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Mitel Corporation. (55PT)

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Monday 12 June, 2000

Mitel Corporation.

Digital Switching Circuits

Mitel Corporation
12 June 2000


TSE SYMBOL:  MLT
NYSE SYMBOL:  MLT
LSE SYMBOL:  MLT.L


New Mitel Chips Save Customers 20 Percent on Low-Voltage Switching
Applications: Highly Integrated ICs for 3.3 volt systems consume less power
and cost less

OTTAWA, CANADA--Mitel Semiconductor, a division of Mitel Corporation (TSE:MLT,
NYSE:MLT), today announced a trio of digital switching integrated circuits
(ICs) that position the company as a leader in the emerging market for
low-voltage switching systems.  The new 3.3V devices are based on Mitel's
proven 5V designs, and provide customers with a 15 to 20 percent cost savings
when upgrading to low-voltage systems.  Designed to optimize data integrity,
Mitel's new ICs switch voice, data and video in PC-based PBXs, wireless base
stations, key telephone systems, low-power switching applications and computer
telephony integrated designs.

New digital switching ICs address evolving market requirements

The market for digital switches in remote access and integrated access devices
will grow 28 percent annually through 2003, according to Dataquest estimates. 
In these systems, where voice, data and video convergence is placing increased
bandwidth demands on the network, manufacturers are facing pressures to
enhance performance while meeting shrinking market windows and price points. 
These factors are driving the transition from 5V to 3.3V switching systems
that consume less power, integrate more functionality on single devices, and
cost less.

'By leveraging the success of our existing line of switches, we have solved
the issues that are defining this market transition.  As a result, we are
expanding our penetration in applications for digital switching ICs,' said
Goutam Mukherjee, product manager, Mitel Semiconductor.  'Our strategy is
based on integrating complete functionality on a proven silicon platform that
provides our customers with an easy route to system upgrades while
substantially reducing cost.'

Low-voltage solutions reduce cost, power

Mitel's 3.3V digital switches integrate complete switching functionality into
a single footprint to optimize board space and reduce cost.  The devices are
pin- and software-compatible with Mitel's line of 5V digital switches,
providing a fast and reliable migration path to customers who are upgrading
their systems for cost and power reduction.  The off-the-shelf solutions
reduce development cost and time-to-market, while accommodating today's
multi-protocol environment of worldwide standards such as ST-BUS and MVIP.

The MT89L80 provides 256 64kbit/s channels to small and medium size voice
switching applications including key telephone and PBX systems.  The
single-chip solution optimizes data integrity while reducing component cost,
board space and power consumption to 15mW.

The MT89L85 is an enhanced IC that switches voice, data or video in PBXs,
medium size digital switching systems, hyperchannel switching, centralized
processing and data multiplexing applications.  The device provides
simultaneous connections for up to 256 64kbit/s channels, which can be
multiplexed to form a 2048 kbit/s stream.  By maintaining frame sequence while
transporting data through the time slot interchange, the MT89L85 minimizes
delays in the voice channel to increase performance and data integrity.

The MT89L86 is a multiple-rate digital switch designed to switch voice, data
or video in PBX, medium size voice/data switching, hyperchannel, centralized
processing and data multiplexing applications.  The device is flexible for
multiple platforms and interfaces, as it accommodates connections for 256 64
kbit/s or 512 64kbit/s channel configurations.  By employing rate-conversion
technology, the MT89L86 provides per-channel selection between variable and
constant throughput delays, allowing voice and grouped data to be switched
without compromising data integrity.

Support, pricing and availability

The new digital switches are available now and all three devices are provided
in 44-pin PLCC or 48-pin SSOP packages.  At significant volumes, the MT89L80
is priced below US $6.00, the MT89L85 below US $7.00 and the MT89L86 below US
$9.00.

About Mitel

Mitel Semiconductor specializes in connectivity solutions for the
communications and medical industries with a product range that includes
components for both wired and wireless networks; microelectronics for enabling
the convergence of voice and data; optoelectronic devices for high-speed
Internet systems; and applications-specific integrated circuits (ASICs) for
medical applications such as pacemakers and hearing aids.

Mitel is a growing global provider of converging voice and data systems and
applications, and specialty semiconductors for the communications industry.
The company has annual revenues of $1.4 billion and employs some 6,000 people
worldwide.

Certain statements in this press release constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve known and unknown risk, uncertainties,
and other factors which may cause the actual results, performance or
achievements of the Company, to be materially different from any future
results, performance, or achievements expressed or implied by such
forward-looking statements. Such risks, uncertainties and assumptions include,
among others, the risks discussed in documents filed by the Company with the
Securities and Exchange Commission. Investors are encouraged to consider the
risks detailed in those filings.


FOR FURTHER INFORMATION PLEASE CONTACT :

Mitel Semiconductor
Patti Dalby
(613) 592-2122
E-mail: patti_dalby@mitel.com
Website: www.mitelsemi.com
or
BW&A
Tiana Wiersma
(503) 241-1574
E-mail: tiana@bwapr.com