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To: pat mudge who wrote (8395)	12/9/1998 10:26:00 AM
From: Ian@SI	Respond to of 18016

Another slant on the Cambrian Sale (Haven't seen this posted yet, my apologies if I missed it...) +++++++++++++++++++ Wednesday, December 9, 1998 Nortel to buy Cambrian Systems for up to $300M US TORONTO (CP) -- Nortel Networks is paying up to $300 million US cash ($460 million Cdn) to buy Cambrian Systems Corp. of Kanata, Ont., and its high-speed Internet technology. Newbridge Networks owns 40 per cent of Cambrian, Newbridge chairman Terry Matthews about 25 per cent and dozens of smaller shareholders the rest. Nortel Networks, a division of giant Northern Telecom, said today a portion of the purchase price will be contingent on Cambrian Systems achieving certain business objectives. The acquisition, expected to close within 30 days, comes three months after the acquisition of data networking leader Bay Networks. "This is another investment in our strategy to usher in a new era of networking," said John Roth, vice-chairman and chief executive of Nortel Networks. "With the acquisition of Cambrian Systems, we're speeding up the on-ramps to the Internet backbone. By eliminating the bottleneck between metropolitan networks and the high-speed fibre-optic backbone, we will enable higher speeds and higher reliability with bigger bandwidth and lower-cost networking." Nortel Networks will combine its optical technology with Cambrian Systems' OPTera product line. The new technology provides cost benefits as high as 30 per cent, Nortel said. Cambrian Systems, with about 170 employees primarily based in Canada, will continue to be based in Kanata, with additional resources from Nortel Networks.

To: pat mudge who wrote (8395)	12/9/1998 10:32:00 AM
From: gbh	Read Replies (1) \| Respond to of 18016

Pat, well it could be a couple of things. Maybe Terry just wanted to have a very merry Christmas bonus (he owns 25%). Or maybe, a certain company, which doesn't need Cambrian DWDM, gave him a little nudge, before a much larger Christmas present. :) Gary

To: pat mudge who wrote (8395)	12/9/1998 12:58:00 PM
From: Dennis R. Duke	Read Replies (1) \| Respond to of 18016

ASND's Mory said at H&Q earlier this year that ASND will not partner with any vendor in the wave multiplexing area because they did not want to limit themselves to one technology. NN maybe executing the same strategy, but with a twist - they get to keep the relationship with Cambrian after the NT deal and have, no doubt, supply agreements and technology available to them thus far and will be keeping it in their product offerings. That is very, very important. But the motivation for the deal is interesting. It to me is a perlude to the expected LU investment and alliance. LU has a similar set of products, that Ciena's thread has called weak at best, and vaporwave at worst. What if LU wants NN to better its wave multiplexing products, incorporating them into NN ATM switches and networking gear, and that is what got this to occur to NN and Cambrian today. Still holding, bomb sites ready for doors to open. Or should I say track shoes on and legs stretched. Later, (-8 Dennis 8-)