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  AVAYA EXPANDS DISTRIBUTION CHANNEL TO ACCELERATE SALES OF CONVERGENCE PRODUCTS
 
  Modifies Agency Agreement with Southwestern Bell to Grow Its Reseller Profile

Avaya (NYSE:AV) today announced that it will expand its current reseller network for its award-winning Enterprise-Class IP Solutions product portfolio in order to accelerate distribution of the company’s converged voice and data products for mid-sized companies.

"In order to accelerate the sales of our converged voice and data offers, we are realigning our distribution strategy and adding resellers who are strong in the convergence space, while at the same time, expanding market coverage," said Edison Peres, Avaya’s vice president, BusinessPartner Sales. "As part of this effort, we are modifying some of the contracts we entered into when we were part of Lucent Technologies."

Chief among these agreements is Avaya’s agency agreement with Southwestern Bell Telephone Company, a subsidiary of SBC Communications Inc. The agreement, inked in March 1997, gave Southwestern Bell exclusive rights to sell Avaya’s DEFINITY® Enterprise Communications Systems and other products for mid-sized enterprises in its five-state region of Arkansas, Kansas, Missouri, Oklahoma and Texas. As of March 9, 2001, SBC and Avaya have mutually agreed to discontinue the agreement, which was limited to voice products. Avaya can now add new resellers in the territory. Avaya also will continue to serve mid-sized customers in Southwestern Bell’s region through its direct sales force and existing resellers.

The two companies’ distributor agreement for small-business products, such as the PARTNER® Advanced Communications System and MERLIN MAGIX™ Integrated System, remains unchanged.

"SBC remains a very important customer of Avaya’s, and we expect that relationship to continue," said Jerome Murphy, Avaya’s area sales vice president for Strategic Partners. "In fact, over the past three years, SBC has purchased several Avaya Call Center solutions for its key customer care centers globally."

"Evolution is going on in distribution as well as in the products," said Peres. "We’re investing in our sales channels with training and certification programs that will make them stronger, encourage new resellers to join us, and enable them to better serve our customers and succeed."

Avaya, headquartered in Basking Ridge, N.J., USA, is a leading provider of communications systems for enterprises, including businesses, government agencies and other organizations. Avaya offers converged voice and data, customer relationship management, messaging, voice multi-service networking and structured cabling products and services. Avaya is a worldwide leader in sales of messaging and structured cabling systems and a U.S. leader in sales of enterprise voice communications and call center systems. Avaya intends to use its leadership positions in enterprise communications systems and software, its broad portfolio of products and services, and strategic alliances with other technology and consulting services leaders to offer its customers comprehensive eBusiness solutions. For more information about Avaya, visit its Web site at http://www.avaya.com.



For more information reporters may contact:
Richard Larris
Avaya Inc.
908-953-2219 (Office)
larris@avaya.com

908-451-3093 (Mobile)


Barbara Burgess
Avaya Inc.
908-953-3348 (Office)
barbarab@avaya.com

201-400-1451 (Mobile)