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Avaya Regains Market Leadership in U.S. IP Telephony and U.S. Enterprise Telephony for the Third Quarter of 2005

According to InfoTech: * Avaya regains leadership in U.S. IP Telephony with 22 percent market share * Avaya regains leadership i

BASKING RIDGE, N.J., Dec. 7 /PRNewswire-FirstCall/ -- Avaya Inc., a leading global provider of business communications applications, systems and services, today announced that for the third quarter of 2005 it has regained market leadership in U.S. Internet Protocol (IP) Telephony and U.S. Enterprise Telephony according to InfoTech's InfoTrack for Enterprise Communications, Third Quarter 2005 Report. The report is based on analysis of line shipment data provided by participating companies. The report's measurement for U.S. Enterprise Telephony includes both Internet Protocol (IP) telephony and traditional telephony line shipments, and the U.S. IP Telephony measurement includes IP line shipments only.

With 22 percent of the U.S. IP Telephony market in the third quarter, Avaya showed a three point gain over the previous quarter and a one point lead over the nearest competitor. In U.S. Enterprise Telephony, Avaya gained four points compared to the previous quarter, resulting in a 21 percent share of the market, and is ranked two percentage points above the nearest competitor for the third quarter.

"Avaya moved forward in several key measurements of the InfoTrack report for the third quarter of 2005," said Susan Hobart, vice president and senior program director, InfoTech. "Advances in both traditional telephony and IP telephony line shipments bolstered Avaya's performance in our market share analysis, and the overall industry results reflect strong movement in the business communications market toward the acceptance and implementation of IP telephony."

Longstanding Avaya customer The Seattle Times has experienced the benefits of flexible IP communications networking firsthand. "When it comes to our communications network the stakes are very high," said Leif Haslund, senior telecom systems analyst for The Seattle Times. "With 15 sites that depend on total availability -- news bureaus, contact centers, printing facilities, distribution warehouses -- the ability to cost-effectively and reliably handle communications traffic across the network is crucial. Since moving to Avaya IP telephony solutions, we have enjoyed feature-rich functionality, along with the business continuity benefits and savings from streamlined administration that IP can deliver."

According to the InfoTech report, Avaya also maintained its number-three position in the traditional PBX market, with 24 percent of the lines shipped, representing a gain of seven points over the previous quarter. In addition, the report places the company in the third market position in the traditional Key/Hybrid market, with 17 percent of the market, gaining three points compared with the previous quarter.

"Regaining leadership for the third quarter of 2005 in U.S. IP Telephony and U.S. Enterprise Telephony according to InfoTech is a gratifying achievement," said Michael C. Thurk, Avaya senior vice president and president, Global Communications Solutions. "We are pleased and proud to continue helping our customers migrate to IP telephony and realize the business process benefits that intelligent communications applications can offer as technology evolves to incorporate advanced, next-generation capabilities."

For its fourth fiscal quarter, ended on September 30, Avaya reported that product sales rose 11.5 percent over the previous quarter.

Forward Looking Statements

Certain statements contained in this release may be considered forward- looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may involve risks and uncertainties that could cause actual outcomes and results to differ materially. For a list and description of such risks and uncertainties, see the reports filed by Avaya with the Securities and Exchange Commission, which are available at http://www.sec.gov/, particularly the information contained in Part II, Item 7, entitled "Forward Looking Statements," of our fiscal 2004 Form 10-K and the information contained in Part I, Item 2, entitled "Forward Looking Statements," of our Form 10-Q for the fiscal quarter ended September 30, 2005. 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.

About Avaya

Avaya Inc. designs, builds and manages communications networks for more than one million businesses worldwide, including 90 percent of the FORTUNE 500(R). Focused on businesses large to small, Avaya is a world leader in secure and reliable Internet Protocol (IP) 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 website: http://www.avaya.com/.

Avaya Inc.

CONTACT: Media - Mary Thiele, +1-908-953-6152, [email protected], or
Investor Inquiries - Matt Booher, +1-908-953-7500, [email protected]

Web site: http://www.avaya.com/

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