<PAGE>
Exhibit 99.1
Contacts:
Anne Louise Palm
Bluetail AB
+46 8692-2200
[email protected]
Kristine Mozes
Stapleton Communications
+01 650-470-0200
[email protected]
Jan Stahlberg
Informations Compagniet
[email protected]
+46 8 660 18 05
Alteon WebSystems to Acquire Bluetail for $152 Million
Sophisticated Application Processing Technology to Enable the Next Step in
Personalized Content Networking
STOCKHOLM, SWEDEN, August 28, 2000 - Alteon WebSystems, Inc., [Nasdaq: ATON]
today announced a definitive agreement to acquire privately-held Bluetail AB, a
Swedish-based Internet startup for approximately US $152 million in a
stock-for-stock shareholder exchange.
Bluetail manufactures and markets content-intelligent traffic management
software for high-volume Web computing environments. Its core technology is a
robust software-processing engine that can identify different types of Web
traffic and process the traffic based on individual customer policies and
application types.
Bluetail technology enables granular traffic prioritization and customized
content manipulation based on each user's unique profile. Personalized services
enhance users' experience and are critical to the rapidly growing wireless Web.
<PAGE>
Bluetail's software will play a key role in Alteon's Webworking framework.
Webworking is a new model for delivering the next wave of Web-based applications
taking advantage of the convergence of intelligent Web switching and Web
computing.
Bluetail's software technology will be incorporated into a suite of a new
Webworking applications developed for Alteon's integrated ServiceDirector (iSD)
platform (see related iSD release: July 17, 2000).
Under terms of the all-stock deal, each Bluetail shareholder will receive .62995
shares of Alteon WebSystems common stock for every share of Bluetail common
stock. Bluetail has issued approximately 1.6 million shares of common stock.
The acquisition of Bluetail, which will be accounted for as a purchase, will
result in non-cash charges for deferred compensation and amortization of
goodwill of approximately $12 million per quarter.
"Bluetail and its technology will give Alteon a time-to-market advantage in
delivering a new class of personalized content-networking capabilities," said
Dominic Orr, president and CEO of Alteon WebSystems.
Bluetail's seasoned team includes over 16 research engineers who have focused on
developing software products for the rapidly escalating content delivery market.
Based in Stockholm, Sweden, Bluetail was founded in January of 1999 and
currently employs a staff of 25. The company is headed by Jan Walerud, president
and CEO. Several Bluetail engineers are credited with the invention of Erlang -
an open-source programming language specialized for distributed systems and used
to develop a variety of different UNIX-based applications. Bluetail's customers
include one of Sweden's largest ISPs.
<PAGE>
About Alteon WebSystems
Alteon WebSystems, Inc., provides next-generation Internet infrastructure
solutions having pioneered the concept of content-intelligent, Layer 4 through 7
Web switching in 1997. The Company's products enable ISPs, hosters and
eBusinesses to intelligently speed content to end users while scaling Web sites
and services to meet the rapid growth of the Internet. Alteon's products include
modular and stackable Web switches, integrated traffic management software and a
line of service delivery products. Alteon's Web switching systems are deployed
in Internet data centers around the world by companies including UUNet, ICG
Communications, Yahoo!, TicketMaster Online, GTE Internet, DLJdirect, DIGEX,
WebTV Networks, Cable & Wireless, NTT and many others. Founded in May of 1996,
Alteon WebSystems employs a staff of over 500 around the world and is publicly
traded on The Nasdaq Stock Market(R) under the symbol "ATON." The company
recently announced that it has agreed to be acquired by Nortel Networks. Visit
Alteon WebSystems on the World Wide Web at http://www.alteonwebsystems.com.
About Bluetail AB
Founded in January 1999 and based in Stockholm, Bluetail AB is a Swedish
Internet startup specializing in advanced Web traffic management applications.
Employing a staff of 25, the Company markets and manufactures a suite of Web
computing software for Internet operators both in Sweden and internationally. To
find out more, visit Bluetail at www.Bluetail.com
SAFE HARBOR
All trademarks are the property of their respective owners. This release may
contain forward-looking statements that are subject to risks and uncertainties.
Factors that could cause actual results to differ materially include, but are
not limited to, general business conditions in the networking equipment
industry, changes in demand for network equipment products of Alteon WebSystems'
customers, the timing and amount or cancellation of orders from Alteon
WebSystems' customers and other risks detailed from time to time in the
company's filings with the Securities and Exchange Commission.
