SR Telecom Adds 3G (EV-DO) Technology to Portfolio -
Will serve identified opportunities for fixed applications in existing customer base
1/16/03
MONTREAL, Jan 16, 2003 (CNW Telbec via COMTEX) -- SR Telecom(TM) Inc. (TSX: SRX), the world leader in point-to-multipoint fixed wireless access solutions, today announced an acquisition that positions it to capitalize on identified opportunities for fixed applications in its core customer base. The product does not require additional development prior to its first commercial sale and SR Telecom intends to commercialize the product through its existing global sales network.
The Company has reached an agreement to acquire certain assets of Mergy Inc., from the assignee of the assets. SR Telecom will pay US $635,000 for the assets of Mergy, including the intellectual property associated with their 3G- based product line. SR Telecom has also entered into a binding Memorandum of Understanding with Axio Wireless Inc., providing for software licensing and support services.
This acquisition adds standards-based, high-performance 3G broadband capabilities to SR Telecom's industry-leading portfolio of fixed wireless access solutions. The acquisition of broadband wireless technology is consistent with SR Telecom's growth strategy of focusing on strengthening its market position as the telecommunication industry's preferred supplier for fixed wireless access solutions.
"The addition of 3G broadband wireless technology to SR Telecom's industry-leading last-mile wireless access solutions allows us to make high- speed wireless a reality for homes and businesses everywhere. This breakthrough product will create significant value for our customers, shareholders and employees," said Pierre St-Arnaud, SR Telecom President and Chief Executive Officer.
"Combined with our industry leadership in the provisioning of fixed wireless access systems, our global sales network, and our proven network planning, deployment and support capabilities, this acquisition positions us to offer the industry's most comprehensive portfolio of fixed broadband wireless solutions," said Mr. St-Arnaud.
"This broadband solution offers service providers a reliable platform for the seamless delivery of a wide variety of IP-based services and applications," said Mr. St-Arnaud. "We have identified considerable market opportunities with our core customer base for this technology, primarily in fixed applications."
The acquired product's 3G Wireless Internet service capability was successfully trialed by utilities in the United States and Korea. It is based on a 3G CDMA standard that delivers a peak data rate of 2.4 Mbps using just 1.25 MHz of spectrum. It provides wireless Internet services with efficient spectrum usage and increased capacity, enabling the delivery of Internet data at speeds comparable to current cable and DSL modems.
The transaction, which is expected to close in the next 30 days, is subject to detailed documentation containing terms and conditions customary in transactions of this nature.
ABOUT SR TELECOM
SR Telecom is a world leader and innovator in Point-to-Multipoint Wireless Access solutions, which include equipment, network planning, project management, installation and maintenance services. Its products, which are used in over 110 countries, are among the most advanced and reliable PMP wireless telecommunications systems available today. Serving telecom operators worldwide, SR Telecom's fixed wireless solutions provide high-quality voice and data for applications ranging from carrier class telephone service to high- speed Internet access.
FORWARD-LOOKING STATEMENTS
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
SR Telecom and the SR Telecom logo are trademarks of SR Telecom Inc. All rights reserved 2003. All other trademarks are property of their owners.
VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION: newswire.ca
For further information: David Adams, Vice-President, Finance and CFO, (514) 335-4035, David_Adams(at)srtelecom.com; Paul Goyette, Director, Communications, (514) 335-2429 ext. 4361, Paul_Goyette(at)srtelecom.com; www.srtelecom.com; Scott Lawrence, Maison Brison, (514) 731-0000, scott(at)maisonbrison.com
News release via Canada NewsWire, Montreal 514-878-2520
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