. Thurk, Avaya senior vice president and president, Global Communications Solutions. "The fact that many of our customers are able to simply upgrade their system software and re-use existing equipment, such as desktop phones, is making the prospect of migration to IP telephony increasingly attractive as they begin to realize the tangible business benefits and advantages of intelligent communications."


IP telephony is software-based technology that uses Voice over Internet Protocol (VoIP) to transmit voice over a data network. Companies are adopting this rapidly expanding technology to help reduce costs and take advantage of advanced business communications applications that foster intelligent communications for improved business processes and enhance the efficiency of communications networks.


Avaya offers one of the industry's most comprehensive portfolios of solutions for IP telephony - Avaya MultiVantage® Communications Applications - with a flexible architecture that helps enable enterprises to design a communications roadmap that supports their business needs. Supported by Avaya Global Services and a network of authorized Avaya BusinessPartners and DeveloperConnection technology partners, the portfolio brings together Avaya's applications for telephony, contact centers and mobility, and features Avaya Communication Manager, the company's flagship IP telephony software. With the suite, businesses have access to a single portfolio of open standards-based applications that extends Avaya's IP telephony software across enterprise operations and employee functions.


Forward Looking Statements

Certain statements contained in this release may be considered forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may involve risks and uncertainties that could cause actual outcomes and results to differ materially. For a list and description of such risks and uncertainties, see the reports filed by Avaya with the SEC, which are available at, particularly the information contained in Part II, Item 7, entitled "Forward Looking Statements," of our fiscal 2004 Form 10-K and the information contained in Part I, Item 2, entitled "Forward Looking Statements," of our Form 10-Q for the fiscal quarter ended June 30, 2005. Avaya disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


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 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:

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