Press Release

U.S. Enterprise IP Telephony Up 73 Percent

Scottsdale, Arizona –(November 29, 2004) According to Synergy Research Group’s newly released Q3 US Enterprise Telephony Market Share report, the US market for IP telephony increased 11 percent sequentially and 73 percent year over year. Nortel tops the US ranking for Enterprise Telephony sales while Avaya and Cisco continue to battle for first place in the US Enterprise IP Telephony market.

“Market acceptance of Enterprise IP Telephony is strongest in the US as the next generation of Enterprise voice technology” said Jeremy Duke, President and CEO, Synergy Research Group. “Those vendors who have prepared to migrate their TDM products to IP as well as introduce IP-only products are well positioned to usher in a new era of multimedia communications.”

The report finds that the introduction of IP Telephony is disrupting the traditional enterprise telephony markets based on TDM, contributing to year over year declines for PBX and KTS sales. Synergy found that international market demand supported a strong surge in PBX sales for Avaya and Nortel, however Synergy does not anticipate this trend to continue.

Table 1. Q3 2004 U.S. Enterprise Telephony Market Share Rankings

1. Nortel
2. Avaya
3. Cisco
4. NEC
5. Siemens

Table 2. Q3 2004 U.S. Enterprise IP Telephony Market Share Rankings

1. Avaya
2. Cisco
3. Nortel
4. Mitel
5. NEC

Detailed data is provided in Synergy’s 77 page report containing 42 U.S. market share tables. It is available for purchase at www.srgresearch.com

Synergy Research Group (SRG) is a market research firm, which specializes in quarterly market analysis, market share, forecasting, and strategic consulting. SRG offers a wide breadth of market research services to the equipment manufacturing, semiconductor, and financial communities. Synergy can be found at www.srgresearch.com.

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The contents of this press release represent SRG’s interpretation and analysis of statistics and information collected from authorized company representatives, industry sources, and SRG estimates. SRG does not guarantee the accuracy or completeness of the statistics or information contained in this release.