News and Events

eOn Communications Reports Increased Fourth Quarter and Total Year Revenue and Profitability

SAN JOSE, CA (November 1, 2010) – eOn Communications Corporation™ (NASDAQ: EONC) (the “Company”), a leading provider of telecommunications solutions, today reported fourth quarter and fiscal year ended July 31, 2010 results.

Fourth quarter revenue increased 8% to $5,477,000 from $5,089,000 in the fourth quarter of last year and increased 53% compared to revenues of $3,576,000 in the third quarter of this year. Net income for the quarter attributable to equity holders of the Company was $383,000 or $0.14 per common share compared to net income of $111,000 or $0.04 per common share in the quarter ended July 31, 2009. Included in net income for the quarter was $174,000 of imputed interest expense due to the amortization of the difference between the face value of the contingent obligation to the former Cortelco shareholders and the discounted present value of the note payable recorded on the balance sheet. Net income for the quarter excluding the impact of the imputed interest expense was $557,000 or $0.20 per common share.

Total year revenue increased 61% to $17,094,000 from $10,645,000 in fiscal year 2009. The Company generated income, net of non-controlling interest, for the fiscal year ended July 31, 2010 of $467,000 or $0.17 per common share compared to a net loss of $339,000 or $0.12 per common share for the fiscal year ended July 31, 2009. Net income for the year excluding the impact of imputed interest expense of $674,000 was $1,141,000 or $0.41 per common share.

Financial results for the fourth quarter and fiscal year include a gain from the bargain purchase of majority interest in Cortelco Systems Puerto Rico of $497,000 and Cortelco Systems Puerto Rico income, net of non-controlling interest, of $41,000 from the June 9, 2010 acquisition date through July 31, 2010.

Cash, cash equivalents and marketable securities increased 36% to $4,108,000 as of July 31, 2010 from $3,010,000 as of July 31, 2009.

Mr. David Lee, Chairman of eOn’s Board of Directors noted, “Our current positive results show the commitment we have to increase revenue and profitability. The acquisition of majority interest in Cortelco Systems Puerto Rico on June 9, 2010 has increased the company’s value and we intend to continue efforts to maximize results.”

About eOn Communications

eOn Communications Corporation is a global provider of innovative communications solutions. Backed by over 30 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, the mark eOn, eQueue and Millennium are trademarks of eOn Communications Corporation.