IP Unity^® Enters into Agreement to Acquire Glenayre Messaging Creating a Top-Tier Provider of Rich Media Messaging and IP Multimedia Solutions to Wireless and Wireline Carriers

MILPITAS, Calif. & ATLANTA, Ga.--(BUSINESS WIRE)--IP Unity, the leader in carrier-grade media servers, application servers and real-time multimedia applications, and Glenayre Messaging, a division of Glenayre Technologies, Inc. (Nasdaq:GEMS) and a global leader in providing next-generation messaging solutions, announced today that the parties have entered into a definitive asset purchase agreement for the consolidation of the two entities. This purchase led by IP Unity investors, is subject to certain customary closing conditions and is expected to close within 30 days. The joining of these two companies will create one of the market’s largest independent suppliers of carrier-class, fully-featured, rich media messaging systems and advanced IP multimedia solutions to both incumbent and next generation wireline and wireless carriers.

The combined company will serve a diverse global customer base of over 2000 deployments for 300 wireline telco, cable, wireless and FMC service providers, large enterprises and public agencies, delivering a strong portfolio of rich media services from a single, IMS enabled carrier grade platform. The merged unified communications framework brings together messaging services and rich media distribution to users across disparate networks and devices. The company will offer an unrivaled portfolio of applications including voicemail, unified messaging, conferencing, SMS, MMS, text to speech, speech recognition, IVR voice portal, color ringback tones, prepaid billing, video portal, video conferencing, videomail and video gaming all built using open standards based technologies such as VoiceXML. The company will continue to invest in its powerful solutions partners and other third-party integrated applications.

“IP Unity has built a market-leading position in wireline, cable and fixed-mobile convergence deployments, while Glenayre has successfully penetrated the emerging wireless markets,” stated IP Unity CEO and Chairman Arun Sobti. “The industry is at the stage when media rich applications are going to drive revenue and customer loyalty for our customers. With the core infrastructure poised for convergence, the combined company will have the optimal solutions for our combined customer base. We will have all the compelling competencies including scale, experience, partners, channels and innovation to support the largest and most demanding deployments worldwide.”

The two companies currently have no customers in common and market their products in largely different geographies and networks. “Our products are well aligned. Together we’ll deliver unparalleled value for any carrier investing in converged wireless/wireline services,” added Bruce Bales, President of the Glenayre Messaging Division. “Convergence and IMS are about delivering uniform services regardless of networks and devices. The new company will deliver advanced services to our customers’ legacy PSTN, next generation and 2G/3G wireless networks.”

The new entity, to be known as IP Unity Glenayre, will have major locations in Atlanta Georgia, Quincy Illinois, Milpitas California, Singapore and Bangalore, India. The company will continue to have multiple sales offices and support centers around the world.

About IP Unity

IP Unity is the leader in delivering carrier–grade media servers, application servers and real-time multimedia applications over IP, TDM and enterprise networks. The company’s open and modular Mereon® solutions let service providers, large enterprises and public institutions quickly deploy services ranging from simple personal communications to complex rich media information and enterprise services. IP Unity solutions feature carrier-class reliability and scalability, intelligent resource management and ease of customization, resulting in optimal total cost of ownership. IP Unity’s comprehensive multiservice solutions are deployed across traditional and all-IP broadband, fixed, mobile and FMC networks around the world. For more information, go to www.ip-unity.com or call 408-582-1100.

About Glenayre Messaging

Glenayre Messaging, a division of Glenayre Technologies, Inc. (NASDAQ: GEMS), is a global provider of next-generation messaging solutions and enhanced services for mobile and fixed carriers and MSO/cable companies. Glenayre systems are designed on open platforms with a standards-based architecture that supports IP and traditional telephony networks. Operators around the world have deployed Glenayre messaging solutions; including voice mail, video mail, multimedia messaging (MMS), and short message service (SMS). Glenayre Messaging, headquartered in Atlanta, USA, has been providing carrier- grade communications solutions for the global market for over 40 years. For more information, visit www.glenayremessaging.com.

Safe Harbor Statement

This news release contains statements that may be forward-looking within the meaning of applicable securities laws. The statements may include projections regarding future revenues and earnings results, and are based upon the companies’ current forecasts, expectations and assumptions, which are subject to a number of risks and uncertainties that could cause the actual outcomes and results to differ materially. Some of these results and uncertainties are discussed in Glenayre’s most recently filed Annual Report on Form 10-K and most recently filed Quarterly Report on Form 10-Q. These factors include, but are not limited to potential intellectual property infringement claims; internal control deficiencies, litigation; potential acquisitions and strategic investments; environmental laws and regulations; ability to attract and retain key personnel; volatility of stock price; competition; variability of quarterly results and dependence on key customers; international business risks; sensitivity to economic trends and consumer preferences; increased costs or shortages of raw materials or energy; advances in technology and changes in customer demands; development of digital distribution alternatives including copying and distribution of music and video files; continuation and expansion of third-party agreements; proprietary technology; potential changes in government regulation; potential market changes resulting from rapid technological advances; restructuring activities; the failure of any condition to the closing of the sale of Messaging; variability in production levels; and compliance with Senior Secured Credit Facility covenants. The companies assume no obligation to update any forward- looking statements and does not intend to do so.

Mereon, IP Unity and the IP Unity logo are registered trademarks of IP Unity.

Glenayre, Versera, Versera ICE and the Glenayre logo are trademarks of Glenayre Electronics, Inc.