15 January 2001
Mitel Invests in a New Photonics Venture
OTTAWA, CANADA--Mitel Corporation (NYSE/TSE:MLT) is establishing equity in a
promising new photonics company that will focus on reducing the cost of
bandwidth distribution in optical networks. The new company - called Optenia
- pools financial, technological and human resources from Mitel, the National
Research Council (NRC) of Canada, and other investors.
Optenia's technological foundation is based on joint research between Mitel
and the NRC in the area of dense wavelength division multiplexing (DWDM). The
collaboration has led to significant product potential that was announced in
August 2000. Mitel's investment in Optenia is expected to accelerate product
development as well as establish new avenues for other research and
Moris Simson is leaving his position at Mitel as senior vice president,
strategy and corporate development and becomes Optenia's new CEO.
'By forming Optenia in conjunction with others, we are pooling resources and
capabilities needed to develop a promising new technology while ensuring we
are well positioned to capitalize on its success,' said Kirk K. Mandy,
president and CEO, Mitel. 'Our approach will also ensure that Mitel remains
tightly focused on its core business which is delivering communications ICs
that support broadband connectivity.'
Mitel's initial stake in Optenia will be reduced proportionally as other
investments are finalized. Mitel will also enjoy certain privileges for joint
business development. For instance, Mitel's Bromont facility will maintain a
strategic manufacturing agreement with Optenia that encompasses foundry
arrangements and joint development of critical microfabrication techniques.
The move is not expected to materially impact Mitel's financial performance
for its current fiscal year.
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
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 risks,
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.
A media conference call will be held today from 9:30-10:00ET. The call number
1-800-478-9326 or 416-695-5801. For a replay, call 1-800-408-3053 or
416-695-5800, passcode 666019. The replay is available until January 22.
A photo accompanies this news release and can be retrieved from the CP Digital
FOR FURTHER INFORMATION PLEASE CONTACT:
Web Site: www.mitel.com