Now if they can move product????
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: PLAINTREE SYSTEMS INC.
TSE SYMBOL: LAN
NASDAQ SYMBOL: LANPF
OCTOBER 13, 1998
Plaintree Systems and Nortel Networks Finalize Strategic
Alliance
OTTAWA, ONTARIO--Nortel Networks completes $9 million investment
in Plaintree; Companies will jointly develop WAN products
Plaintree Systems Inc. (NASDAQ: LANPF; TSE: LAN), a leader in
high-performance LAN switching, announced today that the company
has finalized its strategic business agreement with Nortel
Networks, a leading global designer, builder and integrator of
communications products, systems and networks.
Under the terms of the agreement, Nortel Networks has completed
its CDN$9 million equity investment in Plaintree, releasing CDN$4
million that had been held in escrow since the announcement of the
Memorandum of Understanding in June 1998. Nortel Networks has also
exercised its option to license Plaintree's technology for use in
its WAN products, and Plaintree has committed engineers to work
with Nortel Networks on the development of WAN switching products
targeted for the carrier market.
"The Internet phenomenon is fueling the growth of new WAN
networks," said Colin Beaumont, chief executive officer, Plaintree
Systems Inc. "Cooperating with Nortel Networks in this field
provides Plaintree with an opportunity to compete in this
potentially explosive market by adding new features to our
WaveSwitch line of products."
"Our carrier customers are demanding IP-optimized network
solutions," said David Mann, vice-president, technology, Carrier
Packet Networks, for Nortel Networks. "Access to Plaintree's
technologies and resources will accelerate their availability."
About Plaintree Systems
A publicly held company founded in 1988, Plaintree Systems
develops and sells LAN switches, maintaining a reputation for high
quality products and technical support. Headquartered in the
Ottawa region, Plaintree also maintains offices in the US and
Europe. Plaintree is publicly traded in the U.S. on NASDAQ and in
Canada on the TSE.
For more information, visit Plaintree's website at
plaintree.com.
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