Linktivity's Web Conferencing Wins Product of the Year Award

Web Conferencing/Collaboration Software is Singled Out for Its Technological Excellence and Vision

Tucson, AZ Linktivity, a Division of Inter-Tel , announced today that its real-time premise-based Web conferencing software, WebDemo™ 4.0, has received a 2004 Product of the Year award by the Communications Solutions magazine. Designed to recognize excellence in terms of both technological advancements and application refinements, the award is given to technology companies that have made notable efforts to forge ahead in addressing customer expectations for improved user experience and return on investment.

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.

“We are committed to making our Web conferencing product line as reliable, simple and seamless as possible and will continue to refine our products with feature enhancements to achieve this end goal. WebDemo users will be amazed with its newfound developments,” stated Scott S. Moule, Inter-Tel’s Linktivity division general manager. “The shortcut launch icons, new multi-lingual support, and added CAST 128-bit encryption and SSL support features are designed to offer existing and new customers improved online meetings, greater security training and Internet collaboration.”

WebDemo 4.0 is available immediately. Unlike hosted services, WebDemo users own the software; therefore they 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 version 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. To purchase or to download this software, please visit www.linktivity.com.

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.