AVOCENT REVISES FOURTH QUARTER RESULTS
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Does Not Expect to Pay Contingent Consideration on LANDesk Acquisition

HUNTSVILLE, Ala. (March 1, 2007) — Avocent Corporation (NASDAQ: AVCT) announced today that it was revising previously reported fourth quarter revenue for its LANDesk Division to reduce revenue by $2.8 million and consolidated operational income by $1.9 million.  Together with a reduction in tax expense discussed below, consolidated GAAP net income was reduced by $0.7 million.  Avocent also announced that it now does not expect to pay the previously accrued contingent consideration of $27 million relating to the LANDesk acquisition.

“We became aware that several previously recorded transactions did not meet the stringent revenue recognition criteria for sales of software and that certain royalties earned by LANDesk should have been recorded prior to the closing date of the acquisition,” stated Edward H. Blankenship, Avocent’s chief financial officer. “These revenue adjustments were partially offset by lower management bonus accruals, and we will continue to evaluate certain other costs, primarily commissions, related to these transactions. We also determined that certain tax benefits relating to Avocent stock options exercised in 2006, which were assumed in prior acquisitions, should be included in the determination of net income instead of equity for GAAP purposes.”

As revised, Avocent’s fourth quarter consolidated revenue increased 55% to $166.1 million in 2006 from $106.8 million in 2005 and fourth quarter operational income per diluted share increased to $0.59 in 2006 from $0.49 in 2005.  Revised consolidated revenue for the year ended December 31, 2006 increased 41% to $520.9 million from $369.9 million in 2005. Revised operational income per diluted share increased to $1.96 in 2006 from $1.31 in 2005.

“We remain very excited and optimistic about the many opportunities we have with LANDesk and the joint product development activities we have underway,” added John Cooper, Avocent’s chairman and chief executive officer.  “Over the past few weeks I have talked with several key channel partners and LANDesk sales force members, and I am quite encouraged by the strength and depth of our relationships with these key contributors and the pipeline of potential deals we have to pursue.”

A summary of the revised results for the fourth quarter of 2006 follows at the end of this release. More information on the 2006 results can be found in Avocent’s Annual Report on Form 10-K filed with the Securities and Exchange Commission today. 

Use of Non-GAAP Financial Measures

Income prior to intangible amortization, stock compensation and in-process research and development expenses, or operational income as used in the attached financial statement schedules, is not a measure of financial performance under generally accepted accounting principles (GAAP) and should not be considered a substitute for or superior to GAAP. Avocent’s management uses operational income as a financial measure to evaluate performance and allocate resources within the Company.  Management believes this measure presents the Company’s results on a more comparable operational basis by excluding non-cash amortization expenses, non-operational expenses associated with acquisitions, and non-cash stock-based compensation expense. Avocent believes that operational income is a measure of performance used by many investment banks, analysts, investors and others to make informed investment decisions.  Other companies may calculate operational income in a different manner so this measure may not be comparable to similar measures presented by other companies.  A reconciliation of Avocent’s results using operational measures and GAAP is set forth in the condensed consolidated statements of operations included in this press release.

 About Avocent Corporation

Avocent delivers IT operations and infrastructure management solutions for enterprises worldwide, helping customers to reduce costs and simplify complex IT environments via integrated, centralized in-band and out-of-band hardware and software.  Through LANDesk, Avocent also is a leading provider of systems, security, and process management solutions. 

Forward-Looking Statements

This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include statements regarding our opportunities and joint product development activities with LANDesk, the pipeline for future LANDesk deals, and the contingent consideration not earned or payable to former LANDesk shareholders.  These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with general economic conditions, risks attributable to future product demand, sales, and expenses, risks associated with product design efforts and the introduction of new products and technologies, and risks associated with obtaining and protecting intellectual property rights.  Other factors that could cause operating and financial results to differ are described in Avocent’s annual report on Form 10-K filed with the Securities and Exchange Commission today.  Other risks may be detailed from time to time in reports to be filed with the SEC. Avocent does not undertake any obligation to publicly update its forward-looking statements based on events or circumstances after the date hereof.

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