Exhibit 1



                               Steven G. Mihaylo
                                P.O. Box 19790
                              Reno, Nevada 89511


                                 April 3, 2006


VIA EMAIL AND OVERNIGHT COURIER
-------------------------------

Board of Directors of Inter-Tel, Incorporated
c/o Alex Cappello, Chairman
1615 South 52nd Street
Tempe, Arizona 85281

Dear Members of the Board of Directors:

         As indicated in the Schedule 13D that I filed on March 6, 2006, I
have been exploring various alternatives with respect to my ownership stake in
Inter-Tel, Incorporated (the "Company"). In that connection, I am discussing a
possible arrangement between myself and Vector Capital Corporation (together
with its affiliates, "Vector"), a technology-focused private equity fund with
substantial experience investing in and acquiring technology companies. We
have been meeting to discuss the possibility of together pursuing an
acquisition of the Company and the manner in which that might best be
effected. Together, we believe that the best path forward for both ourselves
and the Company's shareholders is to work with you to negotiate an all-cash
acquisition of the Company. We are writing to propose a meeting with the
Company's Board of Directors to discuss such a transaction.

         I take tremendous pride in the Company's accomplishments to date, and
feel deep personal gratitude toward the devoted employees, dealers and
customers that have supported the Company over the years. I am deeply
concerned, however, with the Company's ability to quickly and efficiently
complete the critical transition of its business from a circuit-switched model
to a converged, IP-centric model in an increasingly competitive marketplace.
This challenge is exacerbated by the costs and distractions associated with
maintaining the Company's publicly-traded status. I believe that the Company's
current shareholders will face many quarters, if not years, of volatility and
uncertainty during this transition.

         Vector and I are prepared to take on the risk associated with the
transition of the business and, at the same time, pay the other existing
shareholders a meaningful premium for their shares. Our strong preference is
to work cooperatively with the Board in this process and to immediately
commence an expedited and limited due diligence process. Although we may elect
to proceed even without the Board's cooperation, we anticipate that such
cooperation and access would result in a process that is mutually beneficial
and would enable us to pay the best price to the Company's shareholders.

         We believe that a sale of the Company at this time will maximize
value for the Company's shareholders and relieve them of the significant
operational and market risks that they would otherwise face going forward. As
the Company's founder and single largest shareholder, I strongly believe that
our acquisition of the Company is the best path for the Company during this
critical, but risky, transitional phase.

         We are eager to complete a transaction with the Company and look
forward to hearing from you soon. In light of your recent Form 8-K filing
regarding advance notice provisions that have been added to the Company's
bylaws, it is important that I hear back from you by 5:00 p.m., Pacific time,
on Wednesday, April 5. I can be reached at 775-338-4699 or at 602-738-9611 or
by email at stevemihaylo@cox.net or stevemihaylo@yahoo.com.
            --------------------    -----------------------


Sincerely,

/s/ Steven G. Mihaylo

Steven G. Mihaylo


cc:      Vector Capital Corporation (via email)
         Stephen M. Wurzberg  (via email)
         Robert G. Day  (via email)