Avaya Signs ?80 Million Three Years Supply Contract With BT



Avaya Signs Pan-European Supplier Agreement with BT for Next Generation IP Communication

GUILDFORD, UK-/13 April, 2005 - Wi-Fi Technology Forum/-Avaya Inc. (NYSE:AV), a leading global provider of business communications software, systems and services, announced it has signed a supplier contract with BT, estimated to be worth up to ?80 million over three years. The deal extends two existing contracts between the two companies - one for the UK and one for the rest of Europe - and combines them into one overarching agreement.

Under the terms of the contract, BT will supply Avaya's portfolio of communication systems and MultiVantage? Communications Applications to its customer network throughout the European Union and some strategic non-EU countries* and also will offer a comprehensive service including installation, maintenance and support.

Tom Craig, director of Convergent Solutions, BT Global Services said, "The agreement with Avaya supports our determination to drive the uptake of IP and next generation communication technology and deliver real business advantages for customers across Europe. IP telephony is now a mature and stable technology that will enable much more effective communication, lower overheads, flexible working and greatly increased productivity."

"In addition, in our experience, companies today are increasingly looking for a single European supplier, capable of offering a single point of contact, in-depth technical expertise and consultancy and a cost-effective and yet consistently high level of service throughout each individual region."

The contract will reinforce BT's ability to offer harmonised pricing, terms and conditions to all customers irrespective of the European countries in which they operate. This will make it easier for BT to respond quickly to customer requirements across markets and enable faster and effective implementations for them. The new all-encompassing contract also serves to bring Avaya into line with other major vendors with whom BT has established similar deals.

Mac Fox, global vice-president of the BT account at Avaya echoed Craig's vision for IP telephony (IPT) in Europe and added, "We are very excited to be collaborating with BT on bringing the true power of converged communication to the European business marketplace. This agreement is also significant in globalising our network of valued strategic partners who can support international customers trading across different markets. We are delighted to expand our remit through this partnership into Europe."

Products available to BT's pan-European customers through the contract include Avaya Communication Manager, the flagship IP telephony system, in addition to other applications such as unified communication software and virtual private networks. Also, BT will be able to supply its customers with Avaya's Customer Interaction Suite of contact centre applications such as voice recording, predictive dialling and Avaya Interaction Center, a multimedia contact centre.

All of these systems and applications will help customers leverage economies of scale and benefits from IP telephony such as lower costs, improved customer service, and greater mobility to meet customer needs.

Currently, BT and Avaya are in negotiation about establishing similar supplier agreements covering other regions.

Notes:

BT Global Services will supply the following systems and applications from Avaya's portfolio: Avaya Communication Manager IP telephony software; Media Servers and Gateways; Modular Messaging software; Customer Interaction Suite of contact centre applications including Avaya Interaction Center; Contact Center Express; Predictive Dialer; Avaya Contact Store; Call Recording; Virtual Private Network; Extension to Cellular; Conferencing.

Avaya's partnership with BT began in April 2000 and has encompassed BT Retail, BT Business Information Systems and BT Openworld.

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

About BT
BT is one of the world's leading providers of communications solutions serving customers in Europe, the Americas and Asia Pacific. Its principal activities include IT and networking services, local, national and international telecommunications services, and higher-value broadband and internet products and services.

For more information, visit http://www.bt.com/aboutbt


* Countries that BT will supply Avaya's portfolio are: Belgium, France, Germany, UK & Ireland, Luxembourg, Czech Republic, Hungary, Italy, The Netherlands, Poland, Slovakia, Austria, Finland, Switzerland and Sweden.