eOn Communications Reports Profitable Third Quarter Results and Announces James W. Hopper New CEO, David Lee to Remain Chairman

Net income for the quarter was $60,000, or $0.02 per common share, compared to a net loss of $376,000 or ($.14) per common share in the second quarter of fiscal year 2009 and compared to a net loss of 1,204,000, or ($0.44) per common share in the third quarter ended April 30, 2008. Revenue of $2,465,000 (with no related party revenue) for the quarter ended April 30, 2009 increased 89% compared to the previous quarter's revenue of $1,307,000, and increased 63% or $951,000, from the $1,514,000 (including related party revenue of $127,000) reported in the third quarter of fiscal year 2008.

Net loss for the nine months ended April 30, 2009 was $450,000 or ($0.16) per common share, compared to a net loss of $3,114,000 or ($1.14) per common share for the nine months ended April 30, 2008. The net loss for the nine months ended April 30, 2008 included a loss from discontinued operations of $584,000 or ($0.21) per common share. Revenue for the nine months ended April 30, 2009 was $5,556,000 (with no related party revenue), an increase of 3% compared to $5,390,000 (including related party revenue of $343,000) for the nine months ended April 30, 2008.

eOn's operating results for the quarter ended April 30, 2009 represent the first profitable quarter since the third quarter ended April 30, 2007. Financial results for the current fiscal year include the April 2009 net income of $112,000 of Cortelco Systems Holding Corp., which was acquired on April 1, 2009.

Cash, cash equivalents and marketable securities decreased 18% to $2,094,000 from $2,545,000 as of July 31, 2008 primarily as a result of funding the merger with Cortelco and operating losses for the nine month period.

The Company also today announces the appointment of James W. Hopper as Chief Executive Officer and Director and Lee M. Bowling as Chief Financial Officer of the Company. James W. Hopper replaces David S. Lee who resigned from the position of Chief Executive Officer. Lee M. Bowling replaces Stephen R. Bowling who is leaving the Company, effective today. James Hopper will fill Stephen Bowling's unexpired term as Director of the Company. David Lee will continue as Chairman of the Board of Directors of the Company.

Prior to joining the Company, Mr. Hopper has been President of Cortelco, Inc. since 1997. Prior to 1997, he was Executive Vice President of Cortelco International, Inc., President and Chief Executive Officer of CMC Industries, and Executive Vice President and Plant Manager of Cortelco USA. Mr. Hopper's experience also includes thirty-five years with ITT Corporation where he held numerous senior management positions. He has served on the Board of Directors of CMC Industries, Cortelco Systems Puerto Rico, International Telecommunications Corp., Ringers, Inc., and KSS Mid-South, Inc. Mr. Hopper holds a B.B.A in Management and Economics from the University of Memphis.

Prior to joining the Company, Lee M. Bowling has been Vice President and Chief Financial Officer of Cortelco, Inc. since 2004. Prior to 2004, Mr. Bowling was Controller of Cortelco, Inc from 1997 until 2004. His experience also includes various supervisory and management positions with ITT Telecommunications and Telephone Electronics Corporation. Mr. Bowling holds a B.S. in Accounting from Mississippi State University.

"We want to welcome Jim and Lee to the eOn team", commented Mr. David S. Lee, Chairman of eOn's Board of Directors. "Their broad base of experience, proven track record, and past management services to the Company on a contract basis since March 2008, will provide a seamless transition and serve the Company well."