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Avaya Leads Global Enterprise Telephony Market for 2005

Avaya Inc. (NYSE: AV) has strengthened its global market leadership in Enterprise Telephony according to Dell'Oro Group's IP Telephony Enterprise Report, 4Q05, finishing ahead of competitors in the fourth quarter of 2005 and capturing market leadership for the full year. This measurement includes both Internet Protocol (IP) telephony and traditional telephony revenues. Avaya is a leading global provider of business communications applications, systems and services.

The report places Avaya as the leader in Enterprise Telephony, with 19 percent of the market in the fourth calendar quarter and 19.3 percent for the year, completing the year more than 3 points ahead of the nearest competitor.

"The Dell'Oro report recognizes Avaya as the clear leader in enterprise telephony revenues for 2005, which shows that our flexible approach to IP telephony and the value of our advanced applications for Intelligent Communications have resonated with customers," said Michael C. Thurk, Avaya Senior Vice President and President, Global Communications Solutions. "Our customers continue to migrate to IP telephony, and the ability to simply upgrade Avaya software and re-use existing equipment is making the prospect of IP telephony even more attractive. As companies see the results that improved communications can achieve with their customers, the business benefits speak for themselves."

For its fiscal quarter ended on December 31, 2005, Avaya reported that revenues rose 8.8 percent over the year ago quarter, including the first full quarter contribution from the company's acquisition of Tenovis in Europe. During the quarter, the company also completed its eight millionth IP telephony line shipment, with nearly one million IP port shipments in the quarter alone.

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 SEC, which are available at http://www.sec.gov, particularly the information contained in Part I, Item 1, entitled "Forward Looking Statements," of our fiscal 2005 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 December 31, 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.

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