Avaya Completes Asset Purchase Agreement With Quintus Corporation

World's Leading Call Center Solutions Provider

Strengthens Its CRM Solutions Portfolio



Apr 12, 2001, 01:00 ET from Avaya

    DUBLIN, Calif. and BASKING RIDGE, N.J., April 12 /PRNewswire/ -- Avaya
 (NYSE:   AV), a global leader in business communications solutions and services,
 today announced that it has completed its asset purchase agreement with
 Quintus Corporation. This acquisition strengthens Avaya's presence in the
 customer relationship management (CRM) market by enabling the world's leading
 provider of solutions for call centers to provide a broad, multi-vendor,
 multi-platform portfolio of software solutions.  Avaya also announced that it
 will now focus its CRM Solutions portfolio in three areas:
 
     *     Interaction Management: Providing solutions for real time customer
           interactions, self-service options, and outbound contact management.
     *     Commitment Management: Providing solutions for implementing dynamic,
           measurable business processes throughout the enterprise, enabling
           improved customer experience and resource effectiveness.
     *     Business Intelligence: Providing customer experience analysis
           solutions for channel-based operations, customer transactions and
           enterprise value-based decision making.
 
     Under terms of the agreement, which was announced by Quintus on
 February 22, 2001, Avaya acquired substantially all of Quintus' assets for
 approximately $29 million in cash and has assumed certain of Quintus'
 liabilities up to an additional $30 million.
     This acquisition enables Avaya to accelerate its presence in the CRM
 market by enhancing its internally developed award-winning CRM Solutions
 portfolio with Quintus' line of market-leading solutions.  According to Avaya,
 it will immediately begin to offer its expanded Avaya CRM Solutions offerings
 to customers worldwide, while rapidly integrating the technologies of both
 companies, which will allow it to provide a broader range of integrated
 products in the near future.
     "The addition of Quintus' solutions and assets into the Avaya CRM
 Solutions portfolio enables Avaya to establish a new standard in the market
 for integrated multi-channel customer relationship management," said Keith
 Larson, Avaya's vice president, CRM Solutions Group. "By acquiring Quintus'
 products and people, Avaya is able to accelerate its strategy to provide
 enterprises of all sizes best-in-class CRM solutions to effectively manage
 their critical business relationships in today's customer-centric economy."
 Among the Quintus assets acquired by Avaya is a comprehensive software suite
 that unites traditional call center technology with Internet communications.
 These solutions, which are now part of the Avaya CRM Interaction Management
 offerings, enable businesses to build long-term customer relationships
 consistently and cost-effectively across all forms of electronic media
 including the Web, e-mail, fax and advanced telephony systems. These
 technologies make it possible for businesses to provide outstanding sales,
 service and customer relationship management, while tracking and reporting on
 every single transaction, regardless of which communications channel a
 customer selects.
     "According to our analysis, the Quintus portfolio offers one of the
 broadest and best suites of eCRM applications available," said Brian Stachman,
 senior analyst, Cahners In-Stat Group.  "In addition, Avaya's market
 penetration in the customer care market will provide an expanded distribution
 channel for the combined solution set.  These strengths and technologies offer
 an opportunity to create enhanced solutions and fuel Avaya's capabilities in
 the CRM marketplace."
     Interaction management is important because businesses today are
 communicating with customers across more channels than ever before.  Providing
 consistent, personalized customer experiences across all of them requires an
 integration of channel technologies around a single customer view with common
 business decision making, routing, management and interaction delivery.
     Avaya's internally developed CRM Commitment Management offerings enable
 the creation and measurement of dynamic business processes across the
 enterprise. Building customer satisfaction and loyalty in today's customer
 economy requires the cooperation of many different people across an
 organization, with no information lost.
     Avaya CRM Business Intelligence offerings are critical tools in helping
 businesses succeed in the customer-focused economy because an enterprise can
 improve more rapidly on what it measures more effectively. The combined
 technologies of Avaya and Quintus will be integrated to provide real-time and
 historical analysis solutions.
     "Avaya's greatly enhanced CRM Solutions portfolio clearly demonstrates the
 synergies that drove its acquisition of Quintus' assets," said Lawrence Byrd,
 formerly chief strategy officer at Quintus. "Avaya is shipping these expanded
 CRM Solutions immediately, and has a clear direction on integrating existing
 and acquired technologies to better serve its customers. The addition of
 Quintus employees' expertise will further accelerate Avaya's position in this
 strategic marketplace."
     Dublin, Calif. based Quintus was founded in 1984.  It employs
 approximately 350 persons globally, the majority of whom are now employed by
 Avaya.  The Quintus corporate structure remaining after Avaya's asset purchase
 will continue to exist and manage Quintus' financial obligations.
 
     About Avaya
     Avaya, headquartered in Basking Ridge, N.J., USA, is a leading provider of
 communications systems for enterprises, including businesses, government
 agencies and other organizations.  Avaya offers converged voice and data,
 customer relationship management, messaging, unified communication solutions,
 voice multi-service networking and structured cabling products and services.
 Avaya is a worldwide leader in sales of messaging and structured cabling
 systems and a U.S. leader in sales of enterprise voice communications and call
 center systems.  Avaya intends to use its leadership positions in enterprise
 communications systems and software, its broad portfolio of products and
 services, and strategic alliances with other technology and consulting
 services leaders to offer its customers comprehensive eBusiness solutions.
 For more information about Avaya, visit its Web site at http://www.avaya.com.
 
     This news release contains forward-looking statements based on current
 expectations, forecasts and assumptions that involve risks and uncertainties
 that could cause actual outcomes and results to differ materially. These
 forward-looking statements include, but are not limited to, future products,
 market and technology development, future benefits of the merger, estimated
 date to complete the transaction, and the expected impact of the transaction
 on future earnings. These risks and uncertainties include price and product
 competition, dependence on new product development, reliance on major
 customers, customer demand for our products and services, the ability to
 successfully integrate acquired companies, control of costs and expenses,
 international growth, general industry and market conditions, growth rates and
 general domestic and international economic conditions, including interest
 rate and currency exchange rate fluctuations. For a further list and
 description of such risks and uncertainties, see the reports filed by Avaya
 with the Securities and Exchange Commission (SEC). Avaya disclaims any
 intention or obligation to update or revise any forward-looking statements,
 whether as a result of new information, future events or otherwise.
 
 

SOURCE Avaya
    DUBLIN, Calif. and BASKING RIDGE, N.J., April 12 /PRNewswire/ -- Avaya
 (NYSE:   AV), a global leader in business communications solutions and services,
 today announced that it has completed its asset purchase agreement with
 Quintus Corporation. This acquisition strengthens Avaya's presence in the
 customer relationship management (CRM) market by enabling the world's leading
 provider of solutions for call centers to provide a broad, multi-vendor,
 multi-platform portfolio of software solutions.  Avaya also announced that it
 will now focus its CRM Solutions portfolio in three areas:
 
     *     Interaction Management: Providing solutions for real time customer
           interactions, self-service options, and outbound contact management.
     *     Commitment Management: Providing solutions for implementing dynamic,
           measurable business processes throughout the enterprise, enabling
           improved customer experience and resource effectiveness.
     *     Business Intelligence: Providing customer experience analysis
           solutions for channel-based operations, customer transactions and
           enterprise value-based decision making.
 
     Under terms of the agreement, which was announced by Quintus on
 February 22, 2001, Avaya acquired substantially all of Quintus' assets for
 approximately $29 million in cash and has assumed certain of Quintus'
 liabilities up to an additional $30 million.
     This acquisition enables Avaya to accelerate its presence in the CRM
 market by enhancing its internally developed award-winning CRM Solutions
 portfolio with Quintus' line of market-leading solutions.  According to Avaya,
 it will immediately begin to offer its expanded Avaya CRM Solutions offerings
 to customers worldwide, while rapidly integrating the technologies of both
 companies, which will allow it to provide a broader range of integrated
 products in the near future.
     "The addition of Quintus' solutions and assets into the Avaya CRM
 Solutions portfolio enables Avaya to establish a new standard in the market
 for integrated multi-channel customer relationship management," said Keith
 Larson, Avaya's vice president, CRM Solutions Group. "By acquiring Quintus'
 products and people, Avaya is able to accelerate its strategy to provide
 enterprises of all sizes best-in-class CRM solutions to effectively manage
 their critical business relationships in today's customer-centric economy."
 Among the Quintus assets acquired by Avaya is a comprehensive software suite
 that unites traditional call center technology with Internet communications.
 These solutions, which are now part of the Avaya CRM Interaction Management
 offerings, enable businesses to build long-term customer relationships
 consistently and cost-effectively across all forms of electronic media
 including the Web, e-mail, fax and advanced telephony systems. These
 technologies make it possible for businesses to provide outstanding sales,
 service and customer relationship management, while tracking and reporting on
 every single transaction, regardless of which communications channel a
 customer selects.
     "According to our analysis, the Quintus portfolio offers one of the
 broadest and best suites of eCRM applications available," said Brian Stachman,
 senior analyst, Cahners In-Stat Group.  "In addition, Avaya's market
 penetration in the customer care market will provide an expanded distribution
 channel for the combined solution set.  These strengths and technologies offer
 an opportunity to create enhanced solutions and fuel Avaya's capabilities in
 the CRM marketplace."
     Interaction management is important because businesses today are
 communicating with customers across more channels than ever before.  Providing
 consistent, personalized customer experiences across all of them requires an
 integration of channel technologies around a single customer view with common
 business decision making, routing, management and interaction delivery.
     Avaya's internally developed CRM Commitment Management offerings enable
 the creation and measurement of dynamic business processes across the
 enterprise. Building customer satisfaction and loyalty in today's customer
 economy requires the cooperation of many different people across an
 organization, with no information lost.
     Avaya CRM Business Intelligence offerings are critical tools in helping
 businesses succeed in the customer-focused economy because an enterprise can
 improve more rapidly on what it measures more effectively. The combined
 technologies of Avaya and Quintus will be integrated to provide real-time and
 historical analysis solutions.
     "Avaya's greatly enhanced CRM Solutions portfolio clearly demonstrates the
 synergies that drove its acquisition of Quintus' assets," said Lawrence Byrd,
 formerly chief strategy officer at Quintus. "Avaya is shipping these expanded
 CRM Solutions immediately, and has a clear direction on integrating existing
 and acquired technologies to better serve its customers. The addition of
 Quintus employees' expertise will further accelerate Avaya's position in this
 strategic marketplace."
     Dublin, Calif. based Quintus was founded in 1984.  It employs
 approximately 350 persons globally, the majority of whom are now employed by
 Avaya.  The Quintus corporate structure remaining after Avaya's asset purchase
 will continue to exist and manage Quintus' financial obligations.
 
     About Avaya
     Avaya, headquartered in Basking Ridge, N.J., USA, is a leading provider of
 communications systems for enterprises, including businesses, government
 agencies and other organizations.  Avaya offers converged voice and data,
 customer relationship management, messaging, unified communication solutions,
 voice multi-service networking and structured cabling products and services.
 Avaya is a worldwide leader in sales of messaging and structured cabling
 systems and a U.S. leader in sales of enterprise voice communications and call
 center systems.  Avaya intends to use its leadership positions in enterprise
 communications systems and software, its broad portfolio of products and
 services, and strategic alliances with other technology and consulting
 services leaders to offer its customers comprehensive eBusiness solutions.
 For more information about Avaya, visit its Web site at http://www.avaya.com.
 
     This news release contains forward-looking statements based on current
 expectations, forecasts and assumptions that involve risks and uncertainties
 that could cause actual outcomes and results to differ materially. These
 forward-looking statements include, but are not limited to, future products,
 market and technology development, future benefits of the merger, estimated
 date to complete the transaction, and the expected impact of the transaction
 on future earnings. These risks and uncertainties include price and product
 competition, dependence on new product development, reliance on major
 customers, customer demand for our products and services, the ability to
 successfully integrate acquired companies, control of costs and expenses,
 international growth, general industry and market conditions, growth rates and
 general domestic and international economic conditions, including interest
 rate and currency exchange rate fluctuations. For a further list and
 description of such risks and uncertainties, see the reports filed by Avaya
 with the Securities and Exchange Commission (SEC). Avaya disclaims any
 intention or obligation to update or revise any forward-looking statements,
 whether as a result of new information, future events or otherwise.
 
 SOURCE  Avaya