Nortel Networks Announces Completion of Acquisition of Qtera
Continues First Mover Advantage In Optical Internet BRAMPTON, Ont., Jan. 28 /CNW/ - Nortel Networks (NYSE/TSE: NT) today announced the completion of the acquisition of Qtera Corporation, a privately-held company that produces ultra-long-reach optical networking systems, for up to US$3.25 billion in Nortel Networks common shares, a portion of which is contingent upon Qtera achieving certain business objectives. Qtera's scalable Optical Internet capabilities enable high performance, rapid wavelength provisioning and restoration, and most importantly, lowest cost survivable bandwidth. "We are moving at the speed of light to maintain our first mover advantage in the Optical Internet space", said John Roth, president and chief executive officer, Nortel Networks. "Together we are going to continue to redefine the speed, reliability, quality and economics of the Internet. This new, high performance Internet will provide the foundation for a new era of eBusiness and communications." As a result of the merger, Qtera became a wholly-owned subsidiary of Nortel Networks and each outstanding share of Qtera preferred stock and common stock was converted into a right to receive 1.3350 Nortel Networks common shares, for a total of approximately 23 million Nortel Networks common shares. Approximately 5 million Nortel Networks common shares were reserved for issuance in respect of Qtera options and warrants assumed by Nortel Networks. In addition, up to US$500 million in Nortel Networks common shares may be issued to former Qtera shareholders upon Qtera achieving certain business objectives. Qtera's operations will remain in Boca Raton, Florida and Richardson, Texas. Qtera president and chief executive officer Fahri Diner will continue to lead this business as president, reporting to Mike Unger, president, Optical Networks, Nortel Networks. Nortel Networks is a global leader in telephony, data, eBusiness, and wireless solutions for the Internet. The Company had 1999 U.S. GAAP revenues of US$21.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet through Unified Networks that promise a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price and product competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Nortel Networks to integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; unanticipated impact of Year 2000 issues; and the impact of consolidations in the telecommunications industry. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. %SEDAR: 00000596E -30- For further information: Media Relations: David Chamberlin, Nortel Networks, (972) 685-4648, firstname.lastname@example.org; Trade Media: Ann Fuller, Nortel Networks, (613) 768-4512, email@example.com; Investor Relations: Angela McMonagle, Nortel Networks, (905) 863-6044, firstname.lastname@example.org; Archived images on this organization are available through CNW E-Pix at www.newswire.ca. Images are free to members of The Canadian Press.
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