News Release

For Immediate Release

Telecommunications Manufacturers Post Strong
Second Quarter Sales Despite Slowing Economy

BEDMINSTER, New Jersey, Sept. 1, 1998 - The US economy was not exactly bullish this past Second Quarter.  But you would never have known it if you were looking at sales of business telephone systems.  Manufacturers of these PBX and Key/Hybrid systems shipped 12.3% more Stations/Lines then the same period last year (2Q97).  This as reported by The Eastern Management Group's 2Q98 Monitor Report, which tracks the sales and market share of PBX and Key/Hybrid Telephone System manufacturers.

Second Quarter 1998 PBX Total Line (Station) shipments increased 11.7% over the same period last year (2Q97), resulting in shipments of 1.8 million lines.  Total PBX System shipments increased 11.1% compared to 2Q97.  Lucent remained the PBX market leader for both Total Lines and Systems shipped in 2Q98, widening its market share lead with 32.8% and 23.8% respectively.  Nortelīs 26.4% market share for PBX Total Lines shipped kept them in the number two spot.  Mitel moved into the second spot for PBX Total System shipments with 19.3% market share.

Key/Hybrid Total Line (Station) shipments increased 13% over the same period last year (2Q97), resulting in shipments of 1.9 million lines. However, Total Key/Hybrid System shipments decreased 1.3% over last quarter (1Q98).  The market leader for Key/Hybrid Total Lines (Stations) and Systems continued to be Lucent, with 28% and 19% market share respectively.  Nortel remained in second with 13% and 15.6% respectively.  Executone had the largest gain in Total Key/Hybrid Line (Station) shipments in comparison to last quarter (1Q98), moving into the number three slot with 11% market share.

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