Cabletron Systems Finalizes Sale of FlowPoint Division to Efficient Networks.Business Editors ROCHESTER, N.H.--(BUSINESS WIRE)--Dec. 20, 1999 Cabletron Systems (NYSE NYSE See: New York Stock Exchange : CS) today announced it has completed the sale of its FlowPoint subsidiary to Efficient Networks. Under terms of the agreement announced on November 22, 1999, Efficient has paid 13.5 million shares for the FlowPoint subsidiary, reflecting a current market value of approximately $1 billion. Cabletron is now the largest shareholder in Efficient Networks. Further, Cabletron and Efficient have entered into a reseller agreement under Cabletron will resell both the FlowPoint and Efficient product lines. "In this transaction Cabletron both increased shareholder value by selling a non-core business as well as retaining access to the FlowPoint product line so that we can continue to participate in the explosive DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary market," said Piyush Patel, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cabletron Systems. "We look forward to a productive relationship with Efficient Networks." About Cabletron Systems Cabletron Systems, a premier provider of world-class networking solutions, delivers reliable network access and communications to millions of people worldwide. With scaleable products designed for Global 1000 enterprise networks, service providers and small businesses, Cabletron is the e-business communications specialist in the Internet economy The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price. . Listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. for more than a decade under the symbol CS, Cabletron is an S&P 500 index company. Cabletron's web site can be reached on the Internet at http://www.cabletron.com About Efficient Networks Efficient Networks, Inc. is a leading, independent supplier of DSL access products for the customer premises. The company furnishes service providers and small to mid sized businesses with its SpeedStream DSL CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment product line, which includes a suite of external and internal routers and modems all designed for simple, rapid installation and seamless compatibility. As a recognized worldwide leader in the DSL market, Efficient Networks is a member of the ATM Forum and the ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line Forum. With headquarters in Dallas, Texas, Efficient Networks has sales and support offices throughout the United States, and in Amsterdam and Singapore. For more information, see Efficient's World Wide Web home page at www.efficient.com |
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