350066--3/16/2006--INTER_TEL_INC

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{product, market, service}
{cost, contract, operation}
{provision, law, control}
Our market is subject to rapid technological change and to compete successfully, we must continually introduce new and enhanced products and services that achieve broad market acceptance. Our future success largely depends on increased commercial acceptance of our Inter-Tel 5000 and 7000 Network Communications Solutions, Axxess system, the Lake OfficeLink product (branded EncoreCX in North America), the Lake Sigma product (branded Sprint Connection Central in North America), speech recognition, Interactive Voice Response, presence management, collaboration, messaging products, Session Initiation Protocol (SIP) applications, and related computer-telephony products. We have many competitors and expect new competitors to enter our market, which could increase price competition and spending on research and development and which may impair our ability to compete successfully. Our future success largely depends on increased commercial acceptance of our Inter-Tel 5000 and 7000 Network Communications Solutions, Axxess system, the Lake OfficeLink product (branded EncoreCX in North America), the Lake Sigma product (branded Sprint Connection Central in North America), speech recognition, Interactive Voice Response, presence management, collaboration, messaging products, Session Initiation Protocol (SIP) applications, and related computer-telephony products. We have many competitors and expect new competitors to enter our market, which could increase price competition and spending on research and development and which may impair our ability to compete successfully.

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