News and Events

eOn Communications Reports Fourth Quarter and Year End Financial Results

SAN JOSE, CA (October 29, 2008) – eOn Communications Corporation™ (NASDAQ: EONC), a leading provider of telecommunications solutions, today reported fourth quarter and fiscal year 2008 results.

Net loss for the fiscal year ended July 31, 2008 was $3,452,000 or $1.27 per common share, compared to net loss of $1,330,000 or $0.49 per common share for the fiscal year ended July 31, 2007. Loss from continuing operations was $2,861,000 or $1.05 per common share compared to loss from continuing operations of $1,009,000 or $0.37 per common share in the fiscal year ended July 31, 2007. The loss for this year included $408,000 from the closure of India operations and associated severance costs. Net losses from discontinued operations related to the IP hosting business were $591,000 and $321,000 for the fiscal years ended July 31, 2008 and July 31, 2007, respectively. Revenues from continuing operations were $6,994,000 (including related party revenue of $348,000), a decrease of 34% compared with $10,625,000 (including related party revenue of $586,000) for the previous fiscal year.

Net loss for the quarter ended July 31, 2008 was $338,000 or $0.12 per common share, compared to net loss of $375,000 or $0.14 per common share in the quarter ended July 31, 2007. The fourth quarter loss for the prior year included a $194,000 loss related to the discontinued IP hosting business and $76,000 for stock-based compensation expense. Revenues for the quarter were $1,604,000 (including related party revenue of $5,000), a decrease of 44% compared to $2,876,000 (including related party revenue of $223,000) for the quarter ended July 31, 2007.

Cash and cash equivalents and short-term marketable securities as of July 31, 2008 decreased 55% to $2,545,000 from $5,656,000 as of July 31, 2007 primarily as a result of funding operating losses for the year and the $900,000 investment in the Symbio Group, partially offset by the $300,000 sale of the Spark investment to David Lee.

“We are continuing restructuring to improve the Company’s performance and return us to profitability,” stated David Lee, eOn’s chairman and chief executive officer.

About eOn Communications

eOn Communications Corporation is a global provider of innovative communications solutions. Backed by over 20 years of telecommunications engineering expertise, our solutions enable our customers to easily leverage advanced technologies in order to communicate more effectively. To find out more information about eOn Communications and its solutions, visit the World Wide Web at www.eoncommunications.com, or call 800-955-5321.

Note:

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including technical and competitive factors, which could cause the Company's results and the timing of certain events to differ materially from those discussed in the forward-looking statements. Such risks are detailed in eOn Communications Corporation's most recent Form 10-Q filing with the Securities and Exchange Commission.

eOn Communications Corporation and the mark eOn are trademarks of eOn Communications Corporation.