[June 27, 2000]

Lucent Enterprise Spin-Off Will Be Called Avaya

The Enterprise Networks Group soon to be spun off from Lucent Technologies announced that it will be named Avaya, pronounced uhv-EYE-uh. The new name and logo will begin appearing in advertising and on company buildings and vehicles in the coming weeks.

As announced in March, Lucent expects to complete the spin-off by the close of the fourth fiscal quarter of 2000, which ends Sept. 30.

"We chose a name that would set us apart and capture what we're doing with the company - focusing on communications solutions for business customers," said Don Peterson, president and CEO. "Avaya sounds open and fluid-reflecting a company that's open-minded and that provides seamless, effortless interconnections among people and businesses.

The company's new logo is a word mark formed of letters that fit together and enhance one another. Its red color is bright and strong, and honors the company's Lucent Technologies heritage.

The new Avaya will focus on enabling enterprises to succeed in the eBusiness age by providing advanced communications hardware, software and solutions. The company starts out as a worldwide leader in messaging and structured cabling solutions, and a U.S. leader in call centers and voice communications systems. Avaya has nearly one million business customers in more than 90 countries, including more than three-quarters of the Fortune 500.

Avaya has an extensive sales and services force. Almost half a million businesses -- from small, neighborhood shops to large multi-national corporations -- have Avaya service agreements.

In addition, the company offers a portfolio of products to support multi-service network solutions, including its award-winning Cajun Campus LAN switching products and award-winning WAN systems products. Avaya has shipped more than one million LAN switching ports.

"We expect the overall market we're in to grow from about $113.8 billion in 1999 to about $176.6 billion in 2003, a compound annual growth rate of 11.6 percent," said Peterson, "And there are four trends in the marketplace that we believe are leading to significantly higher growth within key segments: the adoption of e-Business strategies by businesses worldwide; a focus on customer relationship management; the growth of businesses with widespread operations and mobile workforces; and the evolution toward converged voice and data networks. We believe we are well-positioned to capitalize on these trends and to serve the growing market for advanced enterprise communications products supporting eBusiness solutions."

Also today, Avaya named key senior executives. As announced previously, Henry B. Schacht, 65, former chairman and CEO of Lucent Technologies and former CEO of Cummins Engine, is chairman of the new company. Donald K. Peterson, 50, former executive vice president and CFO of Lucent, is president and chief executive officer. Peterson has 25 years of experience in the communications industry. Prior to joining Lucent, he served as NORTEL's chief financial officer and president of NORTEL Communications Systems, Inc.

Separately today, Avaya announced a global strategic alliance with Siebel Systems that includes joint development and integration of eBusiness solutions as well as joint marketing and sales teams.

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