Comdial Releases ctvoice IP Telephony Gateways.

CHARLOTTESVILLE, Va.--(BUSINESS WIRE)--Oct. 16, 1998--

Organizations representing over 1,000 potential gateways

now test driving ctvoice

Comdial Corporation (Nasdaq: CMDL) today announced that ctvoice, a turnkey Internet Protocol (IP) telephony gateway designed specifically for installation and use by businesses with multiple locations, is now available for commercial delivery. Ctvoice, jointly developed by Comdial and its Toronto-based subsidiary, Array Telecom Corp., offers the power of a full-featured IP telephony solution on a scale ideal for small to medium-sized offices linked over a wide area network.

Evaluation units are installed with potential customers that collectively offer opportunity for the sale of over 1,000 gateways. These firms and organizations represent the health care, retail, business services, and wholesale distribution sectors. All are large multi-location organizations with corporate Intranets.

Ctvoice provides businesses with high-quality, real-time voice and fax communications over any IP network -- both the public Internet and private Intranets. The integrated hardware/software solution provides the greatest flexibility and ease-of-use available in IP telephony today, and is scalable from 2 to 60 ports. Organizations can typically expect payback of their original investment in 3 to 12 months, depending on their level of long distance voice and fax traffic.

William G. Mustain, Comdial President and CEO said, "We are very pleased with the progress of our IP telephony initiatives. Comdial's basic IP marketing strategy is to drive the carrier business through our Array Telecom subsidiary and to drive the enterprise business through Comdial's national accounts team. We have recently announced substantial new contracts with next-generation telephone companies for Array's carrier-focused gateway and today we are announcing that ctvoice, our enterprise solution, is ready to start saving our customers money and helping them become more productive." Mustain added, "We remain convinced that IP telephony is the wave of the future in our industry, and Comdial's decision to become one of the handful of companies that controls this core technology positions us well for exciting opportunities on the horizon." The market research firm of Frost & Sullivan projects the world market for IP telephony equipment will exceed $3 billion in 2002.

Comdial is a provider of integrated communications solutions for small and mid-size organizations. The Company's broad product line includes digital switches, wired and wireless phones, call center hardware and software, voice processing, and IP telephony gateways. For more information about Comdial, please visit our web site at http://www.comdial.com. For the latest news and financial information via fax, call Comdial's Investor Documents on Demand at 1-800-COMDIAL.

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 1998 and beyond to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company.