Applied Digital Access reaches agreement with MPR Teltech to acquire assets of the Special Services Network Division.

SAN DIEGO--(BUSINESS WIRE)--July 11, 1996--Applied Digital Access Inc. (NASDAQ:ADAX) and MPR Teltech Ltd. (MPR), a subsidiary of BC TELECOM Inc., Thursday announced the execution of a definitive agreement under which Applied Digital Access (ADA) will acquire certain assets of MPR that are part of MPR's operating unit commonly known as the Special Services Network division (SSN).

ADA and its Canadian subsidiary, ADA Canada Inc. (ADA-Canada), will acquire these assets for $4.2 million (U.S.) in cash and 150,000 shares of ADA common stock. The acquisition is expected to be completed on July 15, 1996. ADA expects to take a charge in the third quarter for purchased research and development related to the asset acquisition.

SSN is an operations systems software development group with expertise in development of network management systems for public carriers. SSN developed operations system software for Prism Systems Ltd., a joint venture of Northern Telecom (Nortel) and BC TELECOM.

Nortel subsequently acquired BC TELECOM's interest in November 1994 and repositioned it with Northern Telecom Network Services Management division in December 1995.

SSN will become the British Columbia Group (BCG) of ADA-Canada developing network performance management operations systems software products, and will continue to develop operations systems software for Nortel.

"SSN's software development expertise will strengthen our capability in operations systems development, which we initiated in February 1996 with the acquisition of certain assets of Applied Computing Devices," said Peter P. Savage, president and CEO of ADA.

"We are pleased to add the capabilities and experience of the people of SSN to ADA. We're also pleased to establish ADA-Canada in conjunction with this acquisition, and to welcome Nortel as a customer of ADA."

ADA also announced that in connection with the closing of the SSN transaction, it expects to license certain technology from Nortel for Network Performance Management applications.

Applied Digital Access is a leading provider of Network Performance Management products that include systems, software and services used by telephone companies to manage the quality, performance, availability and reliability of their networks.

These products enable telephone companies to improve quality of service, increase productivity and lower operating expenses. The company has headquarters in San Diego.

MPR Teltech of Vancouver, B.C., is a supplier of high-tech communications products, systems and services for business and industry. It is a wholly owned subsidiary of BC TELECOM, whose BC TEL subsidiary is Canada's second-largest telecommunications company.

CONTACT: Applied Digital Access Inc., San Diego

Peter P. Savage/James Keefe, 619/623-2200

619/623-2208 (fax)

or

The Townsend Agency

Susan Eppel, 619/457-4888

619/453-7010 (fax)