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Mitel Corporation. (55PT)

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Monday 25 September, 2000

Mitel Corporation.

New High-Speed Packet

Mitel Corporation
25 September 2000


New High-Speed Packet Switching Chip from Mitel Enhances IP Routing: Targets
high growth LAN switching market

OTTAWA, CANADA--Mitel Semiconductor, a division of Mitel Corporation
(NYSE/TSE:MLT), today announced the DS313, a single chip distributed switch
for Layer 2, 3, and 4 packet forwarding and filtering in Local Area Networks.
The device, which includes 12 Fast Ethernet ports and one gigabit port,
operates at full wire-speed and includes a full suite of advanced features
such as enhanced Quality of Service (QoS), Layer 3 routing, IP Multicast,
protocol filtering, port mirroring, port trunking, buffer management, and
stacking.

The DS313 was designed by Vertex Networks, Inc. (now Mitel Semiconductor VN.
Inc.), which was acquired by Mitel in July 2000 to bring packet switching and
routing expertise to Mitel's portfolio of end-to-end broadband connectivity
solutions. The chip's robust QoS capability, low latency and high
frame-forwarding rate make it an ideal choice for time critical data.

The DS313 is the latest member of the XF2080 family that supports advanced
network management software and QoS standards for packet prioritization. The
DS313 is highly integrated to reduce the overall system chip count and glue
logic.

According to IDC, LAN switching represents a high-growth opportunity in the
enterprise marketplace.* The need for high-availability networks is a key
driver of LAN switching growth, and Layer 3 switches are expected to account
for most of the revenue in this segment from 1999 to 2003. Layer 3 shipments
are forecasted to increase from nearly 5 million ports and $3 billion in
revenue in 1999 to more than 59 million ports and $11.4 billion in revenue in
2003.

The DS313 provides full wire-speed Layer 3 IP switching by performing IP
address searches based on a longest prefix-match. The DS313 has the capacity
usually associated with high-end routers by supporting up to 22K IP subnets
per chip or 64K MAC addresses per chip and per system.

'While most of our competitors only route 16 or 32 longest prefix IP
addresses, the DS313 is capable of routing over 6,000,' said Tim Thompson,
director of marketing, Mitel Semiconductor VN. 'The technologies integrated
into the DS313, when combined with Mitel's existing products, provide a
formidable solution for numerous LAN and WAN specific applications, including
remote access concentrators and VoIP gateways.' 

Enhanced Quality of Service  

QoS is needed to control the network services of applications and time
sensitive traffic such as voice and video. The DS313 sorts the incoming
traffic and prioritizes the output into four different QoS classifications
based upon L4 TCP/UDP source or destination port number: IP address; DS/TOS
field; Layer 2 MAC address; and VLAN priority field in VLAN tag. Once the
packets are mapped into a queue, they are scheduled using one of the following
transmission control schemes: strict priority, WRR (Weighted Round Robin) and
dynamic priority.  

High-speed Scaling Technology

The DS313's Xpipe interface allows multiple DS313's to be interconnected using
a switch fabric chip, the SF240.  Up to 8 DS313 chips can be connected through
the 3.2Gbps Xpipe to form a non-blocking Layer 3 switch.  When combined with
VerSA, a stacking software suite developed by Vertex, the DS313 provides a
complete solution for adding IP routing switches to wiring closet stacks.
VerSA software includes stacking support for Spanning Tree protocol, IGMP,
network management and the synchronization of the switching database.
Additionally, it supports features including trunking, VLANs, port mirroring,
and source port locking.  The robust stacking solution allows more than 32
switches to be stacked, without limitations.

Support, Price and availability

A complete design kit will be available in October for US $6,000, which
includes executable software, schematics, design layout and a complete
reference system.

About Mitel

Mitel Semiconductor specializes in connectivity solutions for the
communications industry 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 global provider of semiconductors and communications systems for
converging voice and data networks in a rapidly evolving Internet economy. 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.

* Worldwide LAN Switch Market Review and Forecast, 1997-2003, by Esmarelda
Silva, Nov 99, IDC number 20502

The DS313 will be demonstrated September 26-28 at:

Networld + Interop Atlanta

Georgia World Congress Center

Booth 4371


FOR FURTHER INFORMATION PLEASE CONTACT:

Mitel Semiconductor
Patti Dalby
(613) 592-2122
E-mail: patti_dalby@mitel.com
Website: www.mitel.com

OR

BW&A
Tiana Wiersma
(503) 241-1574
E-mail: tiana@bwapr.com