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To: Mark Duper who wrote (39924)	3/18/1998 6:29:00 PM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 61433

Nortel buys U.S. start-up firm for $290 million Reuters Story - March 18, 1998 18:09 %ELC %SP500 %CA %US %TEL NTL.TO NT V%REUTER P%RTR (All figures in U.S. dollars unless otherwise stated) TORONTO, March 18 (Reuters) - Northern Telecom Ltd. said on Wednesday it acquired U.S. start-up Aptis Communications Inc. for about $290 million in Nortel stock and cash in a bid to increase its Internet product line. Nortel, based in Brampton, Ontario, is the world's sixth largest telecommunications equipment maker. It plans to merge Chelmsford, Mass.-based Aptis, which provides access switches to network service providers, carriers and Internet service providers, with one of its existing wholly-owned units. Under the arrangement, Aptis security holders would receive Nortel common shares, cash or a combination of both. Nortel said part of the purchase price depends on the achievement of unnamed milestone events. The deal, expected to close in 1998's second quarter, is subject to regulatory approval and other conditions, Nortel said. In a press release the company said that "with this acquisition, Nortel drives toward a leadership position in the access and virtual private networks arena and demonstrates its commitment to build the New Internet -- a faster, more reliable, more profitable Internet." John Drolet, a Yorkton Securities analyst, said this latest acquistion is part of Nortel's thrust to expand its Internet product offerings. The company is currently working on products to help businesses cope with overloaded telephone lines as more and more people use the Internet for longer periods of time. Nortel has said it will acquire the technology if it cannot develop it, Drolet said. "All of this is necessary for the rapid growth of the Internet." Nortel shares fell C10 cents to C$86.70 on the Toronto Stock Exchange but rose 19 cents to $61.31 on the New York Stock Exchange. ($1=$1.42 Canadian)