Avaya Increases Lead in Global Enterprise Telephony Market

18-May-2006

BASKING RIDGE, N.J. – Avaya Inc. (NYSE:AV) finished 5.5 points ahead of the nearest competitor in global Enterprise Telephony market share for the first quarter, according to Dell ’Oro Group’s IP Telephony Enterprise Report, 1Q06. Avaya completed its sixth consecutive quarter of leadership in this market according to Dell ’Oro, with 20.3 percent of market revenues, exceeding overall market growth. The report’s Enterprise Telephony measurement includes both Internet Protocol (IP) telephony and traditional telephony revenues.

“Pulling ahead of competitors by the largest margin in our company’s history is a milestone for Avaya and reinforces what our customers have been telling us, that Intelligent Communications can positively increase business success,” said Michael C. Thurk, Avaya senior vice president and president, Global Communications Solutions. “By pairing flexible, standards-based networking with advanced applications that integrate communications to help streamline business processes, Avaya is delivering a winning combination for customers.”

According to the report, Avaya also exceeded industry growth in telephony line shipments for the quarter, posting a 3.5 percent increase in line shipments during this period and gaining one point of market share from the previous quarter.

During its most recent fiscal quarter ended March 31, 2006, the company completed its nine millionth IP telephony line shipment. Avaya is a leading global provider of business communications applications, systems and services.

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 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®. 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™, 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.

Contact Information

Mary Thiele

Avaya Inc.

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