Comdial announces two major agreements for sales to federal and state government agencies; combined value of up to $3.7 million over three years.

CHARLOTTESVILLE, Va.--(BUSINESS WIRE)--Sept. 12, 1996--Comdial Corp. (NASDAQ NM:CMDL) on Thursday announced that two major three-year agreements for the sale of Comdial DXP digital switches and Impact digital telephones to federal and state government entities have been awarded to one of its preferred dealers.

According to the announcement by Comdial President and Chief Executive Officer William G. Mustain, the agreements, both of which are effective Oct. 1, 1996, represent new government business for the company from a federal region and a state jurisdiction that were not previously purchasing Comdial equipment. The agreements have an estimated combined value to Comdial of up to $3.7 million over three years.

The General Services Administration (GSA) awarded the first of the two agreements for the POTS (Purchase of Telephone Services) contract for the Sunbelt Region, which includes Alabama, Mississippi, Florida, North Carolina and South Carolina.

Under the terms and at the prices specified in the contract, all federal government agencies and branches of the military located within the Sunbelt Region may purchase the Comdial DXP switches and Impact digital telephone systems through the Comdial preferred dealer who will sell, install and service the equipment.

The second agreement awarded was from Louisiana for the state's telecommunications equipment contract. Under the terms of this agreement, which covers three of the four contract regions for all state government offices in Louisiana, the preferred dealer will sell, install and service Comdial DXP switches and Impact digital telephone systems.

Mustain said: "These two agreements represent an extension of our federal and state government business into new geographic areas and demonstrate the growing acceptance of our DXP digital switches and Impact telephone systems in the government sector. The award of these agreements to one of our preferred dealers is further evidence of the ability of the dealers in this organization to deliver high-quality sales, installation and service support."

Comdial is a leading designer, manufacturer and supplier of a broad range of advanced telecommunications products and system solutions based on computer telephony integration.

Comdial's World Wide Web site contains a comprehensive corporate information data base, including product information, the Comdial Corporate Backgrounder, most recent quarterly 10-Q and 1995 10-K, as well as recent media releases. Connect to Comdial's home page from an Internet browser: http://www.comdial.com/.

CONTACT: Comdial Corp.

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