COM DEV Solidifies Relationship with Nortel Networks
Two new deals reinforce company's leadership position
CAMBRIDGE, ON, Dec. 21 /CNW/ - COM DEV International Ltd. (TSE/ME:CDV) today announced two significant developments which solidify its strategic relationship with Nortel Networks into the next millenium.
In the first agreement of its kind for COM DEV, the company has been selected to supply Nortel Networks with dielectric RF conditioning equipment for Code Division Multiple Access (CDMA) base station technology and play a significant role in supporting Nortel Networks' growing CDMA product line. Under the terms of the agreement, the first production units are scheduled to ship in January 1999.
''We are pleased Nortel Networks recognizes the strength of COM DEV's engineering and manufacturing capabilities,'' said John Keating, President of COM DEV Wireless Group. ''This program represents a significant breakthrough for COM DEV and the Wireless Group.''
COM DEV also signed a Memorandum of Understanding (MOU) on December 8, 1998 with Nortel Networks to supply RF conditioning equipment through March 2000. Under the terms of the MOU, COM DEV will supply GSM 900MHz, 1800MHz and 1900 MHz-protocol equipment. The combined forecasted value of these two opportunities is estimated at $49 million.
The RF conditioning equipment within a base station processes the signals going to and arriving from mobile telephones into a form suitable for further processing. COM DEV provides Nortel Networks with filtering and combining technology which enhances the system performance of the base station.
Nortel Networks works with customers worldwide to design, build, and
deliver telephony and IP-optimized networks. Customers include: public and private enterprises and institutions; Internet service providers; local, long-distance, cellular and PCS communications companies; cable television carriers; and utilities.
Nortel Networks common shares are listed on the New York, Toronto, Montreal, Vancouver, and London stock exchanges. Nortel Networks had 1997 revenues of US$15.5 billion and Bay Networks, a wholly owned subsidiary of Nortel Networks, had revenues of $US2.4 billion during its most recent fiscal year. The combined company's workforce totals approximately 80,000 employees worldwide.
COM DEV International Ltd., a member of the TSE 300 (TSE/ME:CDV),is a leading manufacturer of space and ground-based wireless communications products and subsystems, and consists of three operating units: the Space Group, the Wireless Group, and COM DEV Wireless Systems.
The Space Group manufactures advanced products that are sold to the major satellite prime contractors for use in commercial communications satellites. The Wireless Group manufactures ground-based infrastructure subsystems used in microwave and radio frequency systems, such as GSM and CDMA-based digital telephone systems, and wireless local loop networks. These products are sold primarily to major PCS wireless equipment vendors. COM DEV Wireless Systems
manufactures advanced RF and digital coverage enhancement products, such as indoor distribution systems, which are sold to wireless system operators.
COM DEV is a Canadian-based technology company and employs more than 1,000 people in facilities in Ontario, New Brunswick, the United States, the United Kingdom and China.
This news release may contain certain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from results indicated in any forward-looking statements. The company cautions that, among other things, in view of the rapid changes in the wireless communications markets and technologies, and other risks including the cost and market acceptance of the company's new products, the level of individual customer procurements and competitive product offerings and pricing, and general economic circumstances, the company's business prospects may be materially different from forward-looking statements made by the company.
For further information: Investor Relations/Media Contact: Anita Davis, Vice President Corporate Development, Tel: (519) 622-5004, Fax:
(519) 622-6391, E-mail: investor.relations@comdev.ca, Website:
www.comdev.ca; Analyst Contact: David Belbeck, Chief Financial Officer, Tel: (519) 622-2300 ext. 288, E-mail: david.belbeck@comdev.ca |
