(MLT-MLT.PR.A) Mitel Modernizes Its Bromont Semiconductor Plant to Meet Growing Demand.

BROMONT, Ontario--(BUSINESS WIRE)--Feb. 8, 1996--MITEL CORPORATION (TSE, ME: MLT MLT.PR.A ) MITEL CORPORATION, a Canadian supplier of communications solutions, has confirmed that it intends this year to modernize and expand the production capacity of its semiconductor plant in Bromont, Quebec, to meet the growing world demand for its integrated circuits.

The Bromont plant is the only one of its kind in Quebec. It manufactures semiconductors on 100-mm diameter silicon wafers at the rate of 2,400 wafers per week, which represents the current capacity of the plant. Mitel-Bromont presently employs 270 people.

In a first phase, the plant's capacity will be increased from 2,400 to 3,400 100-mm wafers per week for completion in March 1996 in order to satisfy the heavy demand for Mitel's integrated circuits around the world. In addition, a 0.8-micron technology will be introduced, which will provide the means to manufacture new high-performance integrated circuits by September 1996. The first phase investments will total approximately $10 million.

In a second phase, Mitel intends to convert its production line from 100-mm to 150-mm silicon wafers. With this conversion, the Bromont plant would be able to double its production capacity to attain the equivalent of 6,800 100-mm wafers per week, while at the same time ensuring the viability and the growth of its operations into the next decade. Preliminary site preparation work is projected to begin in February 1996 and the additional 150-mm wafer capacity would be available in September 1997.

This second phase would necessitate investments in the order of $34 million. Mitel is currently having discussions with various parties to complete the financing of the project.

The second phase investments, which would create 60 additional jobs at Bromont during the conversion period and 30 permanent positions afterward, would ensure that Mitel's Semiconductor Division is adequately supplied to satisfy world demand for its integrated circuits and thereby maintain the strong sales growth that the Division has enjoyed in recent years.

Mitel-Bromont manufactures integrated circuits on silicon wafers using CMOS technology especially adapted to combined digital-analog circuits. Mitel-Bromont is the primary supplier of wafers for Mitel's Semiconductor Division. It also subcontracts its manufacturing services to over 25 clients in North America and Europe.

Mitel Corporation is an international telecommunications solutions supplier, providing customer premises equipment, semiconductors, public switching systems, network enhancement and gateway products, and systems development software components. The Company is active in major growth markets such as computer telephony integration and emerging technology systems. Mitel is committed to advancing people-to-people communications in an open and distributed environment.

CONTACT: Mitel Corporation

Ian Chadsey, [phone], ext. 4088

Director, Corporate Affairs

Ian_ Chadseyatmitel.com