eOn Communications Announces Plans to Acquire IP Telecommunications Systems Developer Aelix Systems, Inc.

eOn Communications Announces Plans to Acquire IP Telecommunications Systems Developer Aelix Systems, Inc.

ATLANTA, Jan. 6 /PRNewswire-FirstCall/ -- eOn Communications Corporation(TM) (NASDAQ:EONC), a leading provider of unified voice, e-mail and Web-based communications systems and software, announced today that it has entered into a letter of intent which outlines the terms in which eOn will acquire Aelix Systems Incorporated, a developer of telecommunications systems and applications based on internet protocol (IP) technology.

The letter of intent anticipates a transaction in which a newly formed subsidiary of eOn will acquire substantially all the assets of Aelix Systems, including its intellectual property rights. Aelix Systems will receive common stock of eOn as a result of the acquisition. It is anticipated that 10,000 eOn shares will be issued upon closing the acquisition and up to an additional 215,000 will be issued over six quarters after the closing date if Aelix Systems attains specified product release schedules and eOn achieves specified product revenues. The number of shares to be issued may be adjusted upon the occurrence of certain events.

Vijay Sharma, President and CEO of Aelix Systems, welcomed the proposed transaction by saying, "We are very excited about the opportunity that will be created by combining our domain expertise in IP switching technology and enterprise business communications with eOn's future product development strategy."

"The acquisition provides eOn with a great opportunity to accelerate its efforts to capitalize on emerging market opportunities enabled by Voice over IP technology," said David S. Lee, Chairman and CEO of eOn. "The acquisition of Aelix Systems will add value to eOn through its deep knowledge and expertise in delivering advanced, IP-based telecommunications platforms and it will significantly shorten the time to market for key products that are in our development pipeline. With the design and technical support team in Bangalore, India, it will accelerate eOn's opportunity in India."

It is anticipated that all current employees of Aelix Systems located in both the United States and India will be employed by the eOn subsidiary upon consummation of the transaction. The proposed acquisition is subject to a number of conditions, including the completion of due diligence and the negotiation and execution of a definitive agreement. Subject to these contingencies, it is expected that the transaction will be consummated during the first calendar quarter of 2005.

About eOn Communications(TM)

eOn Communications Corporation(TM) is a leading provider of unified voice, e-mail and Web-based communications systems for customer contact centers and general business applications. eOn helps enterprises communicate more effectively with customers, convert inquiries into sales, and increase customer satisfaction and loyalty. To find out more information about eOn Communications and its solutions, visit the World Wide Web at www.eoncommunications.com , or call 800-955-5321.

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-K filing with the Securities and Exchange Commission.

eOn Communications Corporation, the mark eOn, and eQueue are trademarks of eOn Communications Corporation.

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Source: eOn Communications Corporation

CONTACT: Investor Relations of eOn Communications, +1-800-955-5321, or
investorrelations@eoncc.com

Web site: http://www.eoncommunications.com/


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