eOn Communications Corporation(TM) Announces Restructuring Including Management Changes, Streamlining of Product Strategy and Expense Reductions

Confirms February 27 Date for Release of Fiscal Second Quarter 2001 Financial

Results, Announces Conference Call Arrangements

Feb 13, 2001, 00:00 ET from eOn Communications Corporation

    ATLANTA, Feb. 13 /PRNewswire/ --
     eOn Communications Corporation (Nasdaq:   EONC), a leading provider of
 unified voice, e-mail and Web-based communications systems and software, today
 announced changes to its senior management team, the restructuring of
 operations and product lines to improve profitability, and measures to focus
 operating resources on its Linux(TM)-based communications systems and software
     Troy E. Lynch, the Company's executive vice president and chief technology
 officer, has been promoted to chief operating officer.  As COO, Lynch will
 oversee the Company's sales and marketing, product development, and customer
 support operations reporting to David S. Lee, chairman and chief executive
 officer.  Lynch joined eOn in February 1999 as vice president and chief
 technology officer.  He came to eOn from Hayes Corporation, where he was vice
 president of research and development.  His senior management career also
 includes experience with other developing communications and high-tech
 companies such as Access Beyond and Penril Communications.
     "Troy Lynch possesses the vision, energy and leadership qualities to
 transform eOn into a more significant player in the fast-growing
 communications industry," said Lee.  "Troy's promotion not only recognizes his
 contributions and leadership during his tenure with the Company, but also
 confirms our confidence in his ability to drive the programs needed to improve
 the Company's overall operations and build the business."
     eOn also announced the appointment of Lanny N. Lambert as vice president
 and chief financial officer.  Lambert joined the Company in October 2000 as
 chief accounting officer.  His previous experience in the communications
 industry includes service as vice president of finance and administration and
 CFO of CMC Industries, Inc.; vice president of finance and administration and
 CFO of the Corinth Telecommunications Corporation subsidiary of Alcatel n.v.;
 and various financial and administrative positions with ITT.  Lambert succeeds
 Stephen N. Samp, who has resigned to pursue other interests.
     "Lanny Lambert is a seasoned financial officer who understands our
 industry and our company," said Lee.  "He is well acquainted with the
 financial and operational imperatives of the communications business.  Lanny
 is a strong addition to our senior management team."
     The Company also announced the resignation of Robert R. Cash as vice
 president and chief marketing officer.  A search is currently underway to hire
 a replacement.
     Other actions taken in connection with the restructuring of the Company's
 operations include work force reductions of approximately twenty percent, the
 discontinuation of sales of most third-party products in both the domestic and
 the Caribbean/Latin American markets, and the relocation and concentration of
 management and certain other strategic functions to the 'Company's
 headquarters in Atlanta, Georgia.
     "We have made significant progress in restructuring our business," said
 Lee.  "The elimination of certain third-party products from the Company's
 market offering enables us to further reduce operating expenses, focus
 marketing and development resources primarily on our advanced Linux(TM)-based
 communications systems and software, and concentrate on profitable segments of
 our Millennium(R) business.
     "This restructuring and other organizational changes are designed to make
 eOn a much stronger and more effective competitor, resulting in revenue
 enhancements and cost savings that will accelerate the Company's return to
 profitability.  We will focus on profitability and earnings growth by
 specifically targeting our higher gross margin products and by aggressively
 reducing expenses," concluded Lee.
     eOn will recognize restructuring and other related charges in its
 financial results for the second fiscal quarter ended January 31, 2001.  The
 Company plans to announce complete second quarter financial results Tuesday,
 February 27th, 2001, after market close.  Following the announcement, eOn
 Communications Corporation will host a conference call to provide additional
 information regarding second quarter results and the restructuring of the
 Company's operations.
     Conference Call Arrangements:
     The eOn Communications Corporation second quarter conference call will be
 held at 4:45 p.m. Eastern Standard Time on Tuesday, February 27, 2001.
 Shareholders and other interested parties are invited to dial 913 981-5518
 beginning at 4:30 p.m. EST.  The operator will request a confirmation code,
 which is 705064.
     The live call will also be available through a link on the Company's Web
 site home page at www.eoncc.com.  Internet users are requested to participate
 through the Web site if possible so that phone lines will be readily available
 to those without Web access.  Please log on 30 minutes in advance to download
 and install audio software if necessary.
     A replay of the call will be posted to the investor information section of
 the eOn Web site shortly following the call.  A recording will also be
 available no later than noon on February 28 by direct dial at 901 462-1010.
     About eOn Communications Corporation:
     eOn Communications Corporation (http://www.eoncc.com ) designs, develops
 and markets next-generation communications systems, adjunct servers and
 software that integrate and manage voice, e-mail and Internet communications
 for customer contact centers and general business applications.  eOn
 Communications Corporation helps enterprises communicate more effectively with
 customers, convert inquiries into sales, and increase customer satisfaction
 and loyalty.
     Note: This press release may contain forward-looking statements within the
 meaning of the Private Securities Litigation Reform Act of 1995.  These
 forward-looking statements involve risks and uncertainties, including
 technical and competitive factors, which could cause the Company's results and
 the timing of certain events to differ materially from those discussed in the
 forward-looking statements.  Such risks are detailed in eOn Communications
 Corporation's most recent Form 10-Q filing with the Securities and Exchange

SOURCE eOn Communications Corporation