News and Events

eOn Communications Reports Fourth Quarter and Year End Financial Results

SAN JOSE, CA (October 22, 2007) – eOn Communications Corporation™ (NASDAQ: EONC), a leading provider of telecommunications solutions, today reported fourth quarter and fiscal year 2007 results.

Net loss for the fiscal year was $1,330,000 or ($0.10) per common share, compared to net income of $1,637,000 or $0.12 per common share for the fiscal year ended July 31, 2006. Loss from continuing operations was $1,330,000 or ($0.10) per common share compared to income from continuing operations of $861,000 or $0.06 per common share in the fiscal year ended July 31, 2006. Net income for the fiscal year ended July 31, 2006 included $256,000 from discontinued operations, $303,000 gain on disposal of discontinued operations and an extraordinary gain of $217,000. Revenues from continuing operations were $10,662,000, a decrease of 11% compared with $12,014,000 for the previous fiscal year.

Net loss for the quarter was $375,000 or ($0.03) per common share, compared to net income of $231,000 or $0.02 per common share in the quarter ended July 31, 2006. The fourth quarter loss for the current year includes a $194,000 loss related to our start-up IP hosting business and $76,000 for stock-based compensation expense. Revenues for the quarter were $2,897,000, an increase of 2% compared to $2,831,000 for the quarter ended July 31, 2006.

Cash and cash equivalents and short-term marketable securities decreased 15% to $5,656,000 from $6,684,000 as of July 31, 2006.

“Although we did not meet our financial objectives during the year; we have made significant strides in creating future growth opportunities for the Company, particularly in China.” stated David Lee, eOn’s chairman and chief executive officer. “Our China operations were profitable for the last six months, and our recent investments in Symbio are expected to lead to new contact center revenues.”

Conference Call

The Company will host a conference call at 4:45 p.m. ET, October 22, 2007, to discuss fourth quarter and fiscal year results. To hear the call, dial 888-215-6881 or visit our investor relations website at investor.eoncc.com. A replay of the call will be posted to our investor relations website shortly following the call.

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.