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Interspeed, Inc. (ticker: ISPD, exchange: Nasdaq) News Release - Thursday,
February 03, 2000
Interspeed Signs $12 Million Global Reseller Contract With
Cabletron Systems
Interspeed Signs $12 Million Global Reseller Contract With Cabletron Systems
Expanded Relationship Strengthens Product and Service Offerings
for the MTU Market
NORTH ANDOVER, Mass., Feb. 3 /PRNewswire/ -- Interspeed, Inc. (Nasdaq:
ISPD), a leading provider of integrated, high-speed digital subscriber line
(DSL) access solutions for building-centric Internet Service Providers, today
announced it has signed a $12 million global reseller agreement with Cabletron
Systems, Inc. (NYSE: CS), a premier provider of world-class networking
solutions. Under the terms of the 18-month agreement, Cabletron will resell
Interspeed's complete family of integrated, multi-service DSL Access Routers,
including the Interspeed 1000, Interspeed 500, and Interspeed DART. By
reducing the cost and complexity of delivering Internet access services to
Multi-Tenant Unit (MTU) service providers, Interspeed's single-box products
should make it easier for Cabletron to target this fast-growth market.
The $12 million contract expands the strategic relationship the two companies
formed in June 1999, and should further position Interspeed and Cabletron as
the leading DSL equipment suppliers to the burgeoning MTU market.
Additionally, Interspeed granted Cabletron the right to receive warrants to
purchase up to 150,000 shares during the 18-month term of the reseller
agreement upon meeting specified product requirements. Interspeed also has
joined Cabletron's Synergy Plus Partners Program, allowing Interspeed to
resell Cabletron's innovative products, including the family of SmartSwitch
routers. As a result, Interspeed can now provide one-stop shopping for
service provider's complete building-centric communication needs.
"We believe that Interspeed's integrated product architecture makes it faster
and easier for Cabletron to address the very strong demand for cost-effective,
high-speed Internet access," said Rom Perreira, chief operating officer for
Cabletron Systems. "We have had great initial success with Interspeed
targeting the fast-growth MTU market. Through our global reseller agreement
with Interspeed, Cabletron will continue to be successful in providing MTU
service providers a single solution for broadband services ranging from
Internet access and video to voice."
"Through our combined efforts, Interspeed and Cabletron are enabling
non-traditional service providers to capitalize on the significant MTU market
opportunity," said Steve Ide, president, Interspeed. "Because there is no need
for lengthy negotiations to get access to copper, we expect more
entrepreneurs to quickly deploy in-building DSL services. We believe that the
paring of Interspeed and Cabletron products represents a complete solution
unique in its ability to keep pace with the rapid deployment plans of this new
breed of service provider."
About Interspeed's Product Family
Interspeed offers a highly scalable family of DSL Access Routers -- the
Interspeed 1000, Interspeed 500, and Interspeed DART. All three products
include complete DSL aggregation, Layer 2 switching, IP Routing, and VPN
functions in a single device, thus eliminating the need for service providers to
purchase these components separately, and saving significant cost. The
Interspeed DART is the industry's first complete, low-density DSL solution that
enables service providers to deliver high-speed Internet access and other
advanced IP applications to the MTU market. The Interspeed 500 is designed
for larger MTU and Central Office environments, and the Interspeed 1000 is
ideal for larger deployments in central office environments. The three products
are managed with Speedview(TM), a powerful set of administration and
management functions that make installation as simple as "plug and play."
About Cabletron Systems
Cabletron Systems, a premier provider of world-class networking solutions,
delivers reliable network access and communications to millions of people
worldwide. With scaleable products designed for Global 1000 enterprise
networks, service providers and small businesses, Cabletron is the e-business
communications specialist in the Internet economy. Cabletron Systems
products and services are used by leading Internet Service Providers including
Mindspring and Intellispace, leading e-business retailers such as
toysmart.com, government organizations such as NASA and thousands of
enterprise, healthcare, manufacturing and financial customers around the
world. Cabletron Systems also supports a global network of Synergy Plus
authorized distributor and resellers who deliver the award winning technology
and services in their regional markets. Listed on the New York Stock
Exchange for more than a decade under the symbol CS, Cabletron is an S&P
500 index company. Cabletron's web site can be reached on the Internet at
cabletron.com. |
