Vodavi Expands and Enhances XTS-IP Applications.

PHOENIX -- Vodavi Technology Inc. (NASDAQ: VTEK), a provider of traditional and next-generation business telecommunications solutions, today announced enhanced IP capability for the XTS-IP and XTSc-IP converged family of communications products. Ideal for telecommuter, remote and traveling worker applications, the XTS-IP platform offers enterprise customers the ability to extend additional IP services to remote locations via a remote IP services gateway, deploy IP soft phones to laptop PCs and take advantage of increased IP system capacities. These capabilities help to maximize business productivity and cost-saving advantages when deploying IP communications.

According to Chet Lytle, president of Communications Diversified Inc., a Vodavi Authorized Gold Dealer, "We believe Vodavi's value proposition for cost of technology is exceptional, specifically the cost to network multiple locations together using IP. The XTS-IP makes the decision to purchase even easier because customers have the option to start with a few VoIP applications while staying firmly grounded with traditional technology. Customers have the ultimate flexibility to choose their own technology path for meeting company goals."

The XTS-IP product family offers Vodavi customers the benefits of the following new features and devices:

Fully-Functional Host Extensions for Telecommuter and Remote Office Workers

The introduction of the XTS-IP product family brings to market the Nomad RSGM (Remote Services Gateway Module) that allows users at remote locations to become fully-functional extensions of the host telephone system, extends more IP services to remote locations and creates added opportunity for companies utilizing IP services to further reduce toll charges and overhead.

For telecommuters and remote office workers that need service, support and applications beyond a simple IP phone extension, the Nomad RSGM gateway module enables a larger set of phone system features of the XTS-IP or XTSc-IP host system to be extended out to a remote site using VoIP. Single remote workers with increased requirements such as fax, credit card validations and sites with multiple employees are a few examples of how increased support for IP services can be satisfied at a remote location.

The Nomad RSGM also provides a significant toll-saving addition to the XTS-IP product family by allowing a local CO line served from the remote site to the host system. A company with its headquarters in New York and a remote site in Miami, for example, can bypass toll charges by having employees at the headquarters utilize the local CO line in Miami to place outbound calls in the local Miami vicinity. The local CO line from the Nomad RSGM also ensures remote workers have access to local 911 services.

IP Soft Phone for Traveling Worker/SOHO Applications

Designed for road warriors and SOHO (small office/home office) applications, Vodavi's new Nomad SP is a soft phone that operates as a fully-functional extension of the host telephone system when used with a USB headset and a laptop PC. The Nomad SP is Vodavi's first soft phone that eliminates the need for a physical desktop telephone. With all the features of the traditional Vodavi branded multi-button phone at hand, remote workers are able to communicate as if at the headquarters anytime, anywhere the laptop has a broadband connection. When strategically deployed, Nomad SP allows business customers to simultaneously reduce overhead and improve customer service, thus addressing mission-critical presence and mobility communications challenges.

Seamless Multi-Site, Multi-Applications Networking

Up to 32 XTS-IP and XTSc-IP converged telephone systems can network together for seamless, limitless opportunities for digital and IP voice communications. Networking multiple systems together allows enterprises to implement powerful features such as centralized attendant, universal four-digit dialing and voice mail to improve productivity and reduce capital equipment outlay.

Gregory Roeper, Vodavi president and CEO, stated, "As the market continues to increase its use of IP services and applications, we wanted to extend Vodavi's tradition of providing its customers with cost-effective, future-proof voice communication solutions. We believe the XTS-IP family of converged digital and IP solutions satisfies this strategy and allows Vodavi to continue its successful market penetration of both digital and IP solutions that allow enterprise customers, regardless of size, full access to the latest time reducing, productivity enhancing and cost saving products available."

About XTS-IP Family of Products

Previously marketed under the XTS family of digital communication systems, the XTS product has been renamed the XTS-IP and XTSc-IP to reflect the expanded support for both digital and IP applications.

The XTS-IP family of communication systems offers enterprises the flexibility to grow their telephone system as business needs demand. Based on a flexible cabinet architecture, the XTS-IP communications platform can be configured from one to six cabinets for maximum of 600 ports. When fully expanded, the XTS-IP can support up to 96 IP endpoints.

The XTSc-IP solution for small businesses or remote sites in a networked environment, shares the same internal components as the larger XTS-IP system so the system can grow. The XTSc-IP employs a single cabinet unit that starts as eight stations and four CO lines with two analog ports and can grow to 28 CO lines, 44 stations and two analog ports. For VoIP support the XTSc-IP delivers up to 24 IP endpoints.

About Vodavi

Vodavi Technology Inc. is an advanced telephony solutions provider delivering innovative business communications solutions that help small to large enterprises increase productivity and reduce costs. Vodavi's full range of telephony solutions include traditional telephone systems, Voice-over-IP (VoIP) technology and converged telephony solutions that allow enterprises to deploy traditional digital or VoIP communications simultaneously, providing a flexible and cost-effective migration path to new technology. The company is headquartered in Phoenix. For more information on Vodavi, visit www.vodavi.com.