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ShoreTel set to increase sales momentum with key appointments

Former Zultys EMEA sales team joins VOIP specialist to drive ambitious expansion plan
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SUNNYVALE, CA, August 21, 2006 - ShoreTel, Inc., the fastest growing IP PBX vendor worldwide and the leader in customer satisfaction, today announced the appointment of the three key executives of Zultys' former European sales team as part of ShoreTel's rapid expansion in EMEA.

Justine Cross, previously head of Zultys' EMEA business development, becomes director business development EMEA at ShoreTel, while her colleague Jackie Iddon becomes area sales manager and Tom Hassan, sales engineer.

Zultys is a respected vendor of communications equipment for businesses and enterprises. However, Zultys was forced to make widespread redundancies in July 2006.

Geoff Gudgion, ShoreTel's Managing Director, EMEA states: "The IP Telephony market is experiencing significant growth at around 25 per cent per annum. ShoreTel is growing at triple the market rate and is profitable, so it is sad & surprising to see an emerging player like Zultys in difficulties. The big players need more good challengers, not fewer.

He continued: "I was hugely impressed with Justine, Jackie and Tom and by appointing them I am bringing in some of the skills, personalities and experience that helped Zultys to build such a good reputation in Europe. I am confident that their technical expertise and international know-how will help ShoreTel accelerate its growth into EMEA. ShoreTel will soon be entering one new country per month, and this team's skills and energy will be a tremendous help."

ShoreTel beat several PBX players that had expressed interest in recruiting the team, and it was ShoreTel's commitment to the long-term interests of the team, and the company's technical excellence and great customer satisfaction record, that won them over.

On the appointments, Justine says: "It was a big decision to make, but from the outset it was clear that ShoreTel was thinking long term and was not just after our immediate sales pipeline. I was really impressed with Geoff's commitment to integrating us into a long-term strategy and it is great to be part of the ShoreTel team.

"When Zultys downsized, many of our partners were left with a pipeline of orders but no product to fulfill them with. Our long-standing relationships meant that we wanted to give them an alternative from an established player, yet with the same innovation and quality of service that they would expect from Zultys. ShoreTel ticked all of these boxes. Its success in the US is testament to the quality of ShoreTel's product and excellent service delivery."

The appointments were effective as of August 21, and the combined team are now scheduling briefing meetings with former Zultys partners and distributors.

Asked about the impact on ShoreTel's channel strategy, Gudgion commented: "ShoreTel's 100% indirect policy is entirely compatible with the 2-tier Value-Added Distribution/Reseller model formerly employed by Zultys. ShoreTel will continue to under-write customer satisfaction by allowing sales only via accredited partners, and limiting the number of those partners so that margins and competitive differentiation are maintained."

In addition to individual calls and meetings, the expanded ShoreTel team will be hosting an open day both for its existing and prospective reseller partners, and for Zultys' partners and distributors. The event will take place on September 5.

About ShoreTel, Inc.

ShoreTel is the fastest growing IP PBX company worldwide and the leader in customer satisfaction. The company has shipped its groundbreaking solutions since 1998 and continues to outpace the rapidly expanding VoIP market with technological advances and sales that are doubling year over year. ShoreTel voice systems are designed to make businesses smarter, setting new standards for usability and manageability while reducing telecommunications costs. A uniquely distributed architecture extends enterprise-class voice services to every office and outpost, keeping employees fully connected wherever they go. A select, worldwide group of channel partners provide top-notch service and support. For more information, visit http://www.shoretel.com/ or call 1-877-80SHORE