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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: zbyslaw owczarczyk who wrote (6355)	9/3/1998 4:15:00 PM
From: MD Bryant	Read Replies (1) \| Respond to of 18016

Newbridge Networks Announces Intent to Acquire Castelton Network Systems KANATA, ONTARIO--Newbridge Affiliate's Technology Consolidates Voice, Fax and Data Over Frame Relay, Asynchronous Transfer Mode (ATM) and Internet Protocol (IP) Networks Newbridge Networks today announced it has signed a letter of intent to acquire Castleton Network Systems Corporation, a Newbridge(r) Affiliate and a developer of packet voice technology and innovative high performance network access products. The acquisition of Castleton will provide Newbridge with a significant addition to its own product and service offerings in the area of voice, fax and data consolidation for enterprise wide area networks (WANs). "Today's announcement enables Newbridge to achieve two simultaneous goals. First we can absorb and further leverage Castleton's existing technology and products. Secondly we gain access to a talented and motivated development team that can be deployed on current and future projects to take advantage of their skills and experience," said Terence Matthews, Chairman and Chief Executive Officer, Newbridge Networks. "The ability to seamlessly integrate into the Newbridge solution offering key technologies developed by Castleton enables us to deliver powerful new products and product enhancements across our family of networking products." The decision to acquire Castleton follows a Memorandum of Understanding (MOU) entered into between the two companies earlier this year whereby the two companies formed a strategic partnership to develop product solutions in advanced voice and enterprise access markets. Castleton's AssuredVoice(tm) packet voice technology is deployed in next generation packet access products. It provides for consolidated voice, fax and data over frame relay, asynchronous transfer mode (ATM) and Internet protocol (IP) networks. Through its adaptive features including jitter management, silence suppression, traffic management, automatic gain control and echo cancellation, AssuredVoice delivers business-quality voice with high reliability even under changing or adverse network conditions. Newbridge Networks (NYSE: NN; TSE: NNC) designs, manufactures, markets and services networking solutions to organizations in more than 100 countries. The Company leverages its relationship with 16 Newbridge Affiliate companies and strategic alliances with Siemens and 3Com Corporation to deliver seamless, end-to-end solutions. Newbridge customers include the world's 300 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. Castleton Network Systems Corporation is headquartered in Vancouver with offices in Kanata and Toronto, Canada; Newport, UK, and Herndon, Virginia, USA. Newbridge, logo are registered trademarks of Newbridge Networks Corporation. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Newbridge Networks Corporation John Lawlor Financial Analyst contact (613) 591-3600 E-Mail: jlawlor@newbridge.com or Newbridge Networks Corporation Paul Goyette Media contact (613) 591-3600 E-Mail: pgoyette@newbridge.com

To: zbyslaw owczarczyk who wrote (6355)	9/3/1998 9:20:00 PM
From: Doug	Read Replies (1) \| Respond to of 18016

Z.O: While you have been keeping tabs on Q2 earnings, I have been researching the markets as an entity. Generally the direction of the Financial Index points to where the DOW is headed.This Index has now lost near 20% and is currently still headed south. If this decline extends into Oct. it will signal a traditional bear mkt. In such markets, predictions based on past valuations such as P/E's become redundant. Price drops in such markets are quite large. Based on past Bears, the levels to which the S&P can drop is as follows: a: Like 87 crash : 750 b: Like 73-74 Bear : 580 c: Like Nikei Bear : 420 d: Like 29 Crash : 120 I do not think the Fed will allow the S&P to drop below 750. At that level, he is likely to cut interest rates to support the market and prevent a world recession. If we accept the floor at 750, then it is more than likely that we will see us first making a double bottom i.e a retest of the low reached on Monday. If the Bank Index continues its fear slide, that test should come earlier than later. Once the test is made and it holds up with a strong rebound together with the Bank Index, I would say that we can forget the general scenario and then concentrate on NN in isolation. In brief,our main concern for the near term should be the Bank Index and not NN. I do believe that the media is being used to promote fear and liquidity on concerns of heavy trading losses and loss of income due to the so called collapse of Capital markets. In reality, the losses are small in relation to assets. As an example BAC had a trading loss in Russia of $200m. This amounts to a reduction of 14c from its $1.25 quarterly earnings and assets of over $45b. Yet BAC got creamed 30% of its top. Whilst Networking news influences the price movements of NN, that price is multiplexed on a main Market wave. If the main carrier wave has a negative amplitude, it can take NN lower. As we are now nearing a main wave nodal point, I hope others will join in discussing its influence.