Inter-Tel Announces Linktivity® WebDemo® 4.0

Newest WebDemo Web Conferencing Server Software Provides Performance Driven Features

TUCSON, AZ - (December 16, 2004) - Inter-Tel, Incorporated (Nasdaq: INTL), announced today the release of Inter-Tel Linktivity® WebDemo® 4.0. Linktivity, a division of a wholly owned subsidiary of Inter-Tel, offers real-time communications software that provides server-based collaboration and control products. WebDemo 4.0 is the latest version of this award-winning, Web-based, real-time conferencing and collaboration software application. Available in three versions, WebDemo Express, WebDemo Professional and WebDemo Enterprise, the product is designed to offer a collaboration solution for a broad range of businesses and enterprises at an affordable price.

New Features of WebDemo 4.0 include:

• SSL Support – Provides the ability to run WebDemo on a secure SSL connection.
• Dynamic CAST 128-Bit Encryption on the Fly – As the meeting host, you can enable/disable 128-bit encryption from a "lock" button on the control panel. Encryption is automatically enabled in password protected meetings.
• Web Meeting Icon Launchers – Enables users to instantly launch a meeting using the new and simplified WebDemo Launch Icon. The icon can reside on a desktop or on the Microsoft® Office®, Microsoft® Outlook® or Microsoft® Internet Explorer tool bars.
• Windows/LDAP/Active Directory/Radius Authentication – Offers the ability to use these industry-standard network directory services to authenticate users when they log into the Linktivity Server.
• Invite Feature – Conference hosts can invite new participates to join an active meeting via an e-mail invite.
• New Online Help – Offers a new and improved online help function designed to provide quicker instructions and improved ease-of-use.
• Expanded Multi-lingual Capabilities – Enables users to choose their desired language for their user interface including: English, French, Italian, German or Spanish.
• Redesigned Install – In a matter of minutes, users can install the software which resides behind their firewall; this feature offers protection and confidentiality of information with encryption for online meeting needs.
• New Report Features – WebDemo 4.0 provides new search and query capabilities to better monitor and manage Web conferencing use and provides support for the CSV print format.

“The WebDemo 4.0 software is designed to enhance the security, ease of installation, and ease of use of this award-winning web collaboration product,” stated Scott S. Moule, Inter-Tel’s Linktivity division general manager. “The launch icons, multi-lingual support, and new HTML collaboration client are designed to offer existing and new customers improved connectivity rates and easy-to-initiate virtual meetings, e-training and Internet collaboration.”

“The WebDemo 4.0 product provides our customers with an enhanced software tool to facilitate virtual meetings, collaboration sessions with remote employees, and sales presentations with remote customers. The application is designed to enhance our customers’ business productivity and help their sales personnel to more quickly close sales opportunities with live presentations and product demonstrations,” stated Jeffrey T. Ford, Inter-Tel’s chief technology officer.

WebDemo 4.0 is available immediately. Unlike hosted services, WebDemo users may download the software for use on their site on an annual fee basis, and therefore, are free of unpredictable per-minute, per-participant, per-seat, monthly overage costs typically associated with third-party Web hosting conferencing services. In addition, users have the freedom to use the software for a variety of needs, such as training, sales presentations, etc.

Included in the license cost are software updates and upgrades for the first year of ownership, API Toolkit for integration with your existing software and business processes, and first year support during standard support hours, 7:30 a.m. to 4:00 p.m. Mountain Standard Time. To purchase or to download this software, please visit www.linktivity.com

Linktivity is now a Division of Inter-Tel. Inter-Tel, Incorporated announced on October 8 that the purchase by an operating subsidiary of selected assets and assumption of certain liabilities of Converging Technologies, Inc. ("CTI") and Linktivity, Inc. The acquired assets primarily include Web-based conferencing solutions, notably Linktivity® software. These solutions are designed to provide real-time communications and remote control software to enable instantaneous, browser-to-browser Web conferencing and help desk support solutions. The acquisition of these selected assets is expected to enable Inter-Tel to continue expansion of its presence management and collaboration solutions portfolio, which is being designed to provide enterprise customers with advanced and easy to use conferencing and collaboration solutions to better address their communication needs.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, among others, dependence on new product or software development; availability of inventory from suppliers; the presence of software "bugs"; market acceptance of the product and related software; and intended uses identified above. For a further list and description of such risks and uncertainties, which could cause the actual results; performance; or achievements of the Company to be materially different from any future results; performance; or achievements, please see the Company's previously filed SEC reports, including the company's Form 10-K,

dated March 15, 2004 and most recent Form 10-Q dated November 5, 2004. Inter-Tel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All products and services mentioned are the trademarks, service marks, registered marks or registered service marks of their respective owners.

About Inter-Tel, Incorporated
Inter-Tel (Nasdaq: INTL - news) offers value-driven communications products; applications utilizing networks and server-based communications software; and a wide range of managed services that include voice and data network design and traffic provisioning, custom application development, and financial solutions packages. An industry-leading provider focused on the communication needs of business enterprises, Inter-Tel employs over 1,900 communications professionals, and services business customers through a network of 59 company-owned, direct sales offices and over 350 authorized providers in the United States and United Kingdom. More information is available at www.inter-tel.com.

About Linktivity
Linktivity, a division of a wholly owned subsidiary of Inter-Tel, and a provider of real-time communications software, provides server-based communications and control products that enable person-to-person interactions through a browser window. Linktivity products include WebDemo, a Web-based, real-time conferencing-and-collaboration software tool, and WebInteractive, a real-time software tool that gives support and sales professionals an efficient way to manage and resolve online requests for service and support. The Linktivity technology and other select assets were acquired by Inter-Tel on October 8, 2004 and join Inter-Tel’s portfolio of business communication software and systems. For more information, visit www.linktivity.com.