943894--3/28/2008--EZENIA

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Company Background and Evolution True Collaboration versus Videoconferencing We may be unable to sustain profitability A significant portion of our revenue is attributable to a small number of major customers- none of whom is obligated to continue to use our products and services. Loss of access to certain third-party technology utilized in our products could materially harm our business. Our success depends upon market acceptance of Internet-based collaboration products, in general, and our IWS product, in particular. If we are unable to adapt to the rapid pace of change in our market, our business could be adversely affected. Our results of operations would suffer if we are unable to effectively compete in the market for multimedia collaboration products. If we release products containing defects or experience delays in releasing new products, our competitive position could be adversely effected. The loss of our senior executives and key personnel or our failure to recruit talented directors, officers and personnel could harm our business. The trading price of our common stock may continue to be volatile, which may adversely affect our business, and investors in our common stock may experience substantial losses. Our common stock is traded on the OTC Bulletin Board, making it a more illiquid investment than if it were traded on a national securities exchange.

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943894--3/28/2008--EZENIA_INC