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Mitel Corporation. (55PT)

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Monday 17 April, 2000

Mitel Corporation.

Cisco Chooses Mitel Digital for Data Convergence

Mitel Corporation
17 April 2000

Cisco Chooses Mitel Digital Switching Integrated Circuits to Fuel
High-Performance Voice and Data Convergence: Integrated circuits deliver
superior quality voice to the Internet

OTTAWA, CANADA--Mitel Semiconductor, a division of Mitel Corporation (TSE:
MLT, NYSE: MLT), today announced that Cisco Systems (Cisco) has chosen Mitel's
MT90863 and MT90826 integrated circuits (ICs) to fuel the convergence of voice
and data signals in emerging data access products. The digital switching ICs
integrate voice, data and video Time Division Multiplexed (TDM) traffic into
applications on Cisco access concentrators, routers, gateways and switching

'Mitel Semiconductor's IC solutions are already widely used in our data
networking systems,' said Trevor Schulze, hardware engineering manager with
Cisco's Remote Access Business Unit. 'Based on Mitel's proven track record and
leading-edge semiconductor technology for voice and data applications, we are
integrating their digital switching ICs into our next-generation convergence

The MT90863 and MT90826, announced in March 1999, are successful additions to
Mitel Semiconductor's growing portfolio of WAN Internetworking components -
one of the largest and fastest-growing segments of the division's business.
Combining advanced mixed-signal design capabilities with a comprehensive
understanding of industry standards, Mitel Semiconductor's ICs enable vendors
to develop WAN solutions that bridge from today's installed base to emerging
networks, and support the transition to packet-based applications such as
Voice over ATM and Voice over IP (VoIP). Several industry leaders are
currently integrating Mitel's WAN Internetworking ICs into a range of new
platforms for data networking and WAN access systems.

According to International Data Corporation, the market for remote access
systems is increasing rapidly, from US $3.8 billion today to an estimated US
$7.7 billion by 2003*. The growing number of devices connected to the Internet
is forcing Internet Service Providers (ISPs) to concentrate thousands of calls
through network access systems, while maintaining the high performance and
reliability that consumers demand.

To deliver large numbers of high-quality calls at reduced cost, vendors of
carrier-class remote access systems require specialized Internetworking ICs.
Mitel Semiconductor's MT90863 and MT90826 digital switching ICs are designed
to fulfill these requirements. The high-capacity devices can concentrate
hundreds of Constant Bit Rate (CBR) channels while achieving performance and
fast implementation of medium to large carrier-class remote access systems.

'Mitel Semiconductor's digital switch devices are renowned for their
integration of two very important elements -- complex functionality and
simplicity of use,' said Mauricio Peres, director of strategic marketing,
Mitel Semiconductor. 'These two basic elements have established Mitel
Semiconductor as the leader in TDM switching components in the merchant
semiconductor market. Our strategy for success in TDM switching is to provide
leading Quality of Service (QoS), a critical component in supporting the new
generation of multi-service networks.'

Advanced voice and data technology

For data access equipment, central office equipment, or large PBX systems, the
award-winning MT90826 Quad Digital Switch (QDX) provides a low-cost and
low-power timeslot interchange solution for TDM traffic. Power consumption is
minimized, because this product operates at 3.3V with 5V tolerant I/O's. With
a non-blocking 4,096-channel capacity, the MT90826 suits a wide variety of
applications. Mitel Semiconductor was the first to introduce a quad digital
switching IC supporting rate conversion and data rates of up to 16.384 Mb/s.

Designed for the emerging Internet access market and WAN networking products,
Mitel Semiconductor's MT90863 Rate Conversion Digital Switch (RCDX) is a
specialized 3V timeslot interchange that manages and switches multi-rate
voice, data and video traffic. Out of a total of 2,048 channels on the
backplane, users can add or drop 512 channels into the application streams to
accommodate a broad range of interfaces such as T1/E1, DSP, fax, and T3/E3
access line cards. By supporting multi-rate traffic and higher bandwidths, the
RCDX provides bandwidth management capability and reduces system cost and form
factor by minimizing the size of interconnects and backplanes.

By using an architecture that is common to other digital switches in Mitel
Semiconductor's switch family, Mitel substantially eases software development.
Customers will find it easy to make software upgrades from earlier switches as
the architecture is designed to support the evolution to future switching
products. To further increase flexibility, both products are compatible to
ST-BUS & GCI standards. The MT90863 can also be used in H.100, SCSA, MVIP(tm)
and H-MVIP environments.

Proven track record for design support and implementation

Cisco chose Mitel's MT90863 and MT90826 in part because of Mitel
Semiconductor's proven track record in design support. The chips are supported
through Mitel Semiconductor's dedicated global design support team, which aids
system implementation though test and applications knowledge.

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 more than CDN $1.3 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 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.

*International Data Corporation, No 19358, Volume 1, 'Remote Access and
VoIP-Enabled RAS Market Review and Forecast, 1996 to 2003,' by Brad Baldwin,
June 1999.


Mitel Semiconductor
Patti Dalby
(613) 592-2122
E-mail: [email protected]
Web Site:
Tiana Wiersma
(503) 241-1574
E-mail: [email protected]


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