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Matthew Booher V.P. Finance, Corporate Treasurer & Investor Relations Officer November 15, 2012

Matthew Booher V.P. Finance, Corporate Treasurer & Investor Relations Officer November 15, 2012. 14 - 16 November 2012 | Cancun , Mexico. Forward Looking Statements.

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Matthew Booher V.P. Finance, Corporate Treasurer & Investor Relations Officer November 15, 2012

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  1. Matthew Booher • V.P. Finance, Corporate Treasurer & Investor Relations Officer • November 15, 2012 14 - 16 November 2012 | Cancun, Mexico

  2. Forward Looking Statements Certain statements contained in this document are forward looking statements. These statements may be identified by the use of forward looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "should" or "will" or other similar terminology. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. For a discussion of the risks and uncertainties affecting our business, please see our public filings with the Securities Exchange Commission at www.sec.gov. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

  3. Avaya Introduction • Near term revenue outlook continues to reflect low visibility • Uncertain economic environment and growth rates in IT spend across geographies • EMEA and U.S. Public Sector in particular continue to experience softness; China, Japan and Australia growth is slowing • Business momentum and sales cadence on positive trajectory in second half of FY12 • Surgical restructuring underway to drive profitability and cash flow(3) • Actions already taken in 2H FY12 were ahead of plan and will generate FY13 cost savings (relative to Q3 Adj. EBITDA) of approximately $105M • Additional savings FY13 to FY15 targeted in indirect spending, supplier related actions, real estate consolidations and ongoing headcount management • $135 – 235M in FY13 savings and total $400M+ annualized cost reductions by FY15 • Q3 results and Q4 expectations(1) evidence stabilization and increased profitability • Q3 and Q4 Adjusted EBITDA(2) grew sequentially 13% and 11-16%, respectively • Q4 revenue increased sequentially to $1,270M - $1,277M • Gross margin(2)was 54% in Q4’12 – nearly back to Q4’11 record level despite lower revenue • Cash increased 24% to $337M in Q4 from the Q3 level • Committed to innovation and product development • Increasing R&D investments; ahead of industry averages • Technology acquisitions to expand markets

  4. Gross Margin(2) Recent Quarterly Performance(1 Total Revenues ($M) NES acq. NES acq. NES acq. Product Services $1,277 - $1,270

  5. Adjusted EBITDA(2) ($M) and Margin Recent Quarterly Performance(1 4Q12 figures are estimates; please see the company’s most recent Form 8-K filed with the SEC on 10/18/12 Gross margin excludes amortization of technology intangible assets and any other acquisition related adjustments. Gross margin as shown and adjusted EBITDA are non-GAAP metrics. For reconciliation to our GAAP financial information please see our filings at www.sec.gov. Cash Balance ($M) NES acq. NES acq. $260 - $250

  6. Avaya Product Revenue ($ Millions)

  7. Strong Liquidity Position Cash plus borrowing capacity under existing revolvers *Original business model assumed a working capital requirement of only $150M *

  8. R&D ($M) R&D as a % of Product Revenue Growing Product Investment Note: Avaya product revenue excludes rental and AFS revenue * FY2011 * FY2012 year to date at 18%

  9. Recent Acquisitions

  10. Acquisition & Integration Expenses

  11. Macro Environment Remains Challenged; Customers Forced to Prioritize IT Spend Avaya Momentum and Visibility Global IT Spending Growth Rates • India • Russia • Mexico • UC/CC Apps • Web Collaboration • Business Analytics • Video • Security • Speech • US • Canada • Brazil • APAC • Call Control • Voice Endpoints • US Govt. • Western Europe • TDM Systems/Sets • Traditional Voice Support Source: Gartner, Enterprise IT Spending by Vertical Industry, Q2 ‘12

  12. Evolution of Cost Structure Total Avaya Headcount Ongoing Headcount Management Complexity Reduction Footprint Consolidation First opportunity to deal with size & complexity

  13. Illustrative FY13 EBITDA Impact of Cost Initiatives(1) Committed Additional opportunity In an 8K filed with the SEC on 9/24/12, the company disclosed cost savings initiatives over the next several years. Actual results may vary based on a number of factors, including but not limited to, the risks identified in Avaya’s SEC filings at www.sec.gov ($M) Targeted $400M+ annualized cost reductions by FY15 $240M – 340M of incremental realized cost savings by end of FY13

  14. Today, tomorrow and in the future… • Strong positioning & competitive advantages, clear strategy & solid financial foundation • Delivering on transformation and operational improvement programs • Generating cash flow – investing for the future • Redefining the market with innovative solutions • Commitment to delivering value for our customers, employees, partners and owners.

  15. Matthew Booher • V.P. Finance, Corporate Treasurer & Investor Relations Officer • November 15, 2012 14 - 16 November 2012 | Cancun, Mexico

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