2008 Avaya Award

To:    All Avaya Locals

From:  Lois Grimes-Patow

We have received the following information from the company regarding the Avaya Award.

Thank you for your attention to this matter.

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Avaya is announcing today that the Avaya Performance Factor for FY08 is 88%.  As you know, the Avaya Performance Factor establishes award payments for both represented and salaried (management) employees. Based on this Avaya Performance Factor, the Avaya Award payout under our negotiated Plan for represented employees is $1,178, and will appear in paychecks payable December 12, 2008.

The performance metrics for the 2009 Avaya Award will be Revenue (replacing Cash Flow from Operations) and Earnings Before Interest, Taxes, Depreciation and Amortization (consistent with FY08).  Each measure will be weighted at 50% of our financial results.  Customer Satisfaction will continue to act as a modifier which can increase or decrease the overall funding by up to 10%.  Customer satisfaction will need to improve by 5 percentage points or more to receive the 10% increase. These performance measures are the same used for the Avaya Short Term Incentive Plan for Salaried employees.

Charlie Reichold

Avaya Inc.

Senior Manager - Labor Relations