Comdial Subsidiary Array Telecom Corp. Receives $1 Million Order for Internet Telephony Gateways.

CHARLOTTESVILLE, Va.--(BUSINESS WIRE)--Oct. 13, 1998--

Long Distance Company to Expand Network of Array Gateways

Comdial Corporation (Nasdaq: CMDL) announced today that its wholly owned subsidiary, Array Telecom Corp., received its largest single order to date for its VoIPgate carrier class Internet Protocol (IP) telephony gateways.

Prepaid Cellular Services, Inc. (Atlanta, GA) placed an order valued at over $1 million for Array Telecom gateways as part of its plan to build an international network of IP gateways to support its prepaid phone card business. Prepaid Cellular intends to deploy the units at the rate of three gateways per week, beginning in the fourth quarter of this year. Comdial believes this is one of the largest single orders ever placed for IP telephony gateways.

In announcing this significant sales breakthrough, William E. Porter, acting CEO and President of Array Telecom Corp. and Comdial Executive Vice President said, "Prepaid Cellular's decision to use VoIPgate is evidence of the product's quality and performance. The decision validates our initial IP telephony strategy of targeting next-generation telephone companies as early adopters of this technology. This contract, plus the enthusiasm shown by several Fortune 1000 companies, are strong indicators of the value of our recent acquisition of Array Telecom. We are very confident that the market is ready to accept IP telephony from a company with state-of-the-art IP technology and the experience and capacity to satisfy the telephony expectations of its customers."

Reginald Ibison, Director of Operations and Technology Development at Prepaid Cellular Services, explained, "We were sold on the technology, quality of service, and responsiveness of Array Telecom's gateway product and engineering staff when we selected Array over several competitors about a year ago. The acquisition by Comdial gave us added assurance and confidence that the required scale in production, assembly, support and pricing was now present to meet a more aggressive deployment of our network."

Prepaid Cellular Services is an international long distance company dedicated to using the newest and most advanced combination of communications and software technologies for servicing companies worldwide. It complements this high technology network consisting of Array Telecom gateways, Tandem computers, and AG Communications software, with a worldwide distribution network consisting of 14 marketing associates, 26,000 agents, and 13,000 retail locations, expanding to 100,000 in the future.

This order augments the five Array Telecom VoIPgate gateways Prepaid Cellular has already installed in Atlanta, New York, Mexico, and Brazil and signals the company's stepped up aggressiveness in deploying an extensive international network of gateways over the next 24 months. VoIPgate is offered as a turnkey system, or as a software-only solution. Prepaid Cellular ordered the turnkey T-1 solution for its network.

Array Telecom Corp., a Comdial company, is a provider of carrier-class and enterprise IP telephony gateway products. 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, Array Telecom and Prepaid Cellular Services, Inc. please visit their web sites http://www.comdial.com, http://www.voipgate.com, and http://www.prepaid-cellular.com.

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 statement made by, or on behalf of, the Company.