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Avaya Demonstrates Substantial Growth in European IP Telephony Market in Third Quarter of 2005

According to Synergy Research Group: Avaya increased its EMEA IP telephony port shipments and revenues by a quarter in the three-month period; Avaya increased its market share to take the #2 spot in the EMEA enterprise IP Telephony market

For Immediate Release: 24-Nov-2005

FRANKFURT, GERMANY -
Avaya Inc., (NYSE:AV), a leading global provider of communications applications, systems and services, today announced that it substantially increased IP telephony shipments in Europe, the Middle East and Africa (EMEA) in the third quarter of 2005, according to a recent report by industry analyst firm Synergy Research Group¹. In the three months from July to September, Avaya increased the number of IP telephony ports shipped, and corresponding revenues, by a quarter. This strong growth moved it into the number two position with nearly 22 percent market share measured by ports and more than 24 percent measured by revenues.
 
"Avaya is achieving significant momentum in the EMEA enterprise IP telephony market, producing strong market share gains in the third quarter," said Jeremy Duke, President and CEO, Synergy Research Group. "The acquisition of Tenovis demonstrated its commitment to the EMEA region, and the numbers show that Avaya is successfully leveraging the resources of both companies to migrate its customers to IP telephony."
 
"We are committed to investment protection and choice for our customers," said Dave Johnson, Avaya President for EMEA. "Our IP Office platform now supports Tenovis Integral phones, providing an enhanced migration path for customers upgrading to IP telephony. Recent agreements with BT, Dimension Data, Equant, SITA SC and Telecom Italia also provide new options for customers who want to buy IP telephony products and services."
 
Avaya customer, David France, head of IT, B·A·R Honda said: "By migrating to IP telephony we have delivered significant time savings and improved communication for our team members and partners. With over 19 races each year, the world of Formula One is extremely fast-paced on and off the track so the need for effective communication is critical. Team members need to be able to communicate with each whether they are at the factory or on the race track."
 
During the three months ending September 30, 2005, Avaya completed its seven millionth IP telephony line global shipment, with nearly one million IP port shipments in the fourth quarter alone.
 
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 to enhance the efficiency of communications networks.
 
¹The full Synergy Research Group report, entitled "Q3 2005 Enterprise VoIP EMEA Market Shares," covers the EMEA enterprise voice market, providing market share data for Enterprise VoIP Gateways and Enterprise Telephony - covering both IP and TDM telephony. Market share for IP telephony is given in terms of ports and revenues for LAN telephony, Converged Telephony and IP Phones. The data in this announcement was drawn from port and revenue data for EMEA enterprise IP telephony as a whole.
 
For more information or to purchase a copy of the report, please contact Synergy Research Group at www.srgresearch.com.
 
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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Hannah Kirkman, Media Relations
Avaya
+44 1483 308083
Hannah Kirkman, Media Relations

Matt Booher, Investor Relations
Avaya
+1 908 953 7500
Matt Booher, Investor Relations
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