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Avaya Now the #1 Driving Force in IP Telephony in Asia Pacific

06-14-2005

Avaya Inc. announced that it has been presented with theprestigious Enterprise IP Telephony award by research firm, Frost& Sullivan.Avaya Inc. (NYSE:AV), a leading global provider of business communications applications, systems and services, today announced that it has been presented with the prestigious Enterprise IP Telephony award by research firm, Frost & Sullivan. According to the latest official numbers just released, Avaya leads the IP Telephony (IPT) market in Asia Pacific, which is estimated to be over USD636 million in 2004, with a 27.1 per cent market share, a significant jump in comparison with the closest competitor who lost 11 per cent market share in the same period. Avaya is also the top IPT performer in eight out of 13 countries in the region.

This growth is the result of a concerted focus by Avaya Asia Pacific's sales team to bring IPT solutions to its customers. In 2001, Avaya had a mere 3.9 per cent market share in IPT. Seeing the potential benefits that companies in Asia could derive from IPT solutions, Avaya reinvented its sales strategy to focus on delivering innovative IPT applications to vertical markets including the banking, finance & insurance, government, manufacturing & logistics, travel and hospitality industries. As a result, IPT has contributed high growth in Asia Pacific revenues, and Avaya has now displaced competitors to become the leading IPT vendor in Asia Pacific.

Leading banks such as UOB, DBS and OCBC and Kyobo Life Insurance, for instance, have benefited from IPT solutions. Barriers to distance, country and organization are eliminated through IPT, and substantial cost savings are enjoyed through server consolidation and resource pooling, yielding acquisition savings of 30 to 35 per cent and lowered maintenance and support costs by 12 to 15 per cent. The advanced logic and intelligent routing provided by IPT solutions also provides greater efficiency levels while delivering 3 to 5 per cent in operational savings.

In other areas, government bodies in Thailand and Philippines have implemented Avaya IPT solutions to enhance their e-government portals by converging various communication media such as contact centers, web and email for the general public. Greater productivity and efficiency in citizen services is ultimately provided by the IPT solutions, which streamlines the flow of information, allowing public sector institutions to focus on core responsibilities. In addition, the Avaya solutions offer a high level of security and continuity across the public sector, which is critical for public safety, national security and emergency response mechanisms.

As part of the IPT implementation strategy, Avaya provides a roadmap for its customers to protect their current network investments. They assist new customers; while enabling its traditional installed base to migrate onto IPT at their own pace. As companies move into IPT, they will see cost savings across the entire organization and greater competitiveness.

"Avaya has demonstrated strong market penetration in the IP Telephony market in the last four years. In 2004 alone, the company grew its IP Telephony revenues from USD76 million to USD172 million. This represents a phenomenal growth clearly positioning Avaya as a leader in this segment," said Manoj Menon, Partner at Frost & Sullivan. Menon went on to explain, "Avaya's recent strategic shift in direction and roadmap will help businesses take a dramatic next step, the transition to a new era of intelligent communications will set the company apart."

Avaya's IP Telephony is a software-based technology that uses voice applications over any data mobile network and carrier's WAN technologies. Businesses of all sizes are adopting this rapidly emerging technology which includes features such as mobility; communicating through different means such as mail, voice mail, telephone; call forwarding; conferencing; voice messaging; and other applications to enhance the capability of their communications network and reduce costs.

"Today, forward-thinking and technologically savvy companies are using Avaya technology to gain a competitive edge and to build an infrastructure for future growth. We have been working with enterprises in Asia Pacific to offer robust and high-performance IP solutions," said Mark Leigh, President of Avaya Asia Pacific. "This region is especially significant from a business standpoint since Asian companies in countries like Japan, South Korea, Australia and Singapore, are traditionally early technology adopters while countries such as China leap frog to the latest technology to reap the significant benefits. Our success in helping and supporting customers to enable IP Telephony and business communications applications will continue to drive our market leadership."

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: http://www.avaya.com

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