Newbridge Networks Forms Agreement for Collaboration
Newbridge Maintains Full Access to Vienna Voice Over IP Technology and Forges
Collaborative Development Agreement With Nokia
KANATA, Ontario, December 18, 1998 -- Newbridge Networks (NYSE: NN; TSE: NNC)
today announced it has entered into a collaborative agreement with Nokia Corporation of
Finland to work together in areas of mutual interest, including cooperative sales,
marketing and product development efforts. The agreement will leverage the complementary
strengths of both companies to deliver business-class IP capabilities and services over
broadband ATM wireless networks.
As part of this agreement, Newbridge will tender its shares representing its
approximately 30 percent ownership position in Vienna Systems Corporation to Nokia
Corporation. The transaction values Vienna Systems at approximately Cdn$135 million.
The agreement with Nokia enables Newbridge to strengthen and extend its business
relationships with Vienna Systems under Nokias ownership, including full access to
an expanding Vienna product line, which will continue to be sold through the worldwide
Newbridge sales channel and branded in certain key markets under the Newbridge name.
The collaborative development agreement will also focus on product development to
ensure that the expanding family of IP telephony products is optimized for Newbridge
broadband multi-services ATM networking solutions. This includes undertaking joint
development to optimize IP telephony solutions for broadband wireline and wireless
"Our core business is building carrier class, fully managed multi-services
networks, including scalable, high-quality IP networks for delivering business class IP
VPNs," said Alan Lutz, President and Chief Operating Officer, Newbridge Networks.
"This new arrangement with Nokia is good for Newbridge because it enables us to stay
focused on our core business and to collaborate with Nokia on many new complementary
fronts, including cooperative research and development and sales and marketing. It is
particularly beneficial to both Nokia and Newbridge in that we both will be focused on
selling and marketing an expanding IP telephony product line resulting from Nokias
association with Vienna Systems.
"The sale of Vienna is another sign of the growing dynamism and momentum of the
Newbridge Affiliate program. The proceeds from this transaction give us the ability for
even greater flexibility to invest in additional core Newbridge technology to increase the
depth and breadth of our product offering. The program and our commitment to it will
continue to strengthen."
Newbridge Networks designs, manufactures, markets and services networking solutions to
organizations in more than 100 countries. The Company leverages its relationship with a
growing family of 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.