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EXHIBIT 99.1
NEWS RELEASE [LOGO]
WWW.NORTELNETWORKS.COM
FOR IMMEDIATE RELEASE OCTOBER 5, 2000
For more information:
Business Media: Investment Analysts:
David Chamberlin Nortel Networks
Nortel Networks 905-863-6049
972-685-4648 888-901-7286
[email protected] [email protected]
NORTEL NETWORKS COMPLETES ACQUISITION OF ALTEON WEBSYSTEMS
CREATES CONTENT NETWORKING BUSINESS TO BRING NEW LEVELS OF SPEED, INTELLIGENCE,
PERSONALIZATION TO INTERNET
BOSTON - Nortel Networks* Corporation [NYSE/TSE: NT] today announced that it has
completed the acquisition of Alteon* WebSystems [NASDAQ: ATON], the leader in
content networking. Alteon WebSystems stockholders approved the acquisition at
their annual meeting held October 4, 2000.
The acquisition was effected by the merger of a wholly owned subsidiary of
Nortel Networks with and into Alteon WebSystems. As a result of the merger, each
outstanding share of Alteon WebSystems common stock was converted into a right
to receive 1.83148 Nortel Networks common shares. Alteon WebSystems common stock
will no longer trade on the NASDAQ Stock Market. Nortel Networks issued
approximately 82 million common shares in connection with the merger.
"This is a major milestone in our efforts to bring a new level of intelligence
and personalization to the Internet," said Clarence Chandran, chief operating
officer, Nortel Networks. "The high-performance Internet will be able to
prioritize and speed information to its destination by looking beyond the IP
address and into the content sent by any given user. Alteon WebSystems also
broadens our capabilities for application service providers, Internet data
centers, portals and Web hosters."
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"With the acquisition complete, we are ready to move forward at Web speed to
deliver high-performance content delivery services that exploit the
high-performance Internet and create new profit opportunities for service
providers," said Dominic Orr, president and chief executive officer, Alteon
WebSystems. "With our combined expertise and leadership, we are uniquely
positioned to provide solutions for our customers."
With this announcement, Dominic Orr assumes the role of president, Content
Networking and will report to Anil Khatod, president, Global Internet Solutions.
The Content Networking business will also include Nortel Networks Shasta* IP
Services and other resources associated with the business. Content Networking
will also be able to accelerate the broader Nortel Networks value proposition
for moving content seamlessly and rapidly across high-performance Optical
Internet and 3G wireless networks, and Internet Data Centers.
Nortel Networks Content Networking will span the Optical Internet, Wireless
Internet, Local Internet and eBusiness. As a result, service providers, Internet
data centers, Web hosters and portals will be able to improve the reliability,
speed and profitability of the sites and services they offer, as well as tailor
their offerings based on individual user needs. Content Networking will also
enable enterprises to more easily manage, scale and optimize the infrastructure
required to deliver mission-critical eBusiness capabilities.
The new business unit provides Nortel Networks customers with industry leading
content networking capabilities to deliver robust, reliable, high-performance
Web server infrastructure. With intelligent networking, ASPs can increase Web
traffic response time, enabling low latency, maximizing price/performance under
load, and allowing for addition of future, value-added services. It can also
enable eBusiness and eContent sites to enhance reliability and performance of
their Web server data centers.
Alteon WebSystems stockholders who held their shares directly will receive
notice in the mail describing the process to exchange their Alteon WebSystems
common stock certificates for Nortel Networks common share certificates. Alteon
WebSystems stockholders whose shares are held through intermediaries such as
banks or brokers will receive information about their holdings from those
institutions.
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Alteon WebSystems pioneered the concept of Web switching and is a leading
provider of next generation Internet infrastructure solutions designed to enable
businesses to meet the demands resulting from the rapid growth of eBusiness and
the Internet. Alteon WebSystems Web data center products - including Web
switches, service delivery platforms, server adapters and traffic management
software - are optimized to meet the specific challenges of managing Web
traffic, and to provide the high performance and availability of leading
networking infrastructure solutions. Founded in May of 1996, Alteon WebSystems
employs a staff of over 600 around the world.
Nortel Networks is a global Internet and communications leader with capabilities
spanning Optical, Wireless, Local Internet and eBusiness. The Company had 1999
U.S. GAAP revenues of US$21.3 billion and serves carrier, service provider and
enterprise customers globally. Today, Nortel Networks is creating a
high-performance Internet that is more reliable and faster than ever before. It
is redefining the economics and quality of networking and the Internet,
promising a new era of collaboration, communications and commerce. Visit us at
www.nortelnetworks.com.
Certain information included in this press release is forward-looking and is
subject to important risks and uncertainties. The results or events predicted in
these statements may differ materially from actual results or events. Factors
which could cause results or events to differ from current expectations include,
among other things: the impact of price and product competition; the dependence
on new product development; the impact of rapid technological and market change;
the ability of Nortel Networks to make acquisitions and/or integrate the
operations and technologies of acquired businesses in an effective manner;
general industry and market conditions and growth rates; international growth
and global economic conditions, particularly in emerging markets and including
interest rate and currency exchange rate fluctuations; the impact of
consolidations in the telecommunications industry, the uncertainties of the
Internet; stock market volatility; the ability of Nortel Networks to recruit and
retain qualified employees; and the impact of increased provision of customer
financing by Nortel Networks. For additional information with respect to certain
of these and other factors, see the reports filed by Nortel Networks with the
United States Securities and Exchange Commission. Nortel Networks disclaims any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
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*Nortel Networks, the Nortel Networks logo, the Globemark, Alteon and Shasta are
trademarks of Nortel Networks.
