2. Copyright© 2002 Avaya Inc. All rights reserved Avaya – Proprietary Use pursuant to Company instructions Avaya SMBS Update SMB Solutions at Their Path, Pace, and Choice November 10, 2003 Industry Analyst Presentation On NDA Until Announcement

3. 2 Avaya – Proprietary Use pursuant to Company instructions Focus on Convergence/ Security/ Wireless/ Unified Communication Avaya IP Office - Small Office Edition –Compact platform for 2-28 users –Fast set-up, simple management, wireless voice and data, integral voicemail and out-of-the-box compatibility with the latest broadband services Avaya IP Office - Software Release 2.0 –Support for wireless LAN phones increases productivity in vertical markets –VPN option strengthens multi-site security of IP Office –Power Conferencing/web-based interface slashes SMB conferencing costs –IVR in VoiceMail Pro permits 24x7 customer service –Enhanced installation, remote management supports channel partners –System now scales to 360 users for the growing SMB Update on go-to-market strategy –Microsoft CRM, HP, Service Provider news Whats New Improving Simplicity, Openness, Efficiency and Customer Service On NDA until press release issued GA November 19, 2003, in 10 of our target countries Satisfying SMB business needs today, enabling them to move to IP Telephony at the path and pace of their choosing

4. 3 Avaya – Proprietary Use pursuant to Company instructions Sharp focus: primarily SMBs with <250 employees –Additional focus on small of large < 50 Leading solutions portfolio designed specifically for SMBs –IP Office, Avaya MERLIN MAGIX ® Integrated System, Avaya PARTNER ® Advanced Communications System, INDeX ® System Large installed base of SMB customers –1.2 million SMB communications systems installed Strong leadership position in the traditional and IP SMB markets –2Q 03: #1 U.S. Key Hybrid and #1 U.S. <100 IP market* Rapid growth in Avaya SMB IP telephony sales –20,000 IP Office systems sold since launch in early 2002 Global reach and broad and growing SMB channel coverage –2,500 resellers in 59 countries and growing –Alliances with market leaders like Microsoft and HP We can support SMBs if they grow to large enterprises SMBS is Well Poised to Succeed! 3 Avaya - Proprietary (Restricted) Solely for authorized persons having a need to know pursuant to Company instructions Avaya: Continued Leadership in the SMB Market *InfoTrack for Enterprise Communications, 2Q 03

5. 4 Avaya – Proprietary Use pursuant to Company instructions But the transition to IP Telephony is about CUSTOMER CHOICE Avaya = SMB path, pace and choice Why Avaya? Why IP Telephony? Avaya Solutions Allow SMBs to Reach>IP Telephony Avaya IP Telephony Delivers Business Value: Enhances value: people and processes Extends value: extending existing investments Enables value: enable new business models Enabling SMBs to efficiently, seamlessly and securely drive their business from where it is today to where they need it to be Avaya Value Proposition Message IP Telephony enables SMBs to achieve superior business results by reducing costs, lowering risk, growing revenue

6. 5 Avaya – Proprietary Use pursuant to Company instructions Security & Business Continuity Convergence Implementation & Integration Network & Applications Consulting Maintenance Managed Services Gateways Smart Devices Avaya SMBS Communications Applications Telephony Contact Center Messaging Communication Services Servers Application Development System & Network Management Unified Access Converged Infrastructure Unified Communication Network Infrastructure User Agents Business Applications Avaya Global Services and BusinessPartners Connectivity to All-in -One Solutions All-in-One Solutions The Avaya Communications Architecture For Large Enterprises The Avaya Communications Architecture Open Standards-Based Framework for the Converged SMB

7. 6 Avaya – Proprietary Use pursuant to Company instructions Small & Mid Businesses: Avaya Vision for the Future Converged Infrastructure Communications Applications Unified Access CRM Services Contact Center Choice of Endpoints Wireless, Mobility Management Gateways Servers Unified Communication Security, VPN Ubiquitous access Choice of devices and appliances Devices that interact with each others applications User control Business Applications Vertical Solutions Horizontal Solutions Converged infrastructure offering path, pace, choice Security for voice and data services standard Easy to own, easy to manage Management by exception Auto diagnosis and repair Connecting the right person, in the right place, at the right time, the right way Easy to deploy and own Business applications linked into communications offering a consistent customer experience and higher productivity Pre-connected to minimize systems integration

8. 7 Avaya – Proprietary Use pursuant to Company instructions Avaya IP Office: A Refresher All-in-One Communications Platform Market-proven –Announced Spring 2002 –20,000 sold since launch –Available in major worldwide markets Adapts to needs of growing businesses –Scales from 2 to 360 users –Supports digital, analog, IP appliances –Standalone single-site, networked multi-site or branch office Integrates with existing and evolving environments –Provides choice to the SMB: traditional or pure IP telephony -- or a mix –Traditional and advanced telephony including applications e.g. conferencing, integration with MS CRM, messaging, wireless, contact center Enhancements since launch –Improved services, conferencing, expanded range of end points supported, messaging integration with Microsoft Outlook, contact center solution embracing web chat and email, voice features to appeal to mainstream market, enhanced management Value proposition –IP-ready, feature-rich, breadth of applications

9. 8 Avaya – Proprietary Use pursuant to Company instructions IP Office Release 2.0 and Small Office Edition: Key Benefits Simple New Small Office Edition platform right-sized for sub-20 station market Pre-configured converged communications system Set-up wizards for fast system installation and MACs SNMP alarm management for multi-site networks Open Interoperability with third party voice mail systems using VPIM Interoperates with third party wired and wireless end points Uses standards-based security and management protocols Improved Business Efficiency Online management and collaboration with Power Conferencing Secure Wide Area Networking with standards-based VPN Call handling options now complemented by incoming call priority, IVR and TTS Mobility benefits for specific verticals using Voice over WLAN Enhanced Customer Service 24x7 information availability using IVR and Text-to-Speech More efficient call answering with new Soft Console Call handling methodologies can be fine-tuned to customer expectations

10. 9 Avaya – Proprietary Use pursuant to Company instructions Small Office Executive Home + Home Office Branch Office Collaborative Service Provider Channel Service Provider Network Branch Office Autonomous Small Office Edition: Target Segments SMB Choice Small Office Edition PBX, CRM,Voice Mail, Auto Attendant IP Phones 10/100 LAN VoWLAN Devices WLAN Small Office: All-in-One Converged Solution Analog Phones Digital Phones Cordless Phones xDSLT1/E1PSTNISDN Integral VPN & Firewall

11. 10 Avaya – Proprietary Use pursuant to Company instructions New for IP Office: Wireless LAN Telephony Avaya 3616 Executive Handset Ideal for busy office environments Lightweight design Feature integration with Avaya systems for ease-of-use and low TCO 802.11 standards-compatible Uses LAN-based Voice Priority Server unit to ensure QoS (required for all applications) Avaya 3626 Industrial Handset Designed for heavier usage environments (e.g. warehouses) Push-to-talk walkie-talkie capability Feature integration with Avaya systems for ease-of-use and low TCO 802.11 standards-compatible Uses LAN-based Voice Priority Server unit to ensure QoS (s/w upgrade to 802.11e once ratified) Key Business Benefits Increased choice of functionality Increased usability and convenience Improved handling of calls with suppliers and customers Supports vertical industry needs AVAYA IP Office now supports the Avaya 3616 and 3626 wireless IP phones Same sets as used on Avaya Communication Manager Compatible with todays and tomorrows WiFi infrastructures Open standards support for third party wireless VoIP sets Path, pace, choice in digital or wireless IP solutions Complements our existing traditional DECT (EMEA) & 900Mhz (NA) solutions

12. 11 Avaya – Proprietary Use pursuant to Company instructions Enhances in-store experience Increases staff productivity Provides less hold time for customers Managers are always accessible Eliminates paging delays Text messaging Maximizes efficiency Maximizes uptime and minimize downtime Eliminates paging delays Guaranteed coverage throughout the plant Speeds problem resolution Retail Education Manufacturing Improves learning environment Increases school safety Improves classroom management Promotes parent involvement Better patient care Allows more time for patient care Improves interdepartmental efficiency Eliminates paging delays between nurses and physicians Reduces overhead paging Text messaging integrated with patient monitoring systems Healthcare Improving SMB Efficiency in Vertical Markets Avaya Wireless LAN, Wireless VoIP

13. 12 Avaya – Proprietary Use pursuant to Company instructions VPN Tunnel New: Integral Security and VPN Functionality Open, Standards-Based VPN Integration Key Business Benefits Increased security for mobile work force Makes it easy for staff to work from home without compromising the network 2. Broadband Virtual Office DSL or Cable IP Phone VPN gateways with dynamic IP address support can be deployed anywhere, T3 3. Main/HQ Site Centralized VPN Management IP Office 1.Mobile Work Force Notebook with VPN Client and IP Softphone IP phones PSTN Service Provider Network As a VPN gateway, IP Office encapsulates packets to send over the Internet Avaya DEFINITY ® Server & Avaya MultiVantage Communications Applications Encapsulation A virtual circuit is created to connect 2+ sites together Cisco/Checkpoint/NetScreen Avaya IP Office VPN solution addresses 4 opportunities: 1. Remote workers 2. IP Office to IP Office VPN 3. IP Office to HQ multi-vendor VPN 4. Service Provider VPN 4. Open standards-based solution complementing our integral firewall to give secure networking solutions VPN Tunnel

14. 13 Avaya – Proprietary Use pursuant to Company instructions 22 Power Conferencingin version 2.0 adds: Public/Private TDM/FR/IP VoiceMail Pro Soft Console IP Office Avaya IP Office Conferencing Suite Web Browser Web-based Reservations* Email Confirmation* Voting* Presentation area* Streaming Media* Increased functionality for internal calls Increased usability & convenience Increased functionality for incoming calls Increased employee productivity Business infrastructure improvements / TCO Improved handling of calls with suppliers and customers Key Features Key Business Benefits Real time conference supervision and control Guidance PIN codes Converged IP Telephony & Infrastructure Unified Communication & Mobility R2.0 Ability to set up a Future Conference Web interface for the host to view & change delegate status on line Operator ability to set up an Ad Hoc Conference by pointing and clicking at names on the BLF & phoning external delegates on Soft Console * Regional availability Small Office: 3 parties max IP401 * : 3 parties max IP403/IP406: 64 parties max IP412: 2x64 parties max Host can change participant status to Listen only or Speak & Listen Document to be reviewed e.g. PowerPoint presentation saved in html Web chat and voting communication with conference host Real-time view of participants including voting status New: IP Office Power Conferencing Unified Communication for the SMB

15. 14 Avaya – Proprietary Use pursuant to Company instructions Customer enters 123456 123456 12,000 points Complements existing SMB high touch customer service Simple for SMBs to deploy and manage – visual call flows Open: IVR applications connect to most industry standard databases (using ADO: ActiveX Data Objects and visual SQL query builder wizard) Integrated to IP Office Compact Contact Center (CCC) reporting Attaches data to a call control command e.g. transfer for customer identification Replays database information to caller using Text-To-Speech New: IVR Support for Third Party Databases IP Office Easily Automates Common Call Types Avaya IP Office Public Network IP Office Voicemail Pro Server CustomerDatabase Hello, please enter your account number to check your balance You currently have 12,000 points. To redeem your points, press 1; to ask for a call-back press 2 or simply hang up Improves business efficiency Frees staff, thus reducing costs Increases convenience for customers who need help after business hours Excellent for customers checking order status Key Business Benefits

16. 15 Avaya – Proprietary Use pursuant to Company instructions Installation Tool for reducing repetitive tasks Pre-inspection tools to proactively identify and solve network problems – facilitates smooth install Installation less labor-intensive; reduces risk of human error Import of directories (departments, users) Class of service templates –Call barring –Button assignments Uses most common defaults Off-line system design and configuration Automatic configuration validation Dramatically reduces time to install Moves, Adds, Changes Designed specifically for end users Helps execute changes quickly, including: –Adding new users –Changing class of service –Moving users Easy to add/ modify call routes Diagnostics In-service monitoring and diagnostics –New diagnostics application for BusinessPartners –Standards-based SNMP alarms Reduces configuration time Reduces errors Proactive fault management minimizes downtime Key Business Benefits New services complement existing Avaya network assessment offer New: Installation and Maintenance Tools Designed for Channel, Usability, and Low TCO

17. 16 Avaya – Proprietary Use pursuant to Company instructions IP Office: Enabling SMBs to Evolve At Customer Path, Pace, and Choice IP Office: a simple solution for any SMB –PBX, Internet access, voice mail –PBX –Soft phones –Soft console* –Voice mail –Auto attendant –Unified messaging –Personal numbering –Conferencing,collaboration –Informal contact center application* –Contact center suite* –Contact center messaging apps –Microsoft CRM capability –Multimedia interaction and collaboration* –CTI –IVR* –TTS* –ISV developer program* Or, a feature- and applications-rich all-in-one solution delivering added value – and incremental revenue to the VAR - at the path, pace and choice of the increasingly sophisticated SMB: –Router –Internet access –LAN ports –WAN edge device –Remote access server –DHCP server –Firewall –VPN* –Wireless* –H.323 gateway –H.323 gatekeeper –--QSig* * =chargeable upgrade Pro version of many free apps also available

18. 17 Avaya – Proprietary Use pursuant to Company instructions Future First Half 2004 Today Avaya SMBS Product and Services Roadmap On NDA Until Announcements IP Office Release 2.0 11/19/03: Convergence/ Security/ Wireless/ Unified Communication focus: Small Office Edition Wireless & Wireless VoIP VPN Power Conferencing IVR Expanded ISV activity More communication- enabled business applications including deeper Microsoft CRM integration Enhanced VPN and security SMB security services Expanded and simplified management capabilities Presence-based and mobile productivity applications SIP rollout Web services Leverage Avaya-Motorola- Proxim capability for SMBs IP Office/MS CRM phase two of product integration : –MS CRM availability in EMEA –Deeper integration with Microsoft CRM –On-line help and demonstration functionality HP alliance expansion –Broader set of compliance tested products –Launch of ProLiant and IP Office solution in EMEA

19. 18 Avaya – Proprietary Use pursuant to Company instructions SMBS Strategy Review: Go to Market Open standards reliable and cost effective servers with differentiating applications and appliances Avaya Global Services: Professional Services, Implementation, Maintenance, Managed Services Worlds best partner/supplier with training, pre-sales, marketing and tech support Most competitive and flexible customer financing offers System Integrators Service Providers Converged VARs Traditional Resellers Apps Providers Avaya ECG OEM ISV Vertical market offers SMBs with <250 employees in total and small-of-large or remote offices with <50 employees per location in the U.S., U.K., Germany, Italy, Netherlands, Russia, China, Japan, Korea, Brazil, Mexico

20. 19 Avaya – Proprietary Use pursuant to Company instructions SMBS Channel Update: SPs, HP, ASAP Service Provider success –SBC, Cincinnati Bell, TelMex, PRTC, others HP –On July 22, Avaya announced joint marketing agreement to bundle IP Office with HP ProLiant ML310, ML330 and DL320 servers –Avaya and HP building a common channel; will expand worldwide Avaya Sales Authorized Partner (ASAP) Program –82 new North American recruits: retail, professional services, real estate, medical, manufacturing and government verticals –Newly created Avaya SMBS Vertical Sales Kit and CD supports ASAP program New marketing materials feature Avaya ISV partners and their focused vertical applications Providing BusinessPartners with a comprehensive portfolio and support, for any size SMB, and margins that are truly best-in-class

21. 20 Avaya – Proprietary Use pursuant to Company instructions Since the US product launch in July 2003 –75 MS CRM BPs trained –4 customers in Beta testing –11 sales during controlled introduction of Avaya middleware –Avaya and MS CRM BPs making a good match: Avaya BPs sell the hardware solution with Avayas Compact Contact Center application, (most popular go to market model); allows Microsoft and Avaya BPs to collaborate and provide the customer an end-to-end solution. IBIS, Microsoft Business Solutions Gold Partner, installing Avaya Microsoft integrated solution and porting over their mortgage lending solution application. 31 new contracted North American Microsoft channels recruited through Avaya ASAP program Avaya sponsored the Microsoft Worldwide Partner Conference in New Orleans October 8-11, 2003 Publication of first joint Microsoft and Avaya case study at http://www.microsoft.com/resources/casestudies/casestudy.asp?casestudyid=14315 http://www.microsoft.com/resources/casestudies/casestudy.asp?casestudyid=14315 Channel Update: Microsoft Alliance

22. 21 Avaya – Proprietary Use pursuant to Company instructions IP Office/MS CRM Customer Adams Keegan Expands Customer Services Adams Keegans Challenges Memphis, TN-based integrated HR management company Local and global competition Needs screen pop to allow quicker/more accurate decision making during client service and employee relations Avaya Solution IP Office with Compact Contact Center and MSCRM Adams Keegan gains visibility into all of their touch points with their clients. Whether it be phone, fax, web, or email, all of the touch points are automatically logged in conjunction with current service activities. Results Adams Keegan manages costs, increases speed of service delivery, increases accuracy and speed of decision making. When the company grows, will IP-enable system to decrease cost of infrastructure build out. Case study example Satisfying SMB business needs today, enabling them to move to IP Telephony at the path and pace of their choosing

23. 22 Avaya – Proprietary Use pursuant to Company instructions Clear non-disruptive migration to IP telephony Open standards-based voice, data, VPN, wireless Strong applications portfolio –Integrated Power Conferencing –Compact Contact Center optimized for the SMB –Microsoft CRM and HP strategic partnerships to benefit the channel and the end user –Integral VPN for remote workers and branches –Integrated wireless AP and wireless feature-rich VoIP sets Avaya or partner services: assessment, installation, management Sustained market leadership Satisfying SMB business needs today, enabling them to enjoy benefits of IP Telephony at the path and pace of their choosing Avaya Small and Medium Business Solutions Best Value Telephony at SMB Path, Pace and Choice