InfoTech Research: Over 20% of Enterprises Have Locked-in Their Selection of IP Telephony Vendor —
2003 Seen as Breakout Year for Multi-Site Implementations

PARSIPPANY, NJ, April 24, 2003 – New research conducted by InfoTech - the telecommunications research and consulting arm of PBI Media - projects that over 20% of U.S. Enterprises will implement IP Telephony at more than 5 sites by year's end, a major increase from 8% at end-of-year 2002. InfoTech has found that once Enterprises reach this deployment level, termed Stage 2, they have virtually locked-in their choice of Preferred Vendor for all future IP Telephony purchases. Prior to reaching Stage 2, Enterprises demonstrate a willingness to switch vendors or conduct trials with more than one supplier. As PBX and data network vendors become more aware of this Stage 2 threshold, the race for IP Telephony market supremacy will intensify.

According to Terry White, Senior Director for InfoTech's Convergence Practice,
"By the end of 2003, over one third of all Stage 2 enterprises will have selected a data networking company as their Preferred IP Telephony Vendor, heavily favoring Cisco and 3Com. Since LAN-based IP Telephony systems from these data vendors are designed to replace existing TDM phone systems, this will have a major impact on all of the incumbent PBX vendors, especially Avaya and Nortel Networks, which have the largest installed bases of traditional PBXs."

This in-depth research report, entitled Enterprise Convergence: The Race for IP Telephony Supremacy, is the first in a series of four studies to be released in 2003, all part of InfoTech's integrated program focusing on the market demand for converged systems and services among U.S. enterprises. Leveraging three consecutive years of rigorous data collection on IP Telephony trials and adoption rates, the 2003 study has been expanded to include detailed Enterprise decision maker perspectives on specific IP Telephony vendors.

Mr. White is available to provide a more detailed review of his findings. Please contact Terry directly on (973) 602-0115 or via email at twhite@accessintel.com.

InfoTech is a subsidiary of PBI Media, LLC, specializing in global information and professional services for the telecommunications and data networking industries. InfoTech offers a comprehensive portfolio of information and professional services, including market and competitive intelligence programs, business consulting, sales support tools and training, primary research studies and custom marketing programs. Further information about InfoTech can be obtained at the company's web site at www.pbimedia-infotech.com.

Contact:
InfoTech
Mark Ricca,
973/602-0124
infotech@accessintel.com