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Avaya Surpasses Seven Million IP Telephony Line Shipments

08-16-2005

Avaya Inc. announced it has passed the seven million line milestonefor IP telephony shipments.Avaya Inc. (NYSE:AV), a leading global provider of business communications applications and services, today announced it has passed the seven million line milestone for IP telephony shipments. The recipient of the seven millionth line is ING Vysya Bank, one of India's leading private sector banks. ING Vysya is capitalizing on the capabilities of the IP enabled Avaya Contact Center Express to launch its 'Customer Service Line' which will ensure 24x7 availability of phone banking service to its customers across India and enable the bank to serve more customers and improve response time.

Avaya also said that its IP line shipments surpassed traditional line shipments this year, further demonstrating Avaya's global momentum in a growing market.

Avaya is the worldwide leader in IP telephony line shipments for first quarter 2005 with a 21 percent share, maintaining that position for the sixth consecutive quarter, according to Synergy Research Group.1

"The adoption of IP telephony by enterprises is growing markedly, as demonstrated by a more than 70 percent year-over-year growth noted in the first quarter of this year," said Jeremy Duke, president and CEO, Synergy Research Group. "And yet, the major part of the adoption curve still lies ahead. Avaya is already well-positioned as a major force in this market."

In 2004, IP telephony accounted for eight percent of the 423 million total enterprise telephony lines installed worldwide, a figure that is increasing rapidly as companies migrate from traditional telephony systems to gain the benefits of converged voice and data. The overall market for IP lines installed is expected to quadruple by 2007.2

"Businesses are beginning to understand the true value of IP telephony lies in the integration of communications applications and business applications," said Don Peterson, chairman and CEO, Avaya. "We call this Intelligent Communications, and it is leading to a redefinition of business processes while creating new business models and greater customer satisfaction."

Intelligent Communications seamlessly connects communications applications and business applications, giving workers, customers and processes the ability to be linked to the right person, at the right time, by the right medium - voice, text and video - over any network. This right-time, right-choice communications gives businesses and workers increased agility through greater speed, responsiveness to customers and control over communications.

Avaya helps businesses like ING Vysya migrate to IP Telephony using a path and pace that aligns with a company's business needs and budget. With a commitment to open standards, and software and web-based technologies, Avaya is building on its heritage as an innovator in voice, IP telephony and contact centers, and its delivery of reliable, secure solutions that work on any network, to lead the transition to this new era of intelligent applications.

The Avaya MultiVantage Communications Applications portfolio, which includes Avaya Communication Manager, the company's flagship IP Telephony software, contact center, messaging, conferencing and mobility applications, enables companies to more easily integrate the business applications and processes that give them a competitive edge.

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

1 Synergy Research Group, Q1 2005 Enterprise Telephony Market Shares, May 17, 2005
2 Avaya analysis from multiple analyst reports.

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