News Release

For Immediate Release:25 Jan 2001

WATERLOO Belgium -

Avaya Inc. (NYSE:AV), a global leader in business communicationssystems, including Customer Relationship Management (CRM)technology, today announced it has won a contract to design andinstall an advanced communications solution for British SkyBroadcasting™s (BSkyB) customer contact centres in Livingston andDunfermline, Scotland. The deal follows BSkyB™s announcement lastyear that it would lead innovation in customer service by investingapproximately US$80 million to upgrade its customer contactfacilities with state-of-the-art technology and processes.

Avaya will install intelligent communications systems throughoutthe upgraded centres, including its Elite call centre package thatenables intelligent call routing and incorporates the latestinteractive voice response systems (IVRs). These IVRs will becomputer telephony integrated with BSkyB's multiple databases,further enhancing, for example, the company's ability to offerfully automated pay-per-view bookings. Avaya's CentreVu Explorerpackage will enable Sky to offer a tailored and highly personalisedservice to its customers by providing agents with the ability torefer immediately to previous call details and requests.

As a world leader in advanced communications equipment for callcentres, Avaya was selected as a key partner for BSkyB's CRMproject because of its industry-proven technology and strengths inenterprise systems. Avaya's technology will facilitate BSkyB'sdrive to deliver exceptional levels of service to its satellitecustomers, which totalled 4.7 million at the end of September2000.

Mike Hughes, Managing Director of Sky Services said: "With thenumber of Sky digital customers expected to rise to seven millionby 2003, BSkyB is committed to responding quickly to rapidlychanging customer demands. Avaya's advanced communications solutionwill make a valuable contribution to BSkyB's drive to leadinnovation in customer service and maintain Sky digital'sindustry-leading levels of customer retention."

On average, BSkyB receives around 135,000 calls a day includingrequests for installation of digital satellite reception equipment,pay-per-view bookings, billing queries and sales. Avaya's contactcentre solution will help BSkyB further reinforce customerrelations through highly sophisticated call handling and theability to monitor and improve its processes for deliveringexceptional customer service.

John Winchester, Avaya Vice President and General Manager, UKand Ireland said: "Contact centres increasingly represent acustomer's primary point of entry into an organisation. In fact,because of the dramatic rise in use of fax, internet, e-mail, andother communications vehicles, what was traditionally known as acall centre can perhaps more appropriately now be viewed as acustomer contact centre. And that contact with the customer mustcontinually reflect the commitment and level of service that willkeep them coming back."

About Avaya
Avaya is a leading provider of communications systems forenterprises, including businesses, government agencies and otherorganizations. Avaya offers converged voice and data, customerrelationship management, messaging, voice multi-service networkingand structured cabling products and services. Avaya is a worldwideleader in sales of messaging and structured cabling systems and aU.S. leader in sales of enterprise voice communications and callcenter systems. Avaya intends to use its leadership positions inenterprise communications systems and software, its broad portfolioof products and services, and strategic alliances with othertechnology and consulting services leaders to offer its customerscomprehensive eBusiness solutions. For more information aboutAvaya, visit its Web site at http://www.avaya.com.

About BSkyB
British Sky Broadcasting is a leading provider of sports, movies,entertainment and news - whose channels are received by over 9million households throughout the UK and Eire. The launch of theUK's first digital television service, Sky digital, on 1 October1998, signaled the start of a new era in British broadcasting. Itremains the fastest, most successful roll-out of any digital TVservice in Europe, attracting 4.08 million customers at the end ofSeptember 2000.

Sky is delivering on its promise to make its compelling contentavailable to consumers at all times - whether they're at home or onthe move. We provide sports, entertainment and breaking news viamobile phones, personal digital assistants and portals includingSky.com and Skysport.com, which have combined monthly pageimpressions totalling over 75 million.

Further information about Sky can be found on the internet at www.sky.com/corporate.