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Avaya Extends Lead in Global Enterprise IP Telephony Ports and Global IP Telephony Revenue for First Quarter of 2006

18 May 2006

In the first quarter of 2006, Avaya Inc. (NYSE: AV) extended its lead in global Enterprise Internet Protocol (IP) Telephony Port Shipments and global Enterprise IP Telephony Revenue, leading both measurements for the tenth consecutive quarter, according to Synergy Research Group's 1Q 2006 Enterprise Voice Market Shares Report. Avaya is a leading global provider of business communications applications, systems and services.


The report shows Avaya leading in IP Port Shipments (as defined by Synergy) with 22 percent of the global market for the first quarter of 2006 versus a 20.4 percent market share in the fourth quarter of 2005, finishing 2.5 points ahead of the nearest competitor. Avaya also led in IP Telephony Revenue for the first quarter with 25 percent, widening its lead over the nearest competitor by more than 2.5 points, according to the report.


"Our report shows that the overall global market for IP telephony continues to show momentum, with 28 percent revenue growth over the same quarter last year," said Jeremy Duke, president and CEO, Synergy Research Group. "IP telephony is becoming mainstream for businesses, and Avaya's statistics for the quarter indicate they are taking advantage of the opportunity."


The report also shows Avaya global IP telephony revenues grew 30 percent versus the same quarter last year, and were up 7 percent from the previous quarter. During its most recent fiscal quarter ended March 31, 2006, the company completed its nine millionth IP telephony line shipment.


"Our results show that customers understand the value of Intelligent Communications and are taking steps to make it a reality for their business," said Michael C. Thurk, Avaya senior vice president and president, Global Communications Solutions. "Mobile communications, unified communication, collaboration, contact center applications, and bridging the gap between cellular and enterprise networks, are just a few of the ways our customers are using Avaya solutions to improve business processes and advance their business goals."


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 enhance the efficiency of communications networks.


Avaya offers one of the industry's most comprehensive portfolios of solutions for IP telephony -- Avaya MultiVantage(R) Communications Applications -- with a flexible architecture that helps enable enterprises to design a communications roadmap that supports their business needs. Supported by Avaya Global Services and a network of authorized Avaya BusinessPartners and DeveloperConnection technology partners, the portfolio brings together Avaya's applications for telephony, contact centers and mobility, and features Avaya Communication Manager, the company's flagship IP telephony software. With the suite, businesses have access to a single portfolio of open standards-based applications that extends Avaya's IP telephony software across enterprise operations and employee functions.


Forward Looking Statements


Certain statements contained in this press 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 periodic reports filed by Avaya with the United States Securities and Exchange Commission ("SEC"), which are available at http://www.sec.gov, particularly the information contained in Part I, Item 1, entitled "Forward Looking Statements," of our Annual Report on Form 10-K for fiscal 2005 and the information contained in Part I, Item 2, entitled "Forward Looking Statements," of our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2006. 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.


About the FIFA World Cup and Avaya


As the Official Convergence Communication provider for the FIFA World Cup 2006(TM), Avaya is providing a champion communications network for the World's largest sporting event. The converged network -- that combines voice and data on the same infrastructure -- will connect the 12 host stadiums, the international media centres in Munich, Berlin and Dortmund and the FIFA headquarters in Berlin. Players, coaches, volunteers and fans alike will benefit from the Avaya network that will be instrumental in player and journalist accreditation, the reporting of results, material tracking, accommodation confirmations, transportation, and ticketing among other critical functions. With an estimated 45,000 network connections, 30,000 network devices and over 15 terabytes (or 15,000,000,000 bytes) of data, it is the largest converged communication network ever built for a sporting event.

Source: prnewswire





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