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ShoreTel Builds on Key Differentiators of its Distributed Architecture with New Release of ShoreTel 7

New Software and Hardware Further Improve Administrative Capabilities, Ease-of-Use, Low Total Cost of Ownership and High Customer Satisfaction
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SUNNYVALE, CA, April 23, 2007 - ShoreTel, Inc., a leading provider of IP telephony solutions, today announced the latest version of its award-winning IP telephony offering. Now in its seventh major software release, ShoreTel 7 is based on a unique combination of a distributed software architecture and a switch-based hardware platform, a distinctive approach that has proven more reliable and cost effective than alternative server-centric solutions. ShoreTel 7 also provides a single point of management, complete feature transparency between enterprise locations and scalability for enterprises and SMBs alike.

ShoreTel 7 includes software enhancements that simplify system administration, productivity-enhancing features on the desktop, and a higher-density switch chassis presented in a smaller physical footprint.

"We wanted a bulletproof system with features that expedited workflows and gave our employees the ability to personalize their desktops for a more useable phone system -- we got that and more with ShoreTel. ShoreTel 7 is fantastic for efficiency," said Jason Dasher, IT manager at North Fulton Family Medicine. "The new customizable tool bar with the drop-in buttons has been a big hit. Our employees can now interact with each other quickly and determine a colleague's availability with a quick glance at the desktop."

One of the key software enhancements in ShoreTel 7 is Escalation Notification, which allows the customer to establish a "must respond" process for incoming calls. With this feature, the system administrator uses business rules to automate call routing to any combination of phones, pagers, and email devices. With Escalation Notification, the administrator controls the time duration between escalations, helping to meet service levels and ensuring that each call gets the attention it requires. ShoreTel 7 also includes ShoreWare® Unified Messaging software, which provides integrated messaging for any PC desktop, as well as unified messaging with Microsoft® Outlook®.

On the hardware front, ShoreTel 7 includes additional hardware switches that deliver increased capacity in a smaller footprint. The smaller physical footprint further improves ShoreTel's total cost of ownership. The new hardware is interoperable with existing ShoreGear® switches, allowing existing and new customers to deploy any combination of the expanded switch product line across many locations.

End-user productivity features of ShoreTel 7 include the ability for the administrator to customize the desktop calling interface with specific programmable buttons appropriate to the role of the employee (e.g. secretary, call center agent, sales executive, etc.). Programmable buttons enable standard telephony capabilities at the click of a mouse, as well as provide additional value-added desktop features with 1-button access not available through programmable buttons on the phone (e.g., launching other applications or a web browser, viewing call history and more). Over 50 programmable functions are available with the programmable buttons feature.

Call center agent productivity is boosted in ShoreTel 7 with integration that merges the agent client and ShoreTel's Personal Call Manager (PCM) desktop client. This feature gives agents the choice of using their agent interface or the intuitive PCM, which now integrates some commonly used contact center actions. For example, agents can log in and out, chat, silent monitor or barge-in via PCM.

"ShoreTel provides end users with a consistent, full suite of features across the enterprise, regardless of location," said Steve Timmerman, vice president of marketing at ShoreTel. "Unlike server-centric IP telephony products that do not provide integrated system management, ShoreTel's distributed architecture delivers the scalability, reliability and manageability that enterprise IT departments require."

Pricing and Availability

ShoreTel 7 is available now. The software upgrade to ShoreTel 7 is free of charge to customers with maintenance contracts. Pricing for the new ShoreTel switches is as follows: ShoreGear 50: (US Dollars) $2,695; ShoreGear 90: (US Dollars) $4,195; ShoreGear 220T1: (US Dollars) $7,995; and ShoreGear 220E1: (US Dollars) $7,495.

About ShoreTel, Inc.

ShoreTel is a leading provider of IP telephony solutions. ShoreTel voice systems provide enterprise customers with a number of key benefits, including ease of use, manageability and lower total cost of ownership than alternative solutions. ShoreTel's distributed software architecture and switched-based hardware platform extend enterprise-class voice services to every office and outpost, keeping employees fully connected wherever they go. Founded in 1996, ShoreTel has achieved broad industry recognition for its technology and high customer satisfaction. For the last four years, IT executives surveyed by Nemertes Research, an independent research firm, have rated ShoreTel highest in customer satisfaction among leading enterprise telecommunications systems providers. A select, worldwide group of channel partners provide service and support. ShoreTel is headquartered in Sunnyvale, California and has regional offices in the United Kingdom, Sydney, Australia and Munich, Germany. For more information, visit http://www.shoretel.com/ or call 1-877-80SHORE.

"Safe Harbor" Statement under U.S. Private Securities Litigation Reform Act of 1995.

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement regarding future events or the future financial performance of ShoreTel, Inc. that involves risks or uncertainties. In evaluating these statements, readers should specifically consider various factors that could cause actual events or results to differ materially from those indicated, including without limitation: slippage in product introduction, development cycles, etc., the ShoreTel product may not be available in a timely manner and other important factors described in ShoreTel reports and documents filed from time to time with the Securities and Exchange Commission. The information in this release is current as of the date of this release, but may not remain accurate as of any future date. ShoreTel does not undertake any duty to update the information provided in this release, except as otherwise required by law.