NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: NEWBRIDGE NETWORKS CORPORATION
TSE SYMBOL: NNC
NYSE SYMBOL: NN
JUNE 26, 1998
Province of New Brunswick and Newbridge Networks Announce
Major R & D Investment to Create Up to 300 New High-Tech
Jobs
SAINT JOHN, NEW BRUNSWICK--Joint Investment a Major Boost to New
Brunswick's Information Technology Sector
The Province of New Brunswick and Newbridge Networks, a world
leader in communications networking based in Kanata, Ontario,
today announced that they will be making a major investment in
research and development in Newbridge and the Newbridge Affiliate
companies based in New Brunswick over the next four years. Camille
Th‚riault, Premier of New Brunswick, the Honourable Roly
MacIntyre, Minister of Economic Development, Tourism and Culture,
and Terence Matthews, Chairman and Chief Executive Officer,
Newbridge Networks, made the announcement at a New Brunswick press
conference.
The joint investment is expected to create up to 300 high-quality,
knowledge-based jobs in New Brunswick over a four-year period.
"Today's announcement is an exciting step that will further
position New Brunswick as a national leader in the Information
Highway industry," said Premier Th‚riault. "We believe our joint
investment with Newbridge Networks will attract other high-tech
companies to locate in New Brunswick and, more importantly,
encourage our brightest and most promising students to stay in the
province because of the stimulating, knowledge-based jobs that
will be created."
"Our financial commitment to New Brunswick's growing technology
sector is wonderful news for the province's economy and its
people," added Minister MacIntyre. "The high-quality, long-term
technology-based jobs that will result from our relationship with
Newbridge Networks will significantly enhance the province's image
as a centre of excellence in the Information Highway industry."
The relationship between the Province of New Brunswick and
Newbridge Networks will involve a shared investment of $10 million
each, which will be used to launch a variety of innovative
research and development initiatives. Of the $10 million portion
being contributed by the province, $2 million will be in the form
of a non-repayable grant. The remaining $8 million will be
repayable in the form of royalties on revenues created by the
various research and development projects.
The first New Brunswick-based Newbridge Affiliate company to
receive funding from the research and development agreement will
be ImagicTV. ImagicTV produces business application software which
enables service providers to deliver broadcast television to
residential subscribers over high-speed Internet Protocol (IP)
networks. The Company will receive $6.4 million over the next four
years; $3.2 million from Newbridge and $3.2 million from the
province. ImagicTV plans to use the funding to create 90 software
development jobs.
"We are extremely pleased that ImagicTV is receiving the support
of such leading innovators in research and development," said
Peter Jollymore, Chairman of the Board of ImagicTV. "Newbridge and
the Province of New Brunswick are strengthening ImagicTV's ability
to attract highly skilled professionals to New Brunswick's
information technology sector."
"In the past few years, New Brunswick has created the environment
necessary to attract high-tech investment," said Terence Matthews.
"Today's announcement is another major boost to the province's
high-tech sector, and we are hopeful that it will encourage other
global knowledge-based industries to establish a presence in New
Brunswick."
ImagicTV is a Newbridge Affiliate and an affiliate of Bruncor's
principal subsidiary NBTel. Bruncor Inc. (TSE:BRR) holds the
majority of ownership in ImagicTV. The balance of ownership is
held between Celtic House International Corporation and Newbridge
Networks. The company is federally incorporated under the laws of
Canada with offices in Saint John, New Brunswick and Fredericton,
New Brunswick, Canada. ImagicTV's web site address is
www.imagicTV.com.
Newbridge Networks (NYSE: NN; TSE: NNC) designs, manufactures,
markets and services networking solutions to organizations in more
than 100 countries. Newbridge leverages its relationship with 16
Affiliate companies and strategic alliances with Siemens and 3Com
Corporation to deliver seamless, end-to-end solutions. Newbridge
customers include the world's 250 largest telecommunications
service providers and more than 10,000 corporations, government
organizations and other institutions. Founded in 1986, the Company
employs more than 6,000 people on five continents. News and
information are available at www.newbridge.com.
Newbridge, logo are registered trademarks of Newbridge Networks
Corporation.
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