AVAYA AND IBM FORM ALLIANCE TO OFFER CRM SOLUTIONS.

Avaya Inc. and IBM have formed a global strategic alliance to integrate Avaya's Customer Relationship Management (CRM) Solutions with IBM's middleware, eServer* technology and e-business solutions.

This agreement represents a joint commitment to pursue the worldwide CRM applications and infrastructure market that is growing from $6.2B in 2000 to over $14B by 2005 according to IDC. IBM and Avaya have developed CRM solutions for IBM's e-business solutions portfolio, with the two firms collaborating in product development, marketing, sales and services. The resulting CRM contact center solutions will enable businesses to more effectively manage customer interactions, deliver on commitments, and measure and act on the results of those interactions.

Avaya is optimizing its products to perform on Java J2EE standards for web-based enterprise application development. This includes the IBM WebSphere Application Server* and IBM DB2* database software running on AIX* and NT, the operating systems for the IBM eServer* pSeries* and xSeries* products. Avaya will promote IBM e-business infrastructure products as technologies of choice for its customers.

"Avaya's agreement with IBM is part of a growing relationship that is good for our mutual customers," said Don Peterson, chairman and CEO of Avaya. "It extends the reach and the scope of our CRM solutions, and through the combined core competencies of our two firms, customers can expect solutions they can trust, that reach the market faster and that help them do more with their existing e-business infrastructure."

Rob Saultz, VP CRM business development and strategy of global solutions, IBM, said, "Our goals include providing the highest level of functionality and return on technology investment to CRM customers. Incorporating Avaya's CRM solutions into IBM's e-business portfolio of products and services will offer customers greater flexibility in selecting the end-to-end CRM solution best suited to their requirements."

The Avaya-IBM alliance builds on an agreement between the two firms announced in September 2001. Under the agreement, IBM Global Services has developed consulting and implementation services to complement various Avaya products and services, including unified communications, CRM solutions and web-based e-commerce applications. A joint development program to create a Lotus Notes-compatible version of Avaya Unified Messenger -- an application for message management -- is well underway.

Avaya and IBM have had a number of customer successes, including contact center outsourcer SITEL, who is currently engaged with a major automobile manufacturer to consolidate numerous 800 numbers and call centers and to implement a systems infrastructure capable of performing all customer contacts with new levels of speed and dependability.

Doug Pontious, business unit president, SITEL, a contact center service provider, adds: "By partnering with Avaya and IBM, SITEL is able to provide its client base with a fully integrated CRM platform that transforms standard customer service transactions to valued customer care interactions. The resulting enhanced customer relationships continue to drive increases in lifetime customer enthusiasm -- a top priority for most service-oriented companies."

About Avaya CRM Solutions

The Avaya CRM solutions that will become part of IBM's e-business portfolio enable businesses to communicate effectively and to share information throughout their enterprise. They include:

-- Interaction Management solutions that allow companies to communicate with customers over a variety of communication mediums, including the Internet, email, phone, web chat, web call back, voice mail and fax.

-- Commitment Management solutions that help companies deliver on their promises to customers by automating predictable actions and repeatable business processes, while delivering communications throughout an organization to meet desired customer service levels and business objectives.

-- Business Intelligence solutions that offer access and insight into mission-critical business data, helping companies make strategic decisions about service, communications and marketing initiatives.

According to market research by Gartner, Avaya is identified as one of the world leaders in contact centers. The firm has more than more than 20,000 contact center customers throughout the world, backed by more than 700 professional services consultants.

About IBM PartnerWorld for Developers

Software application developers receive support from IBM's PartnerWorld for Developers (http://www.developer.ibm.com/) -- a worldwide program designed to help software developers reach broad markets, lower their costs of doing business, and take their products to market faster.

IBM can be found on the World Wide Web at http://www.ibm.com/.

About Avaya

Avaya Inc, headquartered in Basking Ridge, N.J., is a global provider of voice and data networks as well as communications solutions and services that help businesses, government agencies and other institutions -- including more than 90 percent of the FORTUNE 500 -- excel in the customer economy. Avaya offers Customer Relationship Management Solutions, Unified Communication Solutions, Service Provider Solutions, MultiService Networking Infrastructure, and Converged Voice and Data Networks -- including the company's no-compromise Avaya Enterprise-Class IP Solutions (ECLIPS) --all supported by Avaya Services and Avaya Labs. Avaya is the worldwide leader in unified messaging, messaging systems, call centers and structured cabling systems. It is the U.S. leader in voice communications systems and services. Avaya is an official sponsor for the 2002 FIFA World Cup, the FIFA Women's World Cup 2003 and the 2006 FIFA World Cup tournaments.

Avaya can be found on the World Wide Web at http://www.avaya.com/.

For more information, call 408/577-7753.