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ShoreTel Files Counterclaims Against Mitel Networks

Alleges Mitel's Infringement of ShoreTel Patent and Violations of Canadian Law
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SUNNYVALE, CA, July 31, 2007 - ShoreTel, Inc., (NASDAQ: SHOR), a leading provider of enterprise IP telephony solutions, today announced that it has filed counterclaims against Mitel Networks Corp. in response to Mitel's patent infringement lawsuit against ShoreTel.

In addition to denying all of Mitel's claims of patent infringement, ShoreTel alleges that Mitel's IP phone systems, including the Mitel 3300 IP Communications Platform, infringes ShoreTel's U.S. Patent No. 7,167,486 B2 entitled "Voice Traffic Through a Firewall." ShoreTel also filed claims for approximately $10 million in damages and an injunction against Mitel in Ontario Superior Court for making false or misleading statements about ShoreTel's alleged infringement, which were made on the eve of ShoreTel's initial public offering.

"We are confident in our position, and believe the timing of Mitel's filing was intended to interfere with our later successful IPO," said John W. Combs, Chief Executive Officer of ShoreTel. "ShoreTel will defend its position and pursue its claims against Mitel vigorously."

Legal Notice Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the federal securities laws, including, without limitation, statements regarding the litigation with Mitel Networks Corp. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. The risks and uncertainties include the inherently unpredictable nature of litigation, the costs and management distraction related to litigation, and other risk factors set forth in ShoreTel's Registration Statement on Form S-1 and its free writing prospectus dated June 29, 2007. ShoreTel assumes no obligation to update the forward-looking statements included in this release.

About ShoreTel, Inc.

ShoreTel is a leading provider of enterprise IP telephony solutions. ShoreTel voice systems provide 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.