Comdial Corporation Announces Sale of American Phone Centers, Inc.

Business Editors

SARASOTA, Fla.--(BUSINESS WIRE)--May 7, 2001

Comdial Corporation (Nasdaq:CMDL) announced today the completion of the sale of its subsidiary, American Phone Centers, to King Technologies, Inc.

American Phone Centers, based in Charlottesville, Virginia, has been the authorized service center for the repair, refurbishment, and resale of Comdial products. The sale of American Phone Centers to King Technologies included the company's inventory, equipment, excess products, discontinued products, and the American Phone Centers trade name.

In addition to the sale of the subsidiary, Comdial and King Technologies entered into two ancillary agreements: a Repair Agreement and a Discontinued Products Agreement. Under the Repair Agreement, American Phone Centers will provide service and support for out-of-warranty Comdial products. The Discontinued Products Agreement authorizes American Phone Centers as the Exclusive Authorized Distributor to refurbish and sell discontinued Comdial products. Under this Agreement, Comdial will receive royalty payments on the sale of all discontinued Comdial products sold by American Phone Centers.

"I am extremely pleased that we have concluded the sale of this subsidiary and entered into the two additional agreements with King Technologies," said Nick Branica, President and Chief Executive Officer of Comdial. "King Technologies is well known in our industry and has been providing equipment repair, technical support and sales for telecommunications products since 1988. We are happy that they will provide repair for Comdial's out-of-warranty and discontinued products and continue to make available parts and service for our discontinued product lines. The sale of this subsidiary is a further step in our plan to focus our activities on developing and providing our customers with state-of-the-art, converged voice and data communications solutions. This transaction will assist us in our objective of improving cash flow."

Mr. George King, Chairman and CEO of King Technologies, Inc. said, "King Technologies is very excited to have concluded the acquisition of American Phone Centers. We are elated to have been chosen by Comdial to perform these activities. We have built our business in the areas of Repair, Refurbishing, Product Support, Manufacturing, and Sales of Communications Products since our inception in 1988 and have realized phenomenal growth throughout the years. This step further enhances our marketing plans and will greatly assist us in meeting our aggressive growth objectives. American Phone Centers, a subsidiary of King Technologies, Inc., will remain in the Charlottesville, Virginia, area at 120 Ray's Ford Road, Earlysville, Va. 22936, a 32,000 square foot facility. We will retain all current APC employees."

About Comdial

Comdial provides integrated communications solutions that address the needs of the business environment. Comdial is committed to researching and developing leading edge, fully integrated communications solutions and customer applications for small to medium-sized businesses, government, assisted living, hospitality and call centers. For additional information about Comdial and its communications solutions, please visit our web site at www.comdial.com

King Technologies, Inc.

King Technologies, Inc. (KTI) will mark its 13th anniversary in August of 2001. The company was founded by Mr. George King to address an emerging service and resale market for telecommunications systems and components. In 1995, KTI was ranked 176th on Inc. Magazine's List of the 500 fastest growing companies. KTI is a privately held company and is located at 805 Industrial Park Dr., Trenton, TN 38382.

KTI's web site can be reached at www.kingtechnologies.com APC's web site can be reached at www.americanphone.com

KTI specializes in providing repair and support services on an outsource basis. KTI has a solid reputation for quality and has support agreements in place with several major manufacturers. KTI provides services to some 10,000 customers worldwide.

KTI will continue to operate American Phone Centers, Inc. as the only Authorized Comdial Repair Center and the Exclusive Authorized Distributor of Discontinued Comdial products.

This release contains forward-looking statements that are subject to risks and uncertainties including, but not limited to, the impact of competitive products, product demand and market acceptance risks, reliance on key strategic alliances, fluctuations in operating results, delays in development of highly complex products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. These risks could cause the Company's actual results for 2001 and beyond to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company.