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Avaya brings new IP telephony, data networking and applications to small and mid-size businesses

Avaya Inc. (NYSE:AV), a global leader in corporate networking solutions and services, recently announced a new strategic focus for the Small Medium Enterprise (SME) market in Europe, Middle East and Africa, which is forecast to reach USD31 billion in 2003 for communication products and services.

Avaya is focused on delivering converged voice and data communications solutions that continue the company's commitment to SMEs by providing them with networking and communications applications - such as unified messaging, contact centre services, and Internet Protocol (IP) telephony - that large companies are using as tools to help them drive sales results and improve communications.

Building on its strong European SME offering, particularly highlighted in the UK where Avaya holds a leading position in the PBX market, Avaya's strategy is to offer SMEs a range of solutions which enable them to quickly benefit from advanced communications - such as IP Telephony - as a strategic asset to improve their bottom line. Smaller businesses can already obtain Avaya's Network Alchemy as an entry into converged networks. Avaya's INDeX Communication Server is focused on mid-sized companies requiring enhanced networking and contact centre solutions.

Recently, Avaya announced new IP capabilities for its INDeX platform enabling remote locations and desktops to be connected over IP. The range of new INDeX applications includes IP-enabled call centre solutions to support home-based agents, and also offers SMEs the possibility to distribute call centre functionality across multiple locations by linking up their INDeX systems over IP. Additionally, INDeX terminals can be IP-enabled to allow companies to capitalise on efficiency and cost savings through using a single converged infrastructure within the local area network. The new INDeX IP capabilities will also allow similar savings and seamless integration across the wide area for home workers, remote offices and branch offices.

Also announced recently is the Avaya IP Office which is optimised for up to 100 end users and 50 contact centre agents, with expansion up to 180 end users or 75 agents. The new solution joins Avaya's Enterprise Class Internet Protocol Solutions (ECLIPS) portfolio of products, applications and services, and brings the sophistication and robustness of big-business communications to small and mid-sized business customers.

By converging voice and data communications, SMEs can make savings by sending phone calls over an IP network. For those not yet ready to deploy IP telephony, Avaya's IP solutions will enable them to first benefit from highly efficient traditional voice systems while at the same time allowing them to have the infrastructure in place to address future communications needs.
"Avaya is committed to helping small and mid-size enterprises succeed in the customer economy," said Don Peterson, president and CEO of Avaya. "Our diverse portfolio of small and medium enterprise offerings will enable this important and growing market segment to achieve the benefits that converged-communications provides: reliable and cost-effective networking, and the sophisticated applications that used to be the sole province of large companies."

Avaya IP Office is an "all-in-one" solution that can be configured and sized to suit the customer's needs thus allowing SMEs to implement IP communications at their own pace, while preserving some investment in their existing equipment. It provides a rich set of voice features and data handling capabilities, delivering Internet access; full voice and data remote working/access; integrated hub, router, and firewall; and data networking. IP Office can function as an IP- or circuit switched-PBX, complete with office communications applications for a single site; a compact remote office solution ideal for standalone branch office locations; and as a small, integrated contact centre. IP Office can use the same wired and wireless phones as the Avaya INDeX Communication Server and Network Alchemy Argent products.

The complete range of Avaya SME solutions supports an applications suite that offers voice mail, integrated and unified messaging, multimedia collaboration, a PC-based console for attendants, auto-attendant, screen pops, and an extensive array of contact centre management tools. In addition, Avaya supports third party applications through the availability of a Software Development Kit and comprehensive Independent Software Vendor (ISV) programme.

Avaya's INDeX and Network Alchemy systems are already available through Avaya's sales channels. Avaya intends for the Avaya IP Office to be generally available through Avaya and its BusinessPartner network of dealers, including data and convergence Value-Added Resellers, in Europe and selected Asia Pacific countries in 4Q2001 and in North America in 1Q2002. Availability in additional Asia Pacific countries and South America is planned for mid-2002.

 
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About Avaya
Avaya, headquartered in Basking Ridge, N.J., is a leading global provider of communications solutions and services that help businesses, government agencies and other institutions -- including more than 75 percent of the Fortune 500 -- excel in the customer economy. Avaya offers Customer Relationship Management Solutions, Unified Communication Solutions, Hosted Solutions, MultiService Networking Infrastructure, and Converged Voice and Data Networks -- including the company's no-compromise Enterprise-Class IP Solutions (ECLIPS) -- all supported by Avaya Services and Avaya Labs. Avaya is the worldwide leader in unified messaging, messaging systems, call centers and structured cabling systems. It is the U.S. leader in voice communications systems and services. Avaya is an official partner for the 2002 FIFA World Cup™, the 2003 Women's World Cup and the 2006 FIFA World Cup championships. For more information about Avaya, visit its Web site at http://www.avaya.com.

Avaya's estimate based on composite figures collated from various publicly available sources.

This news release contains forward-looking statements regarding the company's outlook for revenue and earnings in the fourth fiscal quarter based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, price and product competition, rapid technological development, dependence on new product development, the successful introduction of new products, the mix of our products and services, customer demand for our products and services, the ability to successfully integrate acquired companies, control of costs and expenses, the ability to implement in a timely manner its restructuring plans, the ability to form and implement alliances, the economic, political, and other risks associated with international sales and operations, U.S. and foreign government regulation, general industry and market conditions and growth rates and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. For a further list and description of such risks and uncertainties, see the reports filed by Avaya with the Securities and Exchange Commission. 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.

For further information:
Gilliane Palmer
+32 2 357 5803
+32 495 597183

Cateline Chapuis-Lévèque
+33 1 40 94 80 23 (office)
+33 6 17 92 92 66 (mobile)

Dina Fakhro
Gulf Hill & Knowlton
+973 533532

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