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Mitel Corporation. (55PT)

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Wednesday 14 June, 2000

Mitel Corporation.

Bluetooth Applications

Mitel Corporation
14 June 2000

FOR : Mitel Corporation


Mitel Announces Industry's First Bluetooth Chip with Full-Duplex CODEC: New
baseband controller maximizes voice quality in emerging Bluetooth applications

OTTAWA, CANADA--Mitel Semiconductor, a division of Mitel Corporation
(TSE/NYSE:MLT), today announced the ultra-low power MT1020, the world's first
Bluetooth(tm) baseband controller to include a full-duplex audio CODEC.  The
MT1020, which performs voice and data processing in Bluetooth(tm)
applications, is based on a unique architecture that is optimized for voice,
while addressing the power, cost and form factor requirements of the Bluetooth

'Mitel sees voice as being essential to Bluetooth, so we are offering a full
voice and data solution,' said Martin Huckle, Bluetooth product marketing
manager, Mitel Semiconductor.  'With the MT1020 we have applied our proven
expertise in telephony, voice and data convergence to quickly provide a
solution that meets consumer expectations for Quality of Service (QoS),
performance, cost and power consumption.'

Bluetooth is a widely supported industry specification for a wireless data
link that allows short-range transmission of voice and data within and between
electronic devices and the communications infrastructure.  According to
Cahners InStat, the market for Bluetooth functionality in host and remote
devices will surpass US $3.0 billion by 2005.  The MT1020 is a key element of
Mitel's strategy to support cable-free connections between headsets, cellular
handsets, computer peripherals, digital cameras, PDAs, notebook computers and
other applications.

Ultra-low power baseband processor includes integrated CODEC in a flexible

The MT1020 is a Bluetooth-compliant baseband processor that utilizes an
ultra-low power architecture, ideal for a wide range of Bluetooth
implementations, especially those involving voice traffic.  A Bluetooth module
incorporating the MT1020 typically consumes less than half the power of other
solutions.  The complete processor solution includes Mitel's ARM7TDMI-based
Firefly embedded microcontroller core, Mitel's Bluetooth Baseband Peripheral
(BBP) block, an audio CODEC, program memory, and USB and UART host interfaces.
Consistent with Mitel's low power design strategy, the integrated CODEC can be
completely powered down for data-only applications.

Bluetooth systems operate in the unlicensed 2.4GHz frequency range, where
crowded traffic conditions cause collisions, noise, delay and loss of data. 
For Bluetooth systems to achieve the QoS expected by consumers, the system
must be immune to these effects.  Mitel enhances QoS through the BBP system,
which supports timing, prioritization, and data integrity of converged voice
and data traffic.  The BBP also offers full Bluetooth multipoint connectivity.
Mitel supports the MT1020 with a full software protocol stack up to the HCI

The MT1020's CODEC includes a microphone amplifier, earpiece driver and filter
compliant to the ITU-T G.712 standard.  With its extremely low power
consumption, the MT1020 is ideal for portable Bluetooth applications.  Mitel
minimizes power consumption in part by implementing all the time-critical
elements of the Bluetooth protocol stack in hardware as opposed to software,
which lowers CPU overhead.  The device further reduces power consumption by
operating the internal core with a 1.8V power supply, and is also compatible
with external 3.3V devices.

Bluetooth development kit and example platform

Mitel supports the MT1020 with a complete Bluetooth development kit and sample
design platform.  The kit includes software and applications information to
allow new adopters to test product ideas and prototypes, and develop their
high-level applications software.  The Bluetooth development kit will be
available in August 2000, priced at US $4,000 each.

Pricing and Availability

The MT1020 will be available in sample quantities in August 2000, with volume
production scheduled for November 2000.  Packaged in a 121-pin SSBGA (10 x
10mm), the device will be priced at US $7 in volume quantities.

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 6,000 people

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.

Bluetooth is a trademark of Telefonaktiebolaget LM Ericsson AB of Sweden.


Mitel Semiconductor
Patti Dalby
(613) 592-2122
Web Site:
Tiana Wiersma
(503) 241-1574