Pitch Book

Presentation to
Review of Aviator
April 2006
Table of Contents
Section
1
Review of Aviator
A
Business Overview
Historical Stock Price Performance
Wall Street Coverage
Current Valuation
Historical and Projected Financial Review
Officer and Director Profile
Shareholder Profile
Aviator Corporate Profile
Valuation of Aviator
A
Aviator Top-Down Valuation
Aviator Sum-of-the-Parts Valuation
Enterprise Communications Group Valuation
Enterprise Services Valuation
Pro Forma Merger ConsequencesNortel Acquires Aviator

A
Transaction Considerations
Pro Forma Merger Consequences
CONFIDENTIAL
8202529, v1
Section 11
Review of Aviator
Section 1-12
Business Overview
Snapshot of Aviator
Summary Income Statement
FY Ending 9/30
Revenue
Growth %
EBIT
Operating Margin %
($ in millions)
2003A
2004A
2005E
2006E
2007E
$3,796.0
NA
$4,069.0
7.2
%
$324.0
8.0
%
$4,934.0
21.3
%
$320.7
6.5
%
$5,316.0
7.7
%
$393.4
7.4
%
$5,635.0
6.0%
$63.0
1.7
%
$495.9
8.8%
Aviator
Aviator is a leading provider of communications systems, applications and services that help enterprises transform their businesses by redefining the way they work and interact with their
customers, employees, business partners, suppliers and others. Aviator aims to help its customers optimize their enterprises in order to serve their own customers better, enabling them to reduce
costs and grow revenue while preserving the security and reliability of their networks. A key component of Aviators strategy is to leverage its substantial experience and expertise in traditional
voice communications systems to capitalize on the transition of these traditional voice systems to IP telephony systems. Aviator believes its comprehensive suite of IP telephony systems,
communications applications and appliances transforms the enterprise communications system into a strategic asset of its customers.
Global Communications Solutions (51% Revenue)
Global Services (49% Revenue)
Large Communications Systems
Maintenance
Small Communications Systems
Implementation and Integration Services
Converged Voice Applications
Rental and Managed Services
CONFIDENTIAL
Draft of 8202529, v1, printed 10/14/2008 10/14/2008
40
AviatorGlobal Communications Solutions

FY Ending 9/30
Revenue
Growth %
EBIT
Operating Margin %
($ in millions)
2004A
2005E
2006E
2007E
$2,048.0
NA
$2,275.3
11.1
%
$110.6
4.9
%
$2,450.1
7.7
%
$146.0
6.0
%
$2,597.1
6.0%
$71.0
3.5
%
$189.4
7.3%
Global Communications Solutions

Global Communications Solutions sells communications systems and converged voice applications designed for both large and small enterprises. Aviators
offerings in this segment include IP telephony systems, multi-media contact center infrastructure and applications in support of customer relationship
management, unified communications applications and appliances, and traditional communications systems.
Large Communications Systems
Small Communications Systems
Converged Voice Applications
Media servers
Aviator IP Office
Voice messaging
Media gateways
Telephone handsets
Unified messaging products
Telephone handsets
Media servers for voice

applications
Other applications that facilitate

and enhance interaction in an
enterprise with customers,
partners, suppliers and employees
Contact Center Solutions

Extension to Cellular
CONFIDENTIAL
40
AviatorGlobal Services
FY Ending 9/30
Revenue
Growth %
EBIT
Operating Margin %
($ in millions)
2004A
2005E
2006E
2007E
$1,761.0
NA
$2,658.7
60.0
%
$210.1
7.9
%
$2,865.9
7.8
%
$249.0
8.7
%
$3,037.9
6.0
%
$306.5
10.1
%
$249.0
14.1
%
Global Services
Global Services is focused on supporting Aviators customer base with comprehensive, end-to-end global service offerings that enable customers to plan,
design, implement, monitor and manage their converged communications networks worldwide.
Maintenance
Implementation and Integration Services
Monitors and optimizes customers

network performance to ensure
availability.
Helps customers leverage and optimize

their multi-technology, multi-vendor
environments.
Keeps enterprise communications

networks current with the latest software
releases, and, in the event of an outage,
provides on-site support to help
customers recover rapidly.
Helps enterprises assess, design and

install traditional and IP telephony
networks, contact centers and unified
communications networks.
CONFIDENTIAL
Rental and Managed Services

Supports customers in-house staff and
manages complex, multi-vendor, multitechnology networks.
Optimizes network performance and
configurations, backs up systems,
detects and resolves faults, performs
moves, adds and changes and manages
customers trouble tickets and
inventories.
40
AviatorMarket Share Analysis

Business Area
Voice
Services
Applications
Call Center
CONFIDENTIAL
Geographic Region
EMEA
North America
APAC
Nortel
26%
Siemens
16%
NEC
Aviator
21
Alcatel
15
Fujitsu
NEC
10
Aviator
11
Oki
Mitel
Ericsson
10
Samsung
Cisco
Nortel
Nortel
Inter-Tel
Samsung
LG Electronics
Cisco
8%
HP
8.3%
Fujitsu
Aviator
NextiraOne
5.0
HP
HP
Siemens
4.5
Cisco
Northrop Grumman
Cisco
3.9
IBM
Verizon
Nokia
3.5
NEC
IBM
IBM
3.4
Nortel
12%
Aviator
12
Nortel
Polycom
Polycom
Cisco
IBM
IBM
Cisco
Microsoft
Microsoft
Aviator
36%
Aviator
31%
Aviator
55%
Nortel
22
Nortel
23
Nortel
20
Siemens
Alcatel
11
NEC
Aspect
Aspect
Huawei
Aviator
11%
22%
11%
Not Available
40
AviatorProduct Comparison
Review of Large IP PBXs (1,000 + Stations)(1)
Ratings
Architecture(2)
Endpoints(3)
Management and Admin
Features
(5)
Security(6)
(7)
Performance
Total
(4)
Aviator S8710
Media Server,
G650 Gateway
Cisco IP
Communications
System
Alcatel
OmniPCX
Enterprise
ShoreTel
ShoreTel5
Siemens
HiPath 4000
15
14
12
12
10.5
11
20
20
19.5
19
17.5
18
15
11
12
12.5
11.5
11.5
20
17.5
17.5
15
17
16.5
10
8.5
5.5
20
19
17
20
16.5
13
100
90
87
83.5
78
75.5
Source: McKinsey Report.
CONFIDENTIAL
40
Aviators Challenges in Enterprise Voice
Source: BCR, January 2005.

(1) Nortel declined the invitation to participate.
(2) Includes: Call-control survivability; redundancy and fallover; IP-to-PSTN re-routing, VoIP bandwidth control; QOS support; scalability, standards support and interoperability; and
distributed-system networking.
(3) Includes verification of endpoint support: IP hard phone, softphone, wireless, analog/fax support, Power-over-Ethernet; unique, specialty and advanced endpoint features, including video.
(4) Based on management task completion, interface navigability and intuitiveness, on-screen help, real-time monitoring, reports and reporting.
(5) Includes: Validation of 16 basic phone features; verification of common add-on subsystems (E911, voice mail, voice recognition/response, etc.), and evaluation of special and unique advanced
features.
(6) Includes: Verification of encrypted call control, VoIP/RTP stream encryption, secure management access, vendors security documentation, services, security-infrastructure offerings and
affiliations.
(7) Includes: Traffic load/call-completion testing, interactive/MOS voice-quality tests, latency measurements, verification of high-availability features.
CONFIDENTIAL
40
Protecting its current installed base of voice customers
Risk of technology substitution from open standard IP-based technologies that could
eliminate the need for specialized voice vendors (Commoditization Effect)
Dealing with the threat from IP-Centrex offerings, especially as service providers look for
new revenue platforms
Well funded competitors like Cisco with significant data credibility
Changing financial metrics as customers migrate to IP
CONFIDENTIAL
40
AviatorSummary of Recent Acquisitions

($ in millions)
Date
2004
12/15/04
11/18/04
10/04/04
08/04/04
2003
11/26/03
10/02/03
2001
04/12/01
03/07/01
02/14/01
CONFIDENTIAL
Target
Amount
Paid
Description
Route Science
Tenovis Germany GmbH
Spectel
Tata Telecom (now Aviator
GlobalConnect Ltd.)
$7 M
371 M
106 M
18 M
A maker of adaptive networking software (ANS) for enterprises and service providers.
A European-based provider of enterprise communications systems and services.
A provider of audio and web conferencing solutions.
An India-based communication solutions provider and a distributor of Aviator products in
India.
Expanets
152 M
A provider of converged communications for mid-sized businesses, and one of the largest
resellers of Aviators products in the United States.
An IT services business unit that develops Java-based software for contact center
platforms, interactive voice response systems, and CRM software.
VISTA Information
Technologies, Inc.
NA
Quintus Corporation
Cyber IQ Systems
30 M
NA
VPNet Technologies, Inc.
120M
A provider of electronic customer relationship management (eCRM) solutions.

Developer of data networking products including HyperCommerce, CyberSSL and
MonsterSSL.
A privately held developer of virtual private network (VPN) solutions and devices.
40
Section 1-23
Historical Stock Price

Performance
Aviator Stock Price Performance

Daily: May 9, 2004May 9, 2005
60,000
50,000
$20.00
A
18.00
16.00
30,000
20,000
14.00
F
C
12.00
0
5/04
8.00
6.00
7/04
9/04
11/04
Volume
A
05/24/04:
Announced a voluntary contribution of approx. $111M of its

common stock to its pension plan.
07/06/04:
07/27/04:
10.00
10,000
Price
Volume
40,000
1/05
3/05
5/05
Price
G
11/18/04:
Announced it had completed cash repurchases of $131.6 million

in principal amount of its 11 1/8% senior secured notes during the
third fiscal quarter.
Announced a redemption for cash all of its outstanding Liquid

Yield Option Notes due 2021 (LYONs) on December 20,
2004. The redemption price was $545.67 per $1,000 principal
amount at maturity of LYONs.
01/25/05:
Announced Q3 04 EPS of 16 cents versus consensus estimates of

12 cents.
Announced Q1 05 EPS of 17 cents versus consensus estimates

of 18 cents.
02/24/05:
Announced the successful completion of a new $400 million

five-year unsecured revolving credit facility and the reduction
of secured floating rate notes associated with the Tenovis
acquisition.
04/19/05:
Announced Q2 05 EPS of 9 cents versus consensus estimates

of 18 cents.
10/26/04:
Announced Q4 04 EPS of 19 cents versus consensus estimates of

18 cents.
10/28/04:
Provided guidance for fiscal year 2005 including an operating

margin between 8.59.0% and revenue growth between 2527%
compared to fiscal 2004 revenues of $4.1B.
11/01/04:
Commenced a cash tender offer for any and all of its 11-1/8%
Senior Secured Notes due 2009.
Indexed Stock Price Performance

Indexed Comparison Graph
Daily: May 9, 2003May 9, 2005
130%
130%
120
120
110
110
100
100
90
90
80
80
70
70
60
60
50
50
5/05
5/04
7/04
Aviator
NASDAQ
Source: Thomson One Banker and Company press releases.
9/04
11/04
1/05
Global Communications Equipment Composite
(1)
3/05
Global Enterprise Services Composite
(2)
Section 1-34
Wall Street Coverage
Source: Thomson One Banker.

(1) Peer group includes Alcatel, Aspect, Cisco, Inter-Tel, InterVoice, Nortel and Polycom.
(2) Peer group includes Black Box, Convergys, CGI Group, Getronics and Unisys.
Wall Street Commentary

Despite the earnings miss and pressure on the shares this morning, we still see some downside risk in sales and margins for the
next several quarters. We believe that the year-over-year decline for core Aviators sales highlights sales of IP telephony products
mostly just cannibalizes sales of traditional telephony products and the enterprise telephony industry as a whole has shown and is
likely to continue to show limited growth.
Jiong Shao, Lehman Brothers (April 20, 2005)
We believe that most of the issues are temporary, the Tenovis integration wiped out almost 50% of this quarters EPS and service
revenue weakness explains the rest. The Tenovis integration had a highly detrimental effectcontributing a loss of $28m in the
quarter. The integration of this company is clearly proving to be a more challenging task than envisioned by the company.
Tal Liani, Merrill Lynch & Co. (April 20, 2005)
Despite these reductions to our top-line forecast and an assumed market-even growth outlook in our discounted cash flow model
we still view the shares as grossly undervalued by the market. While we certainly acknowledge a lower bar has been set with the
disappointing results for F2Q, we do not believe the current stock price fairly represents the companys cash-generating potential
over the longer term.
Timm Bechter, Legg Mason (April 20, 2005)
We are maintaining our Neutral rating as we expect the current pause in VoIP demand to continue through calendar 2005. We
believe that organic growth could be flat year-over-year with flat-to-down gross and net margins. We do not expect VoIP sales to
be robust enough to overcome the declining legacy TDM business, in order to give Aviator significant growth to warrant a
buy rating.
Gina Sockolow, The Buckingham Research Group (April 20, 2005)
Aviator Analyst Coverage

Analyst
Bank
Rating
Price Target
Date
Market Perform
NA
05/03/05
Tavis McCourt
Morgan Keegan
Gina Sockolow
Buckingham Research Group
Neutral
NM
04/25/05
Jiong Shao
Lehman Brothers
Neutral
$7.40
04/21/05
Scott Coleman
Morgan Stanley
Attractive
16.00
04/20/05
Long Jiang
UBS
Buy 2
13.00
04/20/05
Frank Marsala
First Albany
Neutral
NA
04/20/05
Ehud Gelblum
JP Morgan
Neutral
NA
04/20/05
Manuel Recarey
Kaufman Brothers
Buy
12.00
04/20/05
Timm Bechter
Legg Mason
Buy
21.00
04/20/05
Eric Buck
Janco Partners
Market Perform
9.00
04/20/05
Jason Ader
Thomas Weisel
Peer Perform
NA
04/20/05
Christin Armacost
SG Cowen
NA
NA
04/20/05
Samuel Wilson
JMP Securities
Strong Buy
20.00
04/20/05
Inder Singh
Prudential
Overweight
14.00
04/20/05
B. Alex Henderson
Smith Barney
Buy
20.00
04/13/05
Section 1-45
Current Valuation
Current ValuationAviator
($ in millions, except per share data)
Stock Price
Stock Price (5/27/05)
Current Value
$9.53
Fully Diluted Shares
Selected Balance Sheet Items (3/31/05)
489.298
Cash
$688.3
(1
)
52-week High
17.76
52-week Low
7.76
AverageLast 30 days
9.00
Analyst Estimates
Net Income
CY 2007E
Equity Value
Enterprise Value
$4,663.0
3,996.7
Total Debt
22.0
Shareholders Equity
Total Debt/Total Capitalization
1,238.3
1.7 %
Revenue
EBITDA
EBIT
$396.2
$5,719.5
$788.9
$513.8
CY 2006E
367.3
5,395.8
686.9
419.0
CY 2005E
296.8
5,029.5
626.4
338.9
Current Value as
a Multiple of:
Equity Value/
Net Income
Revenue
Enterprise Value/
EBITDA
EBIT
CY 2007E
11.8x
0.70x
5.1x
7.8x
CY 2006E
12.7
0.74
5.8
9.5
CY 2005E
15.7
0.79
6.4
11.8
Section 1-56
Historical and Projected

Financial Review
(1)
Based on 477.043 million basic shares and 20.696 million in-the-money options with a weighted average strike price of $3.89.
Aviator Historical Financial Review

Historical Income Statement Data
Fiscal Year Ending September 30
($ in millions)
2003
2004
Revenues
% Growth
$4,387.0
NA
$2,370.0
NM
$2,523.0
$4,069.0
7.2
%
$2,124.0
$4,462.0
NM
Cost of Sales
$3,796.0
(13.5
%)
$2,157.0
$2,330.0
$1,264.0
Gross Profit
% Gross Margin
$1,864.0
42.5
%
$1,639.0
43.2
%
$1,945.0
47.8
%
$2,132.0
47.8
%
$1,106.0
46.7
%
Operating Expenses
$2,218.0
$1,576.0
$1,621.0
$1,780.0
$966.0
Operating Income
($354.0
)
(8.1
%)
$63.0
$324.0
$352.0
$140.0
1.7
%
7.9
%
7.9
%
5.9
%
1.0
(51.0
)
(29.0
)
(78.0
)
(15.0
)
(66.0
)
(40.0
)
(41.0
)
(38.0
)
(15.0
)
($404.0
)
($44.0
)
$243.0
$271.0
$87.0
$273.0
$84.0
$43.0
$18.0
NM
NM
($49.0
)
NM
15.9
%
20.7
%
(677.0
)
(128.0)
292.0
228.0
69.0
% Operating Margin
Other Income (expense), net
Interest Expense
Pretax Income
Income Taxes (Benefit)
Effective Tax Rate
Net Income from Cont. Operations
LTM 3/31/2005
6 Months Ended
3/31/05
2002
Diluted EPS
EBITDA
% EBITDA Margin
($2.47
)
($0.34
)
$0.64
$0.48
$0.15
($158.0
)
$234.0
$471.0
$567.4
$287.4
(3.6
%)
6.2
%
11.6
%
12.4
%
12.1
%
Aviator Current Balance Sheet

Balance Sheet as of March 31, 2005
($ in millions)
Cash and Cash Equivalents

Receivables
Inventories
Deferred Income Taxes, net
Other Current Assets
$855
793
364
69
139
Total Current Assets
$2,220
Property, Plant and Equipment

Goodwill
Other Intangible Assets
Other Assets
Total Assets
$747
360
939
390
187
$4,843
Accounts Payable
Debt Maturing within one year
Payroll and Benefit Obligations
Deferred Revenue
Other Current Liabilities
Total Current Liabilities
$403
74
289
234
365
$1,365
Long-Term Debt
Benefit Obligations
Other Liabilities
Total Non Current Liabilities
Total Shareholders Equity
Total Liabilities and Shareholders Equity
Source: Company 10-K for period ended September 30, 2004 and Press release for period ended March 31, 2005. Shown as reported.
114
1,595
119
411
$2,239
1,239
$4,843
Aviator Financial Review

Income Statement Summary
FYE September 30,

2003A
2004A
2005E
2006E
2007E
Revenue
% Growth
$3,769.0
NA
$4,069.0
8.0
%
$4,934.0
21.3
%
$5,316.0
7.7
%
$5,635.0
6.0
%
EBITDA
% Margin
$229.0
6.1
%
$471.0
11.6
%
$615.4
12.5
%
$659.5
12.4
%
$769.2
13.7
%
EBIT
% Margin
$58.0
1.5
%
$324.0
8.0
%
$320.7
6.5
%
$393.4
7.4
%
$495.9
8.8
%
Diluted EPS(1)
% Growth
NA
NA
$0.64
NA
$0.54
(15.5
%)
$0.70
29.4
%
$0.78
11.3
%
First Call EPS LTGR
Source: Earnings release for period ended March 31, 2005.
10.0
%
Section 1-67
Officer and Director Profile
Source: Aviator public filings, Wall Street research, and Bear Stearns estimates.
(1) Based on 480.014 million basic shares and 20.696 million in-the-money options with a weighted average strike price of $3.89.
Aviator Organizational Chart

Donald K. Peterson
Chairman &
Chief Executive Officer
Jocelyne J. Attal
Chief Marketing Officer
Pamela F. Craven
Sr. Vice President,
General Counsel & Secretary
Louis J. DAmbrosio
Group Vice President,
Global Sales and Channels
and Marketing
Maryanne DiMarzo
Sr. Vice President,
Human Resources
Patricia R. Hume
Global Vice President,
Small and Medium Business
Solutions
David P. Johnson
Europe, Middle East and
Africa
Thomas A. Lesica
Global Information
Technology and Business
Operations
Karyn Mashima
Sr. Vice President,
Strategy and Technology
Garry K. McGuire
Chief Financial Officer
and Sr. Vice President,
Corporate Development
Francis M. Scricco
Avaya Global
Ravi Sethi
President,
Avaya Labs
Michael C. Thurk
Enterprise Communications
Group
Director Profile(1)
Board Composition
Insiders
Outsiders
Total
9.1
%
10
90.9
11
100.0
%
Beneficial
Ownership/
(% O/S)
Director
Since
Term
Expires
Age
Donald K. Peterson
2002
2007
55
Chairman and CEO
Previously, Mr. Peterson had been executive vice president and chief financial officer of
Lucent Technologies from 1996-2000. He has also served in various capacities at
Northern Telecom, State Mutual Life Assurance Company and Nortel. He is a member
of the board of directors of Reynolds and Reynolds Co.; a member of the board of
trustees of Worcester Polytechnic Institute; a member of the Council on Foreign
Relations; a member of the World Economic Forum; a member of the board of overseers
of the Amos Tuck School of Business Administration, and a trustee for the Committee
for Economic Development.
5,784,834
1.3%
Joseph P. Landy
2003
2007
43
Co-president of Warburg Pincus
Mr. Landy has been co-president of Warburg Pincus LLC since January 2002 and a
managing general partner since October 2002. Mr. Landy is also a member of the board
of Indus International Inc., Neustar, Inc., The Cobalt Group and ezGov, Inc.
70,095
NM
Mark Leslie
2001
2007
58
Managing director of Leslie

Ventures
Mr. Leslie is currently the managing director of Leslie Ventures, a private investment
company. He is also an adjunct professor at Stanford Graduate School of Business and
Stanford UniversityGraduate Engineering. Mr. Leslie served as chairman of the board
of Veritas Software Corporation until December 2001 and remains on the board as a
director. Mr. Leslie has also worked at Leslie Consulting (owner) and Rugged Digital
Systems (CEO). Mr. Leslie is a director of WebEx Communications, Inc. and a number
of privately held high-technology corporations.
98,721
NM
Anthony P. Terracciano
2003
2007
65
Vice Chairman, American Water

Works Company
Mr. Terracciano is vice chairman, American Water Works Company, Inc. and is the
former chairman of Dime Bancorp. He has held executive positions with First Union
Corporation, First Fidelity Bancorporation, Mellon Bank Corp. and Chase Manhattan
Bank.
148,343
NM
Bruce R. Bond
2002
2006
58
Former chairman and CEO of

PictureTel Corporation
Mr. Bond is the former chairman and CEO of PictureTel Corporation. Mr. Bond is a
retired global telecommunications executive with 23 years of experience in the Bell
System, including Ohio Bell, AT&T, US West and Mountain Bell. He has also spent six
years with British Telecom, in London, UK, responsible for transforming the Products
and Services Group as well as leading the National Business Communications Group.
49,908
NM
Directors
Position
Description
Director Profile(1) (cont.)

Beneficial
Ownership/
(% O/S)
Director
Since
Term
Expires
Age
Position
Description
Dan C. Stanzione
2000
2006
59
President Emeritus, Bell

Laboratories and former COO of
Lucent Technologies
Dr. Stanzione, president emeritus, Bell Laboratories, served as chief operating officer of
Lucent Technologies, Inc. from November 1997 to October 1999 and as the president of Bell
Laboratories at Lucent. Dr. Stanzione is also a director of Quest Diagnostics, Inc.
125,942
NM
Ronald L. Zarrella
2002
2006
54
Chairman and CEO of Bausch &

Lomb
Mr. Zarrella is chairman and CEO of Bausch & Lomb. He was president of General Motors
North America before returning to Bausch & Lomb as chairman and CEO in November
2001. He was previously with Bausch & Lomb from 1985 through 1994, first as president of
its international division, then as president and COO. Mr. Zarrella is also a member of the
board of US FIRST (For Inspiration and Recognition of Science and Technology).
64,939
NM
Philip A. Odeen
2002
2005
69
Retired Chairman of TRW Inc.
Mr. Odeen is the retired chairman of TRW Inc. Mr. Odeen was president and chief executive
officer of BDM, which TRW acquired in 1997, and directed its growth and evolution as a
multi-national information technology (IT) firm. Mr. Odeen has served in senior positions
with the Office of the Secretary of Defense and the National Security Council staff. Mr.
Odeen is also a member of the board of Convergys Corporation, The Reynolds and Reynolds
Company and WGL Holdings, Inc.
125,131
NM
Hellene S. Runtagh
2003
2005
56
Former President and CEO of

Berwind Group
Ms. Runtagh is the former president and CEO of Berwind Group, an enterprise with
businesses in multiple industries. Prior to joining Berwind, from 1997 to 2001, Ms. Runtagh
held senior level positions at Universal Studios and General Electric Company. Ms. Runtagh
is also a member of the board of Covad Communications Group and Lincoln Electric
Holdings.
51,908
NM
Paula Stern
2002
2005
59
Chairwoman of The Stern

Group, Inc.
Dr. Stern is chairwoman of The Stern Group, Inc., an economic analysis and international
business and trade advisory firm. She is currently a member of the US Presidents Advisory
Committee for Trade Policy and Negotiations and previously served as chairwoman of the
US International Trade Commission. Dr. Stern is also a member of the board of Avon
Products, Inc., Hasbro, Inc. and The Neiman Marcus Group.
51,213
NM
Richard F. Wallman
2003
2005
53
Former Senior Vice President

and Chief Financial Officer of
Honeywell International Inc.
Mr. Wallman is the former senior vice president and chief financial officer of Honeywell
International Inc. Mr. Wallman previously served as chief financial officer of AlliedSignal
Inc., prior to its merger with Honeywell. He also held various positions at IBM Corporation
and Chrysler Corporation. Mr. Wallman is also a member of the board of Ariba, Inc.,
ExpressJet Holdings, Inc., Hayes-Lemmerz and Lear Corporation.
14,016
NM
Directors
(1)
Source: January 4, 2005 Proxy and Company Website.
Section 1-78
Shareholder Profile
(1)
Source: January 4, 2005 Proxy and Company Website.
Aviator Shareholder Profile

Institutional Ownership(1)
Warburg Pincus(2)
Shares Held
% of Total
47,955,205
10.0
%
5.2
3.5
3.4
3.1
2.7
2.5
2.5
2.3
2.1
1.5
38.8
%
45.1
49.3
27.4
76.6
%
Dodge & Cox

Fidelity Management & Research
Lord, Abbett & Co.
Barclays Global Investors
Friess Associates
SSgA Funds Management
Vanguard Group
Wellington Management
AIM Management Group
Calamos Advisors
Top 10 Institutions
24,811,519
16,979,323
16,214,594
15,082,667
12,913,000
11,960,949
11,883,167
11,103,715
10,080,020
7,282,718
186,266,877
Top 15 Institutions
Top 20 Institutions
All Other Institutions
Total Institutions
216,434,130
236,594,164
131,293,886
367,888,050
Insider Ownership
Donald Peterson
Louis DAmbrosio
Michael Thurk
Other Officers and Directors

Total Insiders
1,250,174
328,500
214,130
1,792,804
1,013,384
2,806,188
0.3
%
0.1
0.0
0.4
%
0.2
0.6
%
Other Shareholders
Basic Shares Outstanding
109,320,035
480,014,273
22.8
100.0
%
Section 1-89
Aviator Corporate Profile
(1)
(2)
Source: LionShares.
Holdings obtained at a cost basis of approximately $9.16 per share.
Aviator Profile(1)
State of Incorporation
Delaware
Headquarters
Basking Ridge, NJ
Capital Stock
1,700,000,000 authorized common shares (480,014,016 basic shares outstanding).

200,000 authorized preferred shares (none outstanding).
Shareholder Meetings
Annual Meeting: Exact date and time determined by Board of Directors (usually
February).
Special Meeting: Special shareholder meetings can be called by (i) the Chairman of the
Board or (ii) the majority of the directors of the Board. Shareholders can not call special
meetings.
Notice: Notice of a meeting must be given to all shareholders entitled to vote at least 10
business days but not more than 60 days in advance of the meeting.
Record Date: Determined by the Board of Directors; may not be more than 60 days
prior to nor less than 10 days before the related shareholder meeting, dividend, or other
distribution.
Business: Must be brought before meeting by (i) Board of Directors or presiding officer
or (ii) on behalf of any stockholder of record who submits a timely request by certified
mail (return receipt requested) that the proposal be included in the Companys proxy
statement. Such shareholder requests must comply with the provisions of Rule 14a-8 of
the SEC act of 1934, as amended.
Aviator Profile (cont.)(1)
Directors
Cumulative Voting
No (default Delaware state statute).
Shareholder Action by
Written Consent
Yes; unanimous written consent of shareholders required (default Delaware statute).
Actions Requiring Super

Majority Shareholder Vote
(1)
Number: Currently eleven directors; number determined by majority vote of directors

then in office. Board must consist of at least three directors.
Staggered Terms: Yes.
Nomination: New Directors can be nominated by (i) the Board or (ii) any shareholder
who provides proper and timely notice. For notice to be proper and timely, written
notice must be made to the Secretary of the Corporation not later than the close of
business on the 45th calendar day nor earlier than the close of business on the 75th
calendar day prior to the first anniversary of the preceding years annual meeting.
Vacancies: Vacancies and newly created directorships are filled by a majority of the
directors then in office, including vacancies as a result of removal or an enlargement of
the board.
Removal: Any or all Directors may be removed for cause by a majority of
shareholders at any annual or special shareholder meeting.
80% shareholder vote required to amend articles V, VIII and IX of the Charter
including:
Election of directors
Re-election/removal of directors
Sources: SharkRepellent.net, Company Corporate Charter as amended on 1/12/03 and Amended and Restated By-laws.
Aviator Profile (cont.)(1)
(1)
Corporate Charter: As seen above, 80% vote required to amend certain provisions of
relating to director voting and constituency.
Amendments
By-laws: The by-laws may be amended by at least a majority of the total number of
directors then necessary to constitute a full Board. Any by-law may be further amended
or reinstated by a majority of shareholders by vote at either an annual or special
shareholder meeting (provided the amendment is timely included in order of business).
Officer and Director

Indemnification
All Officers and Directors of the Company are fully indemnified by the Company
unless they are found to have not acted in good faith.
Shareholder Rights Plan
Yes, triggered at 15%.
Section 210
Valuation of Aviator
(1)
Section 2-111
Aviator Top-Down Valuation
Summary Valuation of Aviator

Calendar Year Ending December 31,
($ in millions)
Aviator Enterprise Value Range as a Multiple of CY 2006E/2005E
Valuation Method
Discounted Cash Flow Analysis
Comparable Company Analysis
Comparable Acquisition Analysis
BSC REFERENCE RANGE
Enterprise Value Range
$4,500
$4,500
$5,500
$4,500
$5,750
$5,500
$6,500
$6,250
Add:
Cash
Option Proceeds
$688.3
80.4
$688.3
212.0
Less:
Total Debt
Minority Interest
Total Adjustments
$22.0
0.0
$746.7
$22.0
0.0
$878.3
Gross Equity Value
$5,246.7
$7,128.3
Gross Diluted Shares (M)
497.739
508.173
Equity Value Per Share
$10.54
$14.03
$9.53
$9.53
Premium/(Discount)
10.6
%
47.2 %
Revenues
0.83
x
0.89
EBITDA
1.07
x
1.14
6.6
x
7.2
0.83
x
0.89
1.02
x
1.09
6.6
x
7.2
1.02
x
1.09
1.20
x
1.29
8.0
x
8.8
0.83
x
1.16
x
0.89
1.24
CY 2006E/2005E
Net Income(1)
EBIT
EBITDA
$5,395.8
$686.9
$419.0
$374.8
5,029.5
626.4
338.9
298.7
$5,395.8
$686.9
$419.0
$374.8
5,029.5
626.4
338.9
298.7
$5,395.8
$686.9
$419.0
$374.8
5,029.5
626.4
338.9
298.7
8.4
x
9.2
10.7
x
13.3
13.7
x
17.0
13.8
x
17.3
8.0
x
8.8
10.7
x
13.3
13.1
x
16.2
13.8
x
17.3
9.5
x
10.4
13.1
x
16.2
15.5
x
19.2
16.5
x
20.6
6.6
x
9.1
x
10.7
x
14.9
x
13.8
x
18.5
x
$5,395.8
$686.9
$419.0
$374.8
7.2
10.0
13.3
18.4
17.3
23.2
5,029.5
626.4
338.9
298.7
17.1
x
21.5
EBIT
Net
Income
Revenues
16.5
x
20.6
19.1
x
24.0
Assumes 20.696 million in-the-money options at a weighted average strike price of $3.89 and
31.130 million in-the-money options at a weighted average strike price of $6.81.
Valuation Matrix
Market
$9.53
Premium Over:
52-Week High
52-Week Low
AverageLast 30 days
$9.53
17.76
7.76
9.00
0.0
%
(46.3
)
22.8
5.9
$10.00
4.9%
$11.00
15.4%
Potential Price per Share

$12.00
25.9%
$13.00
36.4%
$14.00
46.9%
(43.7)
(38.1)
(32.4)
(26.8)
(21.2)
28.9
11.2
41.8
22.3
54.6
33.4
67.5
44.5
80.4
55.6
x Shares Outstanding plus Exercisable Options

- Option Proceeds
Equity Value
497.739
$80.4
$4,663.0
497.739
$80.4
$4,896.9
497.739
$80.4
$5,394.7
497.739
$80.4
$5,892.4
508.173
$212.0
$6,394.2
508.173
$212.0
$6,902.4
+ Debt
+ Minority Interest
- Cash
Enterprise Value
$22.0
688.3
$3,996.7
$22.0
688.3
$4,230.6
$22.0
688.3
$4,728.4
$22.0
688.3
$5,226.1
$22.0
688.3
$5,727.9
$22.0
688.3
$6,236.1
Equity Value as a Multiple of:

CY 2007E Net Income
CY 2006E Net Income
CY 2005E Net Income
Enterprise Value as a Multiple of:
CY 2007E Revenue
$396.2
367.3
296.8
$5,719.5
CY 2006E Revenue
CY 2005E Revenue
5,395.8
5,029.5
CY 2007E EBITDA
$788.9
CY 2006E EBITDA
CY 2005E EBITDA
686.9
626.4
11.8
x
12.7
15.7
12.4x
13.6x
14.9x
16.1x
17.4x
13.3
16.5
14.7
18.2
16.0
19.9
17.4
21.5
18.8
23.3
0.70
x
0.74
0.79
0.74x
0.83x
0.91x
1.00x
1.09x
0.78
0.84
0.88
0.94
0.97
1.04
1.06
1.14
1.16
1.24
5.1
x
5.8
6.4
5.4x
6.0x
6.6x
7.3x
6.2
6.8
6.9
7.5
7.6
8.3
8.3
9.1
9.1
10.0
9.2x
10.2x
11.1x
12.1x
Note: Financial projections based on Wall Street equity research and Bear Stearns Investment Banking estimates.
CY 2007E EBIT
$513.8
7.8
8.2x
(1) Multiple of Equity Value.
7.9x
CY 2006E EBIT
CY 2005E EBIT
419.0
338.9
x
9.5
11.8
10.1
12.5
11.3
14.0
12.5
15.4
13.7
16.9
14.9
18.4

WACC
PV of Period Cash Flows
15.00%
PV of Terminal Value
PV of Enterprise
Implied FCF Growth Rate
PV per Share(1)
16.00%
TV-Forward Revenue Multiple

0.85x
1.00x
1.15x
TV-Forward EBITDA Multiple

6.5x
7.5x
8.5x
TV-Forward EBIT Multiple

9.0x
10.0x
11.0x
TV-Forward Unlevered NI Multiple

14.0x
15.0x
16.0x
$1,345.3
$1,345.3
$1,345.3
$1,345.3
$1,345.3
$1,345.3
$1,345.3
$1,345.3
$1,345.3
$1,345.3
$1,345.3
3,075.8
3,618.6
4,161.3
3,539.5
4,084.1
4,628.6
3,419.5
3,799.5
4,179.4
3,510.7
3,761.5
$1,345.3
4,012.3
$4,421.11
$4,963.89
$5,506.68
$4,884.87
$5,429.41
$5,973.95
$4,764.87
$5,144.82
$5,524.77
$4,856.06
$5,106.82
$5,357.59
6.8
%
7.9
%
8.8
%
7.8
%
8.7
%
9.4
%
7.6
%
8.3
%
8.8
%
7.7
%
8.2
%
8.6
%
$10.32
$11.41
$12.49
$11.25
$12.34
$13.42
$11.01
$11.77
$12.53
$11.19
$11.69
$12.19
$1,315.7
$1,315.7
$1,315.7
$1,315.7
$1,315.7
$1,315.7
$1,315.7
$1,315.7
$1,315.7
$1,315.7
$1,315.7
$1,315.7
2,960.3
3,482.7
4,005.1
3,406.6
3,930.7
4,454.8
3,291.2
3,656.8
4,022.5
3,378.9
3,620.3
3,861.6
PV of Enterprise
$4,276.0
$4,798.4
$5,320.8
$4,722.3
$5,246.4
$5,770.5
$4,606.8
$4,972.5
$5,338.2
$4,694.6
$4,935.9
$5,177.3
7.7
%
8.9
%
9.8
%
8.7
%
9.6
%
10.4
%
8.5
%
9.2
%
9.8
%
8.7
%
9.1
%
9.5
%
$10.03
$11.08
$12.12
$10.92
$11.97
$13.02
$10.69
$11.42
$12.15
$10.87
$11.35
$11.83
$1,287.0

PV per Share(1)
$1,287.0
$1,287.0
$1,287.0
$1,287.0
$1,287.0
$1,287.0
$1,287.0
$1,287.0
$1,287.0
$1,287.0
$1,287.0
17.00%
2,850.1
3,353.0
3,856.0
3,279.8
3,784.4
4,289.0
3,168.6
3,520.7
3,872.8
3,253.1
3,485.5
3,717.9
PV of Enterprise
$4,137.1
$4,640.1
$5,143.1
$4,566.9
$5,071.5
$5,576.0
$4,455.7
$4,807.7
$5,159.8
$4,540.2
$4,772.5
$5,004.9
8.6
%
9.8
%
10.7
%
9.7
%
10.6
%
11.3
%
9.4
%
10.1
%
10.7
%
9.6
%
10.1
%
10.5
%
$9.76
$10.76
$11.76
$10.61
$11.62
$12.63
$10.39
$11.09
$11.80
$10.56
$11.02
$11.49
$1,259.5

PV per Share(1)
$1,259.5
$1,259.5
$1,259.5
$1,259.5
$1,259.5
$1,259.5
$1,259.5
$1,259.5
$1,259.5
$1,259.5
$1,259.5
2,744.9
3,229.3
3,713.6
3,158.7
3,644.7
4,130.6
3,051.6
3,390.7
3,729.8
3,133.0
3,356.8
3,580.6
PV of Enterprise
$4,004.3
$4,488.7
$4,973.1
$4,418.2
$4,904.1
$5,390.1
$4,311.1
$4,650.2
$4,989.2
$4,392.5
$4,616.3
$4,840.1
9.6
%
10.8
%
11.7
%
10.6
%
11.5
%
12.3
%
10.4
%
11.1
%
11.7
%
10.6
%
11.0
%
11.4
%
$9.49
$10.46
$11.42
$10.32
$11.29
$12.26
$10.10
$10.78
$11.46
$10.27
$10.71
$11.16

PV per Share(1)
18.00%
Free Cash Flow AnalysisWholeCo

($ in millions)
Projected FYE September 30,
2007
2008
2005
2006
Revenue
$4,934.0
$5,316.0
$5,635.0
EBITDA
$615.4
$659.5
Depreciation & Amortization
(294.7
)
EBIT
EBIT Margin
Taxes
Tax Rate
Unlevered Net Income
(Increase)/Decrease in Working Capital
Capital Expenditures & Additions to Intangible Assets
Other Cash Flows
2009
2010
$5,973.1
$6,331.6
$6,711.5
$769.2
$847.9
$952.8
$1,010.0
(266.1
)
(273.3
)
(280.5
)
(288.0
)
(305.3
)
$320.7
6.5
%
$393.4
7.4
%
$495.9
8.8
%
$567.4
9.5
%
$664.8
10.5
%
$704.7
10.5
%
($38.7
)
12.1
%
($42.8
)
10.9
%
($109.1
)
22.0
%
($192.9
)
34.0
%
($226.0
)
34.0
%
($239.6
)
34.0
%
$282.0
$350.6
$386.8
$374.5
$438.8
$465.1
$294.7
(49.1
)
(155.2
)
3.4
$266.1
(65.2
)
(172.7
)
9.6
$273.3
(26.0
)
(171.6
)
(11.4
)
$280.5
(25.5
)
(173.5
)
(9.0
)
$288.0
(23.8
)
(175.4
)
(9.8
)
$451.1
$447.1
$517.7
Unlevered
Free Cash Flow
$375.8
$388.4
Note: Discounted back to May 01, 2005.
(1) Assumes $855.0 million cash, $80.4 million option proceeds, $188.0 million debt and 500.710 gross diluted shares.
% Growth
NA
3
%
16
%
(1
%)
16
%
Comparable Company Trading AnalysisAviator

($ in millions, except per share amounts)
Company
Stock Price
05/09/05
Equity
Value
Enterprise
Value
Enterprise Value/CY 2005E

Revenue
EBITDA
EBIT

Revenue
EBITDA
EBIT
P/E
CY 2005E
CY 2006E
Aviator
$9.08
$4,185.6
$ 3,518.6
0.70
x
5.6
x
10.4x
0.65
x
5.1
x
8.4
x
15.7
x
12.7
x
Alcatel
10.95
15,286.5
14,812.2
6.8x
9.6x
Aspect
Cisco
Inter-Tel
InterVoice
Nortel
Polycom
9.02
18.21
19.23
11.00
2.62
15.66
575.3
117,893.7
588.3
434.9
9,330.1
1,562.4
415.5
101,368.7
373.4
394.7
10,079.1
1,347.5
0.88
x
1.12
3.93
0.83
2.35
1.14
2.33
4.9
11.1
5.8
11.7
12.6
10.1
6.6
12.6
6.4
15.1
19.9
13.9
0.85
x
1.06
3.53
0.77
2.11
1.08
2.10
6.4
x
4.3
9.9
5.1
9.2
9.1
8.5
9.0
x
5.4
11.2
5.8
11.4
12.5
11.5
14.5
x
15.8
19.3
13.8
18.4
29.7
20.3
12.0
x
13.5
17.0
12.0
16.9
18.6
17.2
1.80
x
1.14
9.0
x
10.1
12.0x
1.64
x
1.08
7.5
x
8.5
9.6
x
11.2
18.8
x
18.4
15.3
x
16.9
1.14
x
0.81
0.82
0.39
0.46
8.3
x
5.6
5.4
6.1
5.6
9.6x
0.95
x
0.76
0.75
0.36
0.44
6.7
x
5.1
4.8
5.1
4.3
8.0
x
8.2
6.8
6.7
10.0
14.8
x
13.7
12.5
11.5
NM
12.5
x
12.1
10.8
9.0
19.7
0.72
x
0.81
6.2
x
5.6
12.8x
0.65
x
0.75
5.2
x
5.1
7.9
x
8.0
13.1
x
13.1
12.8
x
12.1
$10.35
12.69
40.95
9.78
25.07
12.94
24.90
$10.02
7.59
15.35
8.80
16.10
17.31
14.18
$7.99
5.94
10.03
5.85
11.75
14.96
10.93
$10.63
12.87
39.51
9.78
24.28
13.12
24.17
$10.35
7.35
15.19
8.49
14.20
14.06
13.16
$9.06
6.01
10.89
6.40
11.05
12.01
11.14
$10.08
10.86
12.91
9.68
12.38
19.09
13.53
$10.33
11.37
13.98
10.32
13.89
15.12
14.12
12.98
9.62
9.73
5.38
6.14
11.90
8.51
8.30
9.15
8.55
7.98
7.64
6.95
8.09
20.02
11.74
9.68
9.58
5.42
6.28
10.66
8.55
8.11
8.56
7.36
8.17
8.38
7.21
7.13
9.88
10.26
9.62
8.89
8.27
NA
10.65
10.36
9.40
8.10
15.92
Mean
Median
Enterprise / Telecom Services
Black Box
34.21
607.6
637.4
Convergys
CGI Group
Getronics
Unisys
13.04
5.61
1.62
6.88
1,862.9
2,506.0
1,372.2
2,320.6
2,163.4
2,684.5
1,335.0
2,711.2
Mean
Median
AviatorImplied Enterprise Value
Alcatel
Aspect
Cisco
Inter-Tel
InterVoice
Nortel
Polycom
Enterprise/Telecom Services
Black Box
Convergys
CGI Group
Getronics
Unisys
12.6
9.1
8.1
9.7
27.3
9.6
Comparable Transaction Multiples and Implied ValuationAviator

($ in millions)
Target
Target
Transaction
Date
Equity
Value
Enterprise
Value
Nuance
05/09/2005
$212.5
$113.8
Avaya
Tenovis
11/18/2004
370.5
635.5
1.49
x
1.00
Polycom
Alcatel
Nortel
InterVoice
PictureTel
Genesys
Periphonics
Brite Voice
05/22/2001
09/28/1999
08/23/1999
04/26/1999
357.7
1,526.8
419.6
172.0
358.4
1,465.3
392.0
159.5
0.92
7.25
2.27
0.97
6.5
x
6.7
26.1
14.7
10.5
Nortel
PEC Solutions
04/26/2005
471.1
448.0
IBM
Warburg-Providence
Cisco
Avaya
CGI
GTCR
Corio
Telcordia
NetSolve
Expanets
AMS
Syniverse
01/25/2005
11/18/2004
09/09/2004
11/26/2003
03/09/2004
02/14/2002
182.0
1,350.0
128.0
152.0
858.0
770.0
174.1
1,350.0
89.0
152.0
795.7
770.0
1.65
x
2.94
1.53
2.21
0.36
0.78
2.45
AviatorImplied Valuation
Acquiror
Target
ScanSoft
Nuance
Avaya
Tenovis
Polycom
PictureTel
Alcatel
Genesys
Nortel
Periphonics
InterVoice
Brite Voice
Nortel
PEC Solutions
IBM
Corio
Warburg-Providence
Telcordia
Cisco
NetSolve
Avaya
Expanets
CGI
AMS
GTCR
Syniverse
Revenue
Enterprise Value/Forward
EBITDA
Acquiror
ScanSoft
NA
EBIT
Forward
P/E
49.5
x
NA
42.1
x
NA
15.7
33.8
19.9
16.8
20.7
53.0
31.1
27.4
11.9
x
NA
7.7
NA
NA
8.9
6.3
13.2
x
NM
8.9
NM
NM
17.3
7.4
22.5
x
NM
NA
NM
NA
31.3
NA
$16.21
11.35
10.56
72.93
23.86
11.05
NA
9.48
9.73
33.57
19.56
14.40
NM
NA
11.55
23.14
14.24
12.25
NM
NA
11.58
29.39
17.31
15.27
$17.77
30.46
16.57
23.27
5.02
9.21
25.64
$16.12
NA
10.96
NA
NA
12.37
9.24
$9.95
NA
7.19
NA
NA
12.57
6.23
$12.57
NA
NA
NA
NA
17.42
NA
Note: Based on Aviators Forward Revenue of $4934.0 million, Forward EBITDA of $615.4 million, Forward EBIT of $320.7 million, and Forward Net Income of $276.2 million.
Note: Based on Aviators Cash of $855.0 million, Debt of $188.0 million, and Option Proceeds of $80.4 million.
Weighted Average Cost of Capital AnalysisAviator

Assumptions
Unlevered Beta Calculation
(1)
Risk-free Rate
4.39 %
Market Risk Premium(2)
7.20
Aviator Marginal Tax Rate
12.0
Comparable Company
Alcatel
Aspect
Cisco
Inter-Tel
InterVoice
Nortel
Polycom
Mean
Black Box
Convergys Corporation
CGI Group
Getronics
Unisys
Mean
Consolidated Mean
Aviator
Barra Beta
Debt/Equity(3)
Unlevered Beta(4)
1.62
1.64
1.45
1.32
1.41
2.21
1.61
1.61
39.1%
0.1
0.0
0.0
2.4
40.1
0.0
11.7%
1.20
1.64
1.45
1.32
1.38
1.63
1.61
1.46
1.24
1.14
1.00
1.99
1.75
1.43
1.53
2.44
6.7%
18.1
14.7
15.1
45.3
20.0%
15.1%
4.5
1.17
0.98
0.89
1.76
1.25
1.21
1.36
2.35
WACC CalculationBased on Aviators Unlevered Beta

Debt/
Equity(4)
10.0
%
20.0
30.0
40.0
50.0
Debt/
Capitalization
9.1%
16.7
23.1
28.6
33.3
Levered
Beta(5)
2.56
2.76
2.97
3.18
3.38
Cost of
Equity(6)
22.8%
24.3
25.8
27.3
28.7
6.00%
21.2%
7.00%
21.3%
21.1
21.0
21.0
20.9
21.3
21.2
21.2
21.2
Pre-Tax Cost of Debt

8.00%
21.4%
21.4
21.4
21.5
21.5
9.00%
21.4%
21.6
21.7
21.7
21.8
10.00%
21.5%
21.7
21.9
22.0
22.1
WACC CalculationBased on Industry Average Unlevered Beta

Debt/
Equity(4)
10.0
%
20.0
30.0
40.0
50.0
Debt/
Capitalization
9.1%
16.7
23.1
28.6
33.3
Levered
Beta(6)
1.53
1.66
1.78
1.90
2.03
Cost of
Equity(7)
15.4%
16.3
17.2
18.1
19.0
6.00%
14.5%
7.00%
14.6%
14.5
14.5
14.4
14.4
14.6
14.7
14.7
14.7

8.00%
14.7%
14.8
14.9
14.9
15.0
9.00%
14.7%
14.9
15.1
15.2
15.3
Note: Based on Aviators Forward Revenue of $4934.0 million, Forward EBITDA of $615.4 million, Forward EBIT of $320.7 million, and Forward Net Income of $276.2 million.
Note: Based on Aviators Cash of $855.0 million, Debt of $188.0 million, and Option Proceeds of $80.4 million.
10.00%
14.8%
15.1
15.3
15.4
15.6
Section 2-212
Aviator Sum-of-the-Parts
Valuation
Note: Barra Beta as of May 9, 2005.
WACC = Kd * D/(D+E) + Ke * E/(D+E) .
(1) Yield on 20-year Treasury Bond as of March 9, 2005.
(2) Long-term horizon expected equity risk premium. Source: Ibbotson Associates.
(3) Total debt divided by market value of equity.
(4) Unlevered Beta = Predicted Beta / (1+ (1-tax)*D/E).
(5) Levered Beta = Unlevered Beta * (1+(1-tax)*D/E)).
(6) Cost of Equity = Risk-free Rate + (Levered Beta * Market Risk Premium) + Market Capitalization Premium.
Sum-of-the-Parts Valuation
($ in millions)
Value Range as a Multiple of CY 2006E/2005E
Valuation Method
Global Communications Group
Global Services
Enterprise Value Range
$2,000
$2,500
$2,500
$3,750
Revenues
$4,500
$6,250
EBIT
0.80
x
1.01
x
7.8
x
9.8
x
12.7
15.9
x
0.86
1.08
9.1
11.3
16.7
20.9
0.86
0.92
BSC REFERENCE RANGE
EBITDA
0.83
x
0.89
x
1.29
5.8
1.38
6.1
1.16
x
6.5
x
1.24
7.18
8.7
9.5
9.2
11.4
9.1
x
10.7
x
9.97
13.3
CY 2006E/2005E
Unlevered Net
Income
14.5
Revenues
EBITDA
EBIT
Unlevered
Net Income
18.1
x
19.0
$2,486.8
$256.3
$156.9
$138.0
x
23.8
2,319.0
220.4
119.5
105.1
16.2
2,908.9
433.0
263.4
231.8
2,710.5
406.7
219.8
193.4
$5,395.8
$689.3
$420.2
$369.8
5,029.5
627.1
339.3
298.6
14.2
10.8
17.1
12.9
19.4
14.9
x
12.2
x
16.9
18.4
15.1
x
20.9
Section 2-313
Group Valuation
Summary ValuationGlobal Communications Group

($ in millions)
Global Communications Solutions Value Range as a Multiple of CY 2006E/2005E
Valuation Method
BSC REFERENCE RANGE
Enterprise
Value Range
$2,000
$2,000
$2,200
$2,000
$2,600
$2,500
$2,600
$2,500
Revenues
0.80
x
0.86
0.80
x
0.86
0.88
x
0.95
0.80
x
0.86
EBITDA
1.05
x
1.12
7.8
x
9.1
1.01
x
1.08
1.05
x
1.12
1.01
x
1.08
EBIT
12.7
x
16.7
10.1
x
11.8
7.8
9.8
9.1
8.6
CY 2006E/2005E

14.5
x
19.0
16.6
x
21.8
12.7
15.9
11.3
16.7
10.1
14.0
10.1
11.8
7.8
9.1
Revenues
EBITDA
EBIT
Unlevered
Net Income
$2,486.8
$256.3
$156.9
$138.0
18.8
x
24.7
2,319.0
220.4
119.5
105.1
14.5
18.1
$2,486.8
$256.3
$156.9
$138.0
20.9
19.0
23.8
2,319.0
220.4
119.5
105.1
16.6
15.9
18.8
$2,486.8
$256.3
$156.9
$138.0
18.4
21.8
20.9
24.7
2,319.0
220.4
119.5
105.1
9.8
12.7
15.9
14.5
18.1
$2,486.8
$256.3
$156.9
$138.0
11.3
16.7
20.9
19.0
23.8
2,319.0
220.4
119.5
105.1
Valuation Matrix at Selected Enterprise ValuesGlobal Communications

Segment
($ in millions)
Enterprise Value
$2,200.0
$2,300.0
$2,000.0
$2,100.0
$2,400.0
$2,500.0
$172.6
138.0
105.1
11.6 x
14.5
19.0
12.2 x
15.2
20.0
12.7 x
15.9
20.9
13.3 x
16.7
21.9
13.9 x
17.4
22.8
14.5 x
18.1
23.8
CY 2007E Revenue
CY 2006E Revenue
CY 2005E Revenue
$2,636.0
2,486.8
2,319.0
0.76 x
0.80
0.86
0.80 x
0.84
0.91
0.83 x
0.88
0.95
0.87 x
0.92
0.99
0.91 x
0.97
1.03
0.95 x
1.01
1.08
CY 2007E EBITDA
CY 2006E EBITDA
CY 2005E EBITDA
$298.3
256.3
220.4
6.7 x
7.8
9.1
7.0 x
8.2
9.5
7.4 x
8.6
10.0
7.7 x
9.0
10.4
8.0 x
9.4
10.9
8.4 x
9.8
11.3
CY 2007E EBIT
CY 2006E EBIT
CY 2005E EBIT
$196.2
156.9
119.5
10.2 x
12.7
16.7
10.7 x
13.4
17.6
11.2 x
14.0
18.4
11.7 x
14.7
19.2
12.2 x
15.3
20.1
12.7 x
15.9
20.9 x

CY 2007E Unlevered Net Income
Note: EBITDA, EBIT, and Unlevered Net Income are all adjusted for allocation of corporate overhead.
Discounted Cash Flow AnalysisGlobal Communications Group

WACC
PV of Enterprise
14.50%

PV of Enterprise
15.00%
$502.9
1,667.7
$2,170.7
9.4%
15.50%

PV of Enterprise
$508.7
1,700.2
$2,208.8
8.9%

PV of Enterprise
Forward Revenue Multiple

1.00x
1.10x
1.20x
$497.3
1,636.1
$2,133.3
9.9%
16.00%
$491.7
1,605.1
$2,096.8
10.4%
$508.7
1,870.2
$2,378.9
9.4%
$502.9
1,834.5
$2,337.4
9.9%
$497.3
1,799.7
$2,296.9
10.4%
$491.7
1,765.6
$2,257.3
10.9%
$508.7
2,040.2
$2,548.9
9.8%
$502.9
2,001.3
$2,504.2
10.3%
$497.3
1,963.3
$2,460.5
10.8%
$491.7
1,926.1
$2,417.9
11.3%
Forward EBITDA Multiple

8.0x
9.0x
10.0x
$508.7
1,786.1
$2,294.7
9.2%
$502.9
1,752.0
$2,254.9
9.7%
$497.3
1,718.7
$2,216.0
10.1%
$491.7
1,686.2
$2,177.9
10.6%
$508.7
2,009.3
$2,518.0
9.8%
$502.9
1,971.0
$2,473.9
10.2%
$497.3
1,933.6
$2,430.8
10.7%
$491.7
1,897.0
$2,388.7
11.2%
$508.7
2,232.6
$2,741.3
10.2%
$502.9
2,190.0
$2,692.9
10.7%
$497.3
2,148.4
$2,645.7
11.2%
$491.7
2,107.8
$2,599.5
11.7%
Forward EBIT Multiple

9.5x
10.5x
11.5x
$508.7
1,529.3
$2,038.0
8.3%
$502.9
1,500.1
$2,003.0
8.8%
$497.3
1,471.6
$1,968.9
9.3%
$491.7
1,443.8
$1,935.5
9.8%
$508.7
1,690.3
$2,198.9
8.9%
$502.9
1,658.0
$2,160.9
9.4%
$497.3
1,626.5
$2,123.8
9.9%
$491.7
1,595.8
$2,087.5
10.3%
$508.7
1,851.2
$2,359.9
9.4%
$502.9
1,815.9
$2,318.8
9.8%
$497.3
1,781.4
$2,278.7
10.3%
$491.7
1,747.7
$2,239.5
10.8%
Free Cash Flow AnalysisGlobal Communications Group

($ in millions)
2007
2008
2005
2006
Revenue
$2,275.3
$2,450.1
$2,597.1
EBITDA
$212.3
$244.8
(101.7
)
EBIT
EBIT Margin
Taxes
Tax Rate
Deferred Taxes
Capital Expenditures
Other Cash Flows
Unlevered Free Cash Flow
2009
2010
$2,752.9
$2,918.1
$3,093.2
$290.9
$320.4
$359.7
$406.2
(98.8
)
(101.4
)
(104.1
)
(106.9
)
(113.3
)
$110.6
4.9
%
$146.0
6.0
%
$189.4
7.3
%
$216.3
7.9
%
$252.8
8.7
%
$292.9
9.5
%
($13.3
)
12.1
%
($15.9
)
10.9
%
($41.7
)
22.0
%
($73.5
)
34.0
%
($86.0
)
34.0
%
($99.6
)
34.0
%
$97.3
$130.1
$147.8
$142.8
$166.8
$193.3
$101.7
(16.9
)
(53.5
)
1.2
$98.8
(24.2
)
(64.1
)
3.6
$101.4
(9.6
)
(63.7
)
(4.2
)
$104.1
(9.4
)
(64.4
)
(3.3
)
$106.9
(8.8
)
(65.1
)
(3.6
)
$129.6
$144.2
$171.6
$169.7
$196.2
Comparable Company Multiples and Implied ValuationGlobal

Communications Group
($ in millions)
Stock
Price
05/09/05
Company
Aviator
Equity
Value
Enterprise
Value

Revenue
EBITDA
EBIT

Revenue
EBITDA
EBIT
P/E
CY 2005E
CY 2006E
$9.08
$4,185.6
$3,518.6
0.70
x
5.6
10.4
x
0.65
5.1
x
8.4
x
15.7
x
12.7 x
10.95
15,286.5
14,812.2
0.88
x
6.8
9.6
x
0.85
6.4
x
9.0
x
14.5
x
12.0 x
Alcatel
Aspect
9.02
575.3
415.5
1.12
4.9
6.6
1.06
4.3
5.4
15.8
13.5
Cisco
18.21
117,893.7
101,368.7
3.93
11.1
12.6
3.53
9.9
11.2
19.3
17.0
Inter-Tel
19.23
588.3
373.4
0.83
5.8
6.4
0.77
5.1
5.8
13.8
12.0
InterVoice
11.00
434.9
394.7
2.35
11.7
15.1
2.11
9.2
11.4
18.4
16.9
2.62
9,330.1
10,079.1
1.14
12.6
19.9
1.08
9.1
12.5
29.7
18.6
15.66
1,562.4
1,347.5
2.33
10.1
13.9
2.10
8.5
11.5
20.3
17.2
1.80
x
1.14
9.0
1.64x
1.08
7.5
x
8.5
9.6
x
11.2
18.8
x
18.4
15.3 x
10.1
12.0
x
12.6
Alcatel
$2,045.3
$1,501.5
$1,145.4
$2,108.1
$1,649.2
$1,414.7
$1,525.8
$1,662.8
Aspect
2,585.7
1,072.9
783.4
2,626.5
1,091.5
844.6
1,663.9
1,858.5
Cisco
9,108.5
2,438.6
1,505.0
8,773.4
2,549.4
1,757.1
2,027.0
2,348.5
Inter-Tel
1,913.5
1,286.1
768.6
1,912.3
1,302.3
917.0
1,454.6
1,659.1
InterVoice
5,443.4
2,570.3
1,809.1
5,257.9
2,366.2
1,785.7
1,934.1
2,331.9
Nortel
2,643.3
2,784.2
2,375.0
2,682.5
2,339.8
1,965.8
3,125.2
2,562.3
Polycom
5,402.9
2,233.3
1,664.8
5,234.1
2,172.2
1,802.9
2,138.4
2,375.6
Nortel
Polycom
Mean
Median
Global Communications
Implied Enterprise Value
16.9
Group
Comparable M&A Transaction Multiples and Implied ValuationGlobal

Communications Group
($ in millions)
Acquiror
ScanSoft
Avaya
UT Starcom
Cisco
Melita
Polycom
Cisco
Alcatel
Nortel
InterVoice
Cisco
Nortel
Lucent
Target
Nuance
Tenovis
Commworks (3Com)
Latitude
Concerto
PictureTel
Active Voice
Genesys
Periphonics
Brite Voice
Geotel
Bay Networks
Octel
Transaction
Date
05/09/2005
11/18/2004
04/23/2004
11/12/2003
10/06/2003
05/22/2001
11/10/2000
09/28/1999
08/23/1999
04/26/1999
04/12/1999
06/15/1998
07/17/1997
Target
Equity
Value
$212.5
370.5
100.0
92.5
141.9
357.7
295.3
1,526.8
419.6
172.0
1,914.1
8,520.3
1,755.8
Enterprise
Value
$113.8
635.5
100.0
69.9
113.8
358.4
275.8
1,465.3
392.0
159.5
1,854.4
7,912.7
1,665.5
Revenue
1.49x
1.00x
0.91x
2.20x
1.07x
0.92x
3.21x
7.25x
2.27x
0.97x
25.73x
2.70x
2.74x
EBITDA
NA
6.5x
NA
NA
18.0x
6.7x
47.6x
26.1x
14.7x
10.5x
85.7x
NA
14.4x
$3,463.3
2,319.0
2,110.3
NA
1,432.8
NA
NM
NA
NA
NM
NA
NA
5,101.8
2,481.3
2,133.5
7,443.9
NM
NM
2,249.4
NM
6,261.2
6,354.0
NA
3,967.6
1,476.8
NM
NM
3,240.2
2,314.5
NM
NA
3,174.1
NA
2,748.1
1,875.9
NM
NM
2,377.7
2,007.3
NM
NA
2,724.2
NA
4,006.0
2,176.5
NM
NM
3,270.0
2,881.0
NM
NA
3,648.5
EBIT
49.5x
NA
NA
NA
23.0x
15.7x
96.3x
33.8x
19.9x
16.8x
92.3x
NA
22.8x
Forward
P/E
42.1x
NA
NA
NA
38.1x
20.7x
122.1x
53.0x
31.1x
27.4x
132.5x
NA
34.7x
Global Communication GroupImplied Valuation

Acquiror
Target
ScanSoft
Avaya
UT Starcom
Nuance
Tenovis
Commworks (3Com)
Cisco
Melita
Polycom
Cisco
Alcatel
Nortel
InterVoice
Cisco
Nortel
Lucent
Latitude
Concerto
PictureTel
Active Voice
Genesys
Periphonics
Brite Voice
Geotel
Bay Networks
Octel
Note: The P/E multiple is applied to Unlevered Net Income.

Note: Based on Enterprise Communications segment Forward Revenue of $2319.0 million, Forward EBITDA of $220.4 million, Forward EBIT of $119.5 million, and Forward Net Income of $105.1
million.
Cost of Capital AnalysisEnterprise Communications Group

Assumptions
Risk-free Rate(1)
4.39 %
7.20
Harris Marginal Tax Rate
12.0
Comparable Company
Barra
Beta
Debt/
Equity(3)
Unlevered
Beta(4)
Global Communications Group

Alcatel
Aspect
Cisco
Inter-Tel
InterVoice
Nortel
Polycom
Consolidated Mean
1.62
1.64
1.45
1.32
1.41
2.21
1.61
1.61
39.1
0.1
0.0
0.0
2.4
40.1
0.0
11.7
1.20
1.64
1.45
1.32
1.38
1.63
1.61
1.46
Aviator
2.44
4.5
2.35
WACC CalculationBased on Industry Average Unlevered BetaGlobal Communications Group

Debt/
Equity(4)
Debt/
Capitalization
10.0 %
20.0
30.0
40.0
50.0
9.1 %
16.7
23.1
28.6
33.3
Levered
Beta(5)
1.59
1.72
1.85
1.98
2.11
Cost of
Equity(6)
6.00%
7.00%

8.00%
9.00%
10.00%
15.9 %
16.8
17.7
18.6
19.6
14.9 %
14.9
14.8
14.8
14.8
15.0 %
15.0
15.0
15.1
15.1
15.1 %
15.2
15.3
15.3
15.4
15.1 %
15.3
15.5
15.6
15.7
15.2 %
15.5
15.7
15.8
16.0

Note: Based on Enterprise Communications segment Forward Revenue of $2319.0 million, Forward EBITDA of $220.4 million, Forward EBIT of $119.5 million, and Forward Net Income of $105.1
million.
Section 2-414
Enterprise Services Valuation

WACC = Kd * D/(D+E) + Ke * E/(D+E) .
(1) Yield on 20-year Treasury Bond as of May 9, 2005.
(4) Unlevered Beta = Predicted Beta/(1+ (1-tax)*D/E).
(5) Levered Beta = Unlevered Beta * (1+(1-tax)*D/E).
Summary ValuationGlobal Services

($ in millions)
Global Services Value Range as a Multiple of CY 2006E/2005E
Valuation Method
BSC REFERENCE RANGE
CONFIDENTIAL
Enterprise
Value Range
$2,500
$2,500
$2,750
$2,500
$3,500
$3,500
$4,000
$3,750
Revenues
0.80
x
0.86
0.86
x
0.92
0.95
x
1.01
0.86
x
0.92
EBITDA
1.05
x
1.12
7.8
x
6.1
1.20
x
1.29
EBIT
CY 2006E/2005E
Revenues
10.8
x
12.9
15.1
x
18.1
Unlevered
Net Income
EBITDA
EBIT
$2,908.9
$433.0
$263.4
$231.8
2,710.5
406.7
219.8
193.4
9.5
x
11.4
8.1
x
8.6
13.3
x
15.9
5.8
8.1
9.5
13.3
10.8
15.1
$2,908.9
$433.0
$263.4
$231.8
6.1
8.6
11.4
15.9
12.9
18.1
2,710.5
406.7
219.8
193.4
1.38
x
1.48
6.4
9.2
10.4
15.2
11.9
17.3
$2,908.9
$433.0
$263.4
$231.8
6.8
9.8
12.5
18.2
14.2
20.7
2,710.5
406.7
219.8
193.4
1.29
x
1.38
5.8
8.7
9.5
14.2
10.8
16.2
$2,908.9
$433.0
$263.4
$231.8
6.1
9.2
11.4
17.1
12.9
19.4
2,710.5
406.7
219.8
193.4
56
Valuation Matrix at Selected Enterprise ValuesGlobal Services

($ in millions)
Enterprise Value
$3,000.0
$3,250.0
$2,500.0
$2,750.0
$3,500.0
$3,750.0
$279.5
231.8
193.4
8.9 x
10.8
12.9
9.8 x
11.9
14.2
10.7 x
12.9
15.5
11.6 x
14.0
16.8
12.5 x
15.1
18.1
13.4 x
16.2
19.4
CY 2007E Revenue
CY 2006E Revenue
CY 2005E Revenue
$3,083.5
2,908.9
2,710.5
0.81 x
0.86
0.92
0.89 x
0.95
1.01
0.97 x
1.03
1.11
1.05 x
1.12
1.20
1.14 x
1.20
1.29
1.22 x
1.29
1.38
CY 2007E EBITDA
CY 2006E EBITDA
CY 2005E EBITDA
$491.8
433.0
406.7
5.1 x
5.8
6.1
5.6 x
6.4
6.8
6.1 x
6.9
7.4
6.6 x
7.5
8.0
7.1 x
8.1
8.6
7.6 x
8.7
9.2
CY 2007E EBIT
CY 2006E EBIT
CY 2005E EBIT
$317.6
263.4
219.8
7.9 x
9.5
11.4
8.7 x
10.4
12.5
9.4 x
11.4
13.6
10.2 x
12.3
14.8
11.0 x
13.3
15.9
11.8 x
14.2
17.1

CONFIDENTIAL
56
Discounted Cash Flow AnalysisGlobal Services

($ in millions)
WACC
PV of Enterprise
13.50%

PV of Enterprise
14.00%
$863.5
1,622.1
$2,485.6
4.7%
14.50%

PV of Enterprise
$873.3
1,653.9
$2,527.2
4.3%

PV of Enterprise
Forward Revenue Multiple

0.80x
0.95x
1.10x
$853.8
1,591.0
$2,444.8
5.2%
15.00%
$844.3
1,560.7
$2,405.0
5.6%
$873.3
1,964.0
$2,837.4
5.6%
$863.5
1,926.2
$2,789.7
6.1%
$853.8
1,889.3
$2,743.1
6.5%
$844.3
1,853.3
$2,697.6
7.0%
$873.3
2,274.1
$3,147.5
6.6%
$863.5
2,230.4
$3,093.8
7.1%
$853.8
2,187.6
$3,041.4
7.6%
$844.3
2,145.9
$2,990.2
8.0%
Forward EBITDA Multiple

5.0x
6.0x
7.0x
$873.3
1,920.3
$2,793.6
5.4%
$863.5
1,883.3
$2,746.8
5.9%
$853.8
1,847.3
$2,701.0
6.4%
$844.3
1,812.0
$2,656.3
6.8%
$873.3
2,304.3
$3,177.7
6.7%
$863.5
2,260.0
$3,123.5
7.2%
$853.8
2,216.7
$3,070.5
7.6%
$844.3
2,174.4
$3,018.7
8.1%
$873.3
2,688.4
$3,561.7
7.6%
$863.5
2,636.7
$3,500.1
8.1%
$853.8
2,586.2
$3,439.9
8.6%
$844.3
2,536.8
$3,381.1
9.0%
Forward EBIT Multiple

7.5x
8.5x
9.5x
$873.3
2,052.3
$2,925.7
5.9%
$863.5
2,012.8
$2,876.3
6.4%
$853.8
1,974.3
$2,828.1
6.9%
$844.3
1,936.6
$2,780.9
7.3%
$873.3
2,326.0
$3,199.3
6.8%
$863.5
2,281.2
$3,144.7
7.2%
$853.8
2,237.5
$3,091.3
7.7%
$844.3
2,194.8
$3,039.1
8.2%
$873.3
2,599.6
$3,472.9
7.4%
$863.5
2,549.6
$3,413.1
7.9%
$853.8
2,500.7
$3,354.5
8.4%
$844.3
2,453.0
$3,297.3
8.9%
CONFIDENTIAL
56
Free Cash Flow AnalysisGlobal Services

($ in millions)
2007
2008
2005
2006
Revenue
$2,658.7
$2,865.9
$3,037.9
EBITDA
$403.1
$417.5
(193.0
)
EBIT
EBIT Margin
Taxes
Tax Rate
Deferred Taxes
Capital Expenditures
Other Cash Flows
Unlevered Free Cash Flow
2009
2010
$3,220.2
$3,413.5
$3,618.3
$479.5
$528.7
$594.3
$672.2
(168.4
)
(173.0
)
(177.6
)
(182.3
)
(193.2
)
$210.1
7.9
%
$249.0
8.7
%
$306.5
10.1
%
$351.1
10.9
%
$412.0
12.1
%
$478.9
13.2
%
($25.3
)
12.1
%
($27.1
)
10.9
%
($67.4
)
22.0
%
($119.4
)
34.0
%
($140.1
)
34.0
%
($162.8
)
34.0
%
$184.7
$221.9
$239.1
$231.7
$271.9
$316.1
$193.0
(32.2
)
(101.7
)
2.2
$168.4
(41.3
)
(109.3
)
6.1
$173.0
(16.4
)
(108.6
)
(7.2
)
$177.6
(16.1
)
(109.8
)
(5.7
)
$182.3
(15.1
)
(111.0
)
(6.2
)
$246.2
$245.9
$279.8
$277.7
$321.9
CONFIDENTIAL
56
Comparable Company Trading AnalysisGlobal Services

($ in millions)
Company
Aviator
Enterprise Services
Black Box
Convergys
CGI Group
Getronics
Unisys
Mean
Median
Global ServicesImplied Enterprise Value
Black Box
Convergys
CGI Group
Getronics
Unisys

Revenue
EBITDA
EBIT

Revenue
EBITDA
EBIT
Stock Price
05/09/05
Equity
Value
Enterprise
Value
$9.08
$4,185.6
$3,518.6
0.70
x
5.6
x
10.4
x
0.65
x
5.1
x
$34.21
$607.6
$637.4
13.04
5.61
1.62
6.88
1,862.9
2,506.0
1,372.2
2,320.6
2,163.4
2,684.5
1,335.0
2,711.2
1.14
x
0.81
0.82
0.39
0.46
0.72
x
0.81
8.3
x
5.6
5.4
6.1
5.6
6.2
x
5.6
9.6
x
9.1
8.1
9.7
27.3
12.8
x
9.6
0.95
x
0.76
0.75
0.36
0.44
0.65
x
0.75
$3,098.5
2,192.2
2,221.5
1,048.3
1,255.1
$3,379.4
2,280.0
2,211.0
2,487.2
2,290.1
$2,102.8
1,994.9
1,769.5
2,140.8
6,008.5
$2,767.3
2,209.1
2,183.4
1,058.8
1,292.4
P/E
CY 2005E
CY 2006E
8.4
x
15.7
x
12.7
x
6.7
x
5.1
4.8
5.1
4.3
5.2
x
5.1
8.0
x
8.2
6.8
6.7
10.0
7.9
x
8.0
14.8
x
13.7
12.5
11.5
NM
13.1
x
13.1
12.5
x
12.1
10.8
9.0
19.7
12.8
x
12.1
$2,884.3
2,218.4
2,081.2
2,224.2
1,845.8
$2,095.5
2,161.6
1,793.4
1,770.4
2,630.5
$2,864.5
2,655.0
2,417.9
2,215.6
NA
$2,891.1
2,798.4
2,496.6
2,086.0
4,556.0
CONFIDENTIAL
56
AviatorComparable Transaction Multiples and Implied Valuation

Global Services
($ in millions)
Acquiror
Target
Transaction Date
Equity Value
4/26/2005
$471.1
Target
Enterprise Value
Revenue
EBITDA
EBIT
Forward P/E
$448.0
1.65
x
11.9
x
13.2
x
22.5
x
NM
Nortel
PEC Solutions
IBM
Corio
1/25/2005
182.0
174.1
2.94
NA
NM
Warburg-Providence
Telcordia
11/18/2004
1,350.0
1,350.0
1.53
7.7
8.9
NA
Cisco
NetSolve
9/9/2004
128.0
89.0
2.21
NA
NM
NM
Avaya
Expanets
11/26/2003
152.0
152.0
0.36
NA
NM
NA
CGI
AMS
3/9/2004
858.0
795.7
0.78
8.9
17.3
31.3
GTCR
Syniverse
2/14/2002
770.0
770.0
2.45
6.3
7.4
NA
ServicesImplied Valuation
Acquiror
Target
Nortel
PEC Solutions
$3,830.6
$2,623.1
$1,577.2
$2,365.8
IBM
Corio
6,817.8
NA
NA
NA
Warburg-Providence
Telcordia
3,548.0
1,697.3
1,063.4
NA
Cisco
NetSolve
5,124.9
NA
NA
NA
Avaya
Expanets
829.4
NA
NA
NA
CGI
AMS
1,815.9
1,950.9
2,067.0
3,291.0
GTCR
Syniverse
5,681.5
1,388.7
884.2
NA

Note: Based on Global Services segment Forward Revenue of $2319.0 million, Forward EBITDA of $220.4 million, Forward EBIT of $119.5 million, and Forward Net Income of $105.1 million.
CONFIDENTIAL
56
Cost of Capital AnalysisServices

Assumptions
Risk-free Rate(1)
4.39 %
7.20
Aviator Marginal Tax Rate
12.0
Comparable Company
Global Services
Black Box
Convergys Corporation
CGI Group
Getronics
Unisys
Consolidated Mean
Aviator
Barra
Beta
Debt/
Equity(3)
Unlevered
Beta(4)
1.24
1.14
1.00
1.99
1.75
1.43
2.44
6.7%
18.1
14.7
15.1
45.3
20.0
4.5
1.17
0.98
0.89
1.76
1.25
1.21
2.35
WACC CalculationBased on Industry Average Unlevered BetaServices

Debt/
Equity(4)
10.0 %
20.0
30.0
40.0
50.0
Debt/
Capitalization
9.1 %
16.7
23.1
28.6
33.3
Levered
Beta(5)
Cost of
Equity(6)
6.00%
7.00%
1.32
1.42
1.53
1.64
1.74
13.9%
14.6
15.4
16.2
16.9
13.1%
13.1
13.1
13.1
13.1
13.2%
13.2
13.3
13.3
13.4

8.00%
13.3%
13.4
13.5
13.6
13.6
9.00%
10.00%
13.3%
13.5
13.7
13.8
13.9
13.4%
13.7
13.9
14.1
14.2

Note: Based on Enterprise Communications segment Forward Revenue of $2319.0 million, Forward EBITDA of $220.4 million, Forward EBIT of $119.5 million, and Forward Net Income of
$105.1 million.
(1) Excludes Cisco/Active Voice, Alcatel/Genesys and Cisco/Geotel.
CONFIDENTIAL
56
Section 315

Nortel Acquires Aviator
WACC = Kd * D/(D+E) + Ke * E/(D+E).
(1) Yield on 20-year Treasury Bond as of May 2, 2005.
(4) Unlevered Beta = Predicted Beta/(1+ (1-tax)*D/E).
(5) Levered Beta = Unlevered Beta * (1+(1-tax)*D/E)).
Section 3-116
Transaction Considerations
Nortel Merges with AviatorStrategic Rationale
Dominant Legacy
PBX Vendor
Globally
Different Channel
and Portfolio
Strategies Create
Opportunities for
Cross Selling
Similar Geographic
Footprint Creates
Potential for Cost
Synergies
Potential to create the largest PBX vendor globally, with combined enterprise revenue of $8.1
billion and well-entrenched customer relationships
Nortel/Aviator will be the #1 vendor in the North American enterprise voice market, with a
combined market share of approximately 47%
Nortel/Aviator will be the #1 vendor in the global contact center market, with market shares of
56%, 54% and 75% in North America, Europe and Asia respectively
Could potentially have the scale and the R&D capabilities to take on Cisco in the enterprise
PBX portion of the overall enterprise market as it transforms from circuit to IP
Aviators channel mix is mostly direct (65%), whereas Nortels enterprise channel strategy is
almost entirely indirect
Nortels enterprise business generates approximately 30% of revenue from sale of data
networking equipment; Aviator currently generates no revenue from sale of data networking
equipment
Aviator could potentially cross-sell its service offerings into Nortels customer base; Nortel
could potentially cross-sell its data offerings into Aviators customer base
Significant opportunities for cost synergies exist through reductions in cost of sales, overlapping
R&D platforms and redundant G&A functions
Geographic proximity of Nortel and Aviator should allow for efficient execution of these
synergies.
Pro Forma Revenue Mix Analysis

Nortel
Nortel + Aviator
Enterprise
24%
Wireline
Infrastructure
16%
Wireline
Infrastructure
25%
Enterprise
50%
Wireless
Infrastructure
51%
Total 2005E Revenues = $10.6 Billion
Wireless
Infrastructure
34%
Total 2005E Revenues = $15.6 Billion
Review of Portfolio OverlapNortel Merges with Aviator
Nortel
Lucent
Siemens
Alcatel
Cisco
Aviator
Juniper
Nortel+
Aviator
Growth Businesses
Carrier IP Routing
Carrier VoIP Gateways and Softswitches
Enterprise Convergence
3G Wireless
Broadband Access
Security, Storage, WLAN
Home Networking/Mobile Phones
Mature Businesses
ATM Switching
2.02.5G Wireless
Optical Networking
Enterprise Data Networking
Declining Businesses
Digital Cross Connect

Circuit Switching
Legacy PBX
Leadership/Strong Position
Source: Wall Street Research and Bear Stearns Investment Banking estimates.
Note: Fiscal year ending December 31.
Weak Position
Review of Key ConsiderationsMerger with Aviator

Insert Portrait Tabloid 6937031 (Doc. # 6966602) Page 48
Shareholder Overlap Analysis

Nortel Shareholders
Primecap Management
Capital Research & Management
MFS Investment Management
Smith Barney Asset Management
Alliance Capital Management
McLean Budden
TD Asset Management
CDP Capital World Markets
BC Investment Management
Canadian Pension Plan Investment Board
BMO Nesbitt Burns
Artisan Partners
RBC Asset Management
Ontario Teachers Pension Plan Board
Equinox Capital Management
Ontario Municipal Employee Retirement System
TAL Global Asset Management
Phillips, Hager & North Investment Management
Connor, Clark & Lunn Investment Management
I. G. Investment Management
HOOPP Investment Management
Deutsche Bank Investment Management
Merrill Lynch Investment Managers
Letko, Brosseau & Associates
Jennison Associates
UBS Global Asset Management
Goldman Sachs Asset Management
Marathon Asset Management
TIAA-CREF Investment Management
T. Rowe Price Associates
AIM Trimark Investments
Morgan Stanley
Natcan Investment Management
C. I. Mutual Funds
Deutsche Bank Securities
Courage Capital Management
Norges Bank Kapitalforvaltning
Goldman Sachs
Aviator Shareholders
Position
118.712
98.550
79.074
78.334
67.884
65.775
62.288
53.573
52.422
51.264
48.026
42.805
37.682
36.825
36.346
33.866
31.418
29.419
24.508
23.038
21.856
18.811
16.524
15.758
15.302
15.174
14.037
13.760
13.554
12.867
12.146
11.685
11.517
11.495
11.425
11.193
9.921
9.736
8.994
8.972
% Ownership
2.8 %
2.3
1.9
1.8
1.6
1.5
1.5
1.3
1.2
1.2
1.1
1.0
0.9
0.9
0.9
0.8
0.7
0.7
0.6
0.5
0.5
0.4
0.4
0.4
0.4
0.4
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.2
0.2
0.2
0.2
Warburg Pincus
Dodge & Cox
Lord, Abbett & Co.
Friess Associates
SSgA Funds Management
Vanguard Group
Wellington Management
AIM Management Group
Calamos Advisors
Artisan Partners
Franklin Advisers
Trusco Capital Management
Victory Capital Management
Northern Trust Global Investments
Bessemer Investment Management
Pioneer Global Asset Management
TIAA-CREF Investment Management
BNP Paribas Asset Management
Fifth Third Asset Management
Dreyfus Investment Advisors
AXA Rosenberg Investment Management
Mellon Bank Asset Management
JPMorgan Investment Management
Northern Capital Management
Perkins, Wolf, McDonnell & Co.
US Bancorp Asset Management
Merrill Lynch Investment Managers, Inc.
American Century Global Investment Management
California Public Employees Retirement System
Deutsche Bank Investment Management
Northwestern Investment Management
PDR Services
Akanthos Capital Management
Citadel Investment Group
Fred Alger Management
Teacher Retirement System of Texas
HSBC Asset Management
Geode Capital Management
Position
47.955
24.812
16.979
16.215
15.083
12.913
11.961
11.883
11.104
10.080
7.283
7.013
6.717
5.952
5.751
4.736
4.645
4.537
3.838
3.617
3.207
2.944
2.720
2.695
2.339
2.153
2.132
2.100
2.056
2.050
1.998
1.971
1.931
1.874
1.872
1.752
1.744
1.699
1.696
1.668
% Ownership
10.0
%
5.2
3.5
3.4
3.1
2.7
2.6
2.5
2.3
2.1
1.5
1.5
1.4
1.2
1.2
1.0
1.0
0.9
0.8
0.8
0.7
0.6
0.6
0.6
0.5
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.3
Section 3-217
Relative Contribution Analysis

($ in millions)
Nortel
$
Aviator
Total
%
Nortel
Aviator
Revenues
FY 2008E
FY 2007E
FY 2006E
$13,305.9
12,672.3
12,061.7
$6,062.8
5,719.5
5,395.8
$19,368.7
18,391.9
17,457.4
68.7%
68.9
69.1
31.3%
31.1
30.9
EBITDA
FY 2008E
FY 2007E
FY 2006E
$1,481.0
1,429.4
1,130.1
$874.2
788.9
686.9
$2,355.2
2,218.3
1,817.0
62.9%
64.4
62.2
37.1%
35.6
37.8
EBIT
FY 2008E
FY 2007E
FY 2006E
$1,075.3
1,023.9
738.8
$591.8
513.8
419.0
$1,667.1
1,537.6
1,157.8
64.5%
66.6
63.8
35.5%
33.4
36.2
Net Income
FY 2008E
FY 2007E
FY 2006E
$933.5
867.2
571.6
$406.7
396.2
367.3
$1,340.1
1,263.4
938.9
69.7%
68.6
60.9
30.3%
31.4
39.1
$3,386.4
3,870.0
630.0
3,766.7
$1,040.1
20.5
0.0
1,535.3
$4,426.5
3,890.5
630.0
5,302.0
76.5%
99.5
100.0
71.0
23.5%
0.5
0.0
29.0
Equity Value(2)
Enterprise Value
$11,315.9
12,361.9
$4,663.0
3,996.7
$15,978.9
16,358.6
70.8%
75.6
29.2%
24.4
Equity Value at $10.00 per Share

$11,315.9
11,315.9
11,315.9
$4,896.9
5,892.4
6,902.4
$16,212.9
17,208.4
18,218.3
69.8%
65.8
62.1
30.2%
34.2
37.9
Cash(1)
Total Debt(1)
Minority Interest(1)
Shareholders Equity(1)
Pro Forma Merger Consequences SummaryNortel Acquires Aviator

($ in millions, except for per share data)
100% Stock
$10.00 per Share

25% Cash/
75% Stock
50% Stock/
50% Cash
Implied Exchange Ratio

Premium to Market
Earnings (Dilution)/Accretion Per Share ($)
FY 2006E
FY 2007E
FY 2008E
Earnings (Dilution)/Accretion Per Share (%)
FY 2006E
3.779 x
4.9 %
2.834 x
4.9 %
1.889 x
4.9 %
$0.01
(0.01 )
(0.01 )
$0.02
0.01
0.01
$0.02
0.01
0.01
FY 2007E
FY 2008E
Additional Pre-Tax Earnings for 0% Dilution
FY 2006E
FY 2007E
FY 2008E
Closing Balance Sheet
Cash
Incremental Identifiable Intangible Assets
Total Debt
Equity
FFO/Debt
FY 2006E
FY 2007E
FY 2008E
Total Debt/Capitalization
Closing
FY 2006E
FY 2007E
FY 2008E
Total Debt/EBITDA
Closing
FY 2006E
FY 2007E
FY 2008E
Pro Forma OwnershipAviator
(2.7 )
(3.7 )
3.4
2.4
NA
38.3
60.2
$4,306.0
692.3
3,870.0
8,663.6
7.7 %
13.6 %
11.9 %
100% Stock
4.534 x
25.9 %
($0.00 )
(0.02 )
(0.02 )
$12.00 per Share

25% Cash/
75% Stock
50% Stock/
50% Cash
3.401 x
25.9 %
2.267 x
25.9 %
$0.01
(0.01 )
(0.01 )
$0.00
(0.00 )
(0.00 )
4.3 %
0.5 %
100% Stock
5.290 x
46.9 %
$14.00 per Share

25% Cash/
75% Stock
3.968 x
46.9 %
50% Stock/
50% Cash
2.645 x
46.9 %
($0.01 )
(0.03 )
(0.04 )
($0.01 )
(0.02 )
(0.03 )
($0.01 )
(0.02 )
(0.02 )
(5.5
%)
(11.6 )
(11.9 )
(10.4
%)
(8.0 )
(7.7 )
7.0
6.5
(0.6
%)
(9.6 )
(10.5 )
(3.6 )
(4.3 )
(0.4 )
(0.6 )
(8.1
%)
(15.9 )
(16.6 )
NA
NA
NA
NA
NA
NA
$5.4
145.9
178.8
NA
49.7
66.9
NA
5.6
8.0
$81.8
255.0
299.1
$50.2
168.5
194.6
$85.5
104.6
113.1
$3,081.7
692.3
3,870.0
7,439.4
$3,001.2
692.3
5,030.0
6,215.1
$4,306.0
891.4
3,870.0
9,659.1
$3,000.0
891.4
4,038.7
8,186.0
$3,011.6
891.4
5,545.0
6,712.9
$4,306.0
1,093.4
3,870.0
10,669.1
$3,021.4
1,093.4
4,320.0
8,943.5
$3,023.3
1,093.4
6,070.0
7,217.9
41.5 %
50.5
52.7
41.0 %
50.0
52.2
33.6 %
41.9
43.9
41.6 %
50.6
52.8
40.1 %
49.2
51.4
31.2 %
39.4
41.3
41.6 %
50.6
52.9
35.9 %
44.1
46.1
28.4 %
36.1
37.9
29.4 %
27.6
25.4
23.4
32.4 %
30.2
27.7
25.4
42.4 %
37.0
33.9
31.0
27.3 %
25.8
23.9
22.1
31.4 %
28.9
26.6
24.5
43.0 %
36.9
34.0
31.4
25.5 %
24.2
22.5
21.0
31.1 %
29.4
27.3
25.4
43.6 %
37.3
34.7
32.2
2.9 x
2.1
1.7
1.6
30.2 %
2.9 x
2.1
1.7
1.6
24.5 %
3.8 x
2.5
2.0
1.9
17.8 %
2.9 x
2.1
1.7
1.6
34.2 %
3.1 x
2.2
1.8
1.7
28.1 %
4.2 x
2.6
2.1
2.0
20.7 %
2.9 x
2.1
1.7
1.6
37.9 %
3.3 x
2.4
1.9
1.8
31.4 %
4.6 x
2.8
2.3
2.2
23.4 %
Note: Fiscal year ending December 31.
(1) As of December 31, 2005.
(2) As of May 27, 2005.
Nortel Acquires AviatorSynergy Sensitivity Analysis

Assuming 50% Stock/50% Cash

Pretax Synergies
$250
$300
$350
$400
$450
$500
$0.06
0.06
0.06
$0.07
0.07
0.06
$0.08
0.07
0.07
$0.09
0.08
0.08
$0.09
0.09
0.09
$0.10
0.10
0.10
44.5
%
28.0
10.0
51.1
%
32.2
13.5
57.6
%
36.4
17.0
64.1
%
40.6
20.6
70.7
%
44.8
24.1
77.2
%
49.0
27.7
$0.04
0.04
0.04
$0.05
0.05
0.05
$0.06
0.06
0.05
$0.07
0.06
0.06
$0.08
0.07
0.07
$0.09
0.08
0.08
32.1
%
19.8
17.7
38.4
%
23.9
21.4
44.7
%
27.9
25.1
51.0
%
32.0
28.7
57.3
%
36.0
32.4
63.6
%
40.1
36.1
$0.03
0.02
0.02
$0.03
0.03
0.03
$0.04
0.04
0.04
$0.05
0.05
0.04
$0.06
0.06
0.05
$0.07
0.06
0.06
$10/share
FY 2006E
FY 2007E
FY 2008E
FY 2006E
FY 2007E
FY 2008E
$12/share
FY 2006E
FY 2007E
FY 2008E
FY 2006E
FY 2007E
FY 2008E
$14/share
FY 2006E
FY 2007E
FY 2008E
Assumes December
31, 2005 closingPer
date.Share (%)
Earnings
(Dilution)/Accretion
Assumes
Nortel stock price of $2.65 and Aviator stock price of $9.53 (as
of May 27, 2005). 26.1
FY 2006E
20.0
32.2
38.3
44.4
50.5
Assumes 20% of Excess of Purchase Price over Book Value is allocated to Incremental Identifiable Intangible Assets and is amortized (straight-line) over 10 years for book purposes.
%
%
%
%
%
%
Assumes purchase funded with balance sheet cash subject to a $3.0 billion minimum cash balance; excess, if any, funded with a combination of bank debt at L+350 and senior notes at 8.19% for 50/50
FY
11.5
15.4
19.4
23.3
27.2
31.1
and 2007E
25/75 scenarios.
FY 2008E
10.0
13.5
17.0
20.6
24.1
27.7
Nortel Acquires AviatorSynergy Sensitivity Analysis

Assuming 100% Stock

Pretax Synergies
$250
$300
$350
$400
$450
$500
$0.05
0.03
0.03
$0.05
0.04
0.03
$0.06
0.05
0.04
$0.07
0.05
0.05
$0.08
0.06
0.06
$0.08
0.07
0.06
35.5
%
15.1
(2.2
)
41.0
%
18.7
0.6
46.6
%
22.3
3.5
52.1
%
25.8
6.4
57.7
%
29.4
9.2
63.2
%
33.0
12.1
$0.03
0.01
0.01
$0.04
0.02
0.02
$0.05
0.03
0.02
$0.06
0.03
0.03
$0.06
0.04
0.04
$0.07
0.05
0.04
25.6
%
7.2
4.7
30.8
%
10.5
7.7
36.0
%
13.9
10.8
41.3
%
17.2
13.8
46.5
%
20.6
16.8
51.7
%
24.0
19.9
$0.02
(0.00
)
(0.00
)
$0.03
0.01
$0.04
0.01
$0.04
0.02
$0.05
0.03
$0.06
0.03
0.00
0.01
0.01
0.02
0.03
$10/share
FY 2006E
FY 2007E
FY 2008E
FY 2006E
FY 2007E
FY 2008E
$12/share
FY 2006E
FY 2007E
FY 2008E
FY 2006E
FY 2007E
FY 2008E
$14/share
FY 2006E
FY 2007E
FY 2008E
FY 2006E
FY 2007E
FY 2008E
16.6
%
(0.0
)
(2.2
)
21.6
%
3.1
26.5
%
6.3
31.4
%
9.5
36.4
%
12.7
41.3
%
15.8
0.6
3.5
6.4
9.2
12.1

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Presentation to

Historical Stock Price Performance

Wall Street Coverage

Historical and Projected Financial Review

Officer and Director Profile

Aviator Corporate Profile

Aviator Top-Down Valuation

Aviator Sum-of-the-Parts Valuation

Enterprise Communications Group Valuation

Enterprise Services Valuation

Pro Forma Merger ConsequencesNortel Acquires Aviator

Pro Forma Merger Consequences

Global Communications Solutions (51% Revenue)

Global Services (49% Revenue)

Large Communications Systems

Small Communications Systems

Implementation and Integration Services

Converged Voice Applications

Rental and Managed Services

Draft of 8202529, v1, printed 10/14/2008 10/14/2008

AviatorGlobal Communications Solutions

Global Communications Solutions

Large Communications Systems

Small Communications Systems

Converged Voice Applications

Unified messaging products

Media servers for voice

Other applications that facilitate

Contact Center Solutions

Draft of 8202529, v1, printed 10/14/2008 10/14/2008

Implementation and Integration Services

Monitors and optimizes customers

Helps customers leverage and optimize

Keeps enterprise communications

Helps enterprises assess, design and

Draft of 8202529, v1, printed 10/14/2008 10/14/2008

Rental and Managed Services

AviatorMarket Share Analysis

Draft of 8202529, v1, printed 10/14/2008 10/14/2008

Source: McKinsey Report.

Draft of 8202529, v1, printed 10/14/2008 10/14/2008

Aviators Challenges in Enterprise Voice

Source: BCR, January 2005.

Draft of 8202529, v1, printed 10/14/2008 10/14/2008

Protecting its current installed base of voice customers

Well funded competitors like Cisco with significant data credibility

Changing financial metrics as customers migrate to IP

Draft of 8202529, v1, printed 10/14/2008 10/14/2008

AviatorSummary of Recent Acquisitions

VPNet Technologies, Inc.

A provider of electronic customer relationship management (eCRM) solutions.

Draft of 8202529, v1, printed 10/14/2008 10/14/2008

Historical Stock Price

Aviator Stock Price Performance

Announced a voluntary contribution of approx. $111M of its

Announced it had completed cash repurchases of $131.6 million

Announced a redemption for cash all of its outstanding Liquid

Announced Q3 04 EPS of 16 cents versus consensus estimates of

Announced Q1 05 EPS of 17 cents versus consensus estimates

Announced the successful completion of a new $400 million

Announced Q2 05 EPS of 9 cents versus consensus estimates

Announced Q4 04 EPS of 19 cents versus consensus estimates of

Provided guidance for fiscal year 2005 including an operating