Cisco Chooses Mitel Digital Switching Integrated Circuits to Fuel High-Performance Voice and Data Convergence: Integrated circuits deliver superior quality voice to the Internet.

Business Editors

OTTAWA--(BUSINESS WIRE)--April 17, 2000

Mitel Semiconductor, a division of Mitel Corporation (TSE:MLT.) (NYSE:MLT) (LSE:MLT.L) , today announced that Cisco Systems (Cisco) has chosen Mitel's MT90863 and MT90826 integrated circuits (ICs) to fuel the convergence of voice and data signals in emerging data access products. The digital switching ICs integrate voice, data and video Time Division Multiplexed (TDM) traffic into applications on Cisco access concentrators, routers, gateways and switching platforms.

"Mitel Semiconductor's IC solutions are already widely used in our data networking systems," said Trevor Schulze, hardware engineering manager with Cisco's Remote Access Business Unit. "Based on Mitel's proven track record and leading-edge semiconductor technology for voice and data applications, we are integrating their digital switching ICs into our next-generation convergence products."

The MT90863 and MT90826, announced in March 1999, are successful additions to Mitel Semiconductor's growing portfolio of WAN Internetworking components - one of the largest and fastest-growing segments of the division's business. Combining advanced mixed-signal design capabilities with a comprehensive understanding of industry standards, Mitel Semiconductor's ICs enable vendors to develop WAN solutions that bridge from today's installed base to emerging networks, and support the transition to packet-based applications such as Voice over ATM and Voice over IP (VoIP). Several industry leaders are currently integrating Mitel's WAN Internetworking ICs into a range of new platforms for data networking and WAN access systems.

According to International Data Corporation, the market for remote access systems is increasing rapidly, from US $3.8 billion today to an estimated US $7.7 billion by 2003*. The growing number of devices connected to the Internet is forcing Internet Service Providers (ISPs) to concentrate thousands of calls through network access systems, while maintaining the high performance and reliability that consumers demand.

To deliver large numbers of high-quality calls at reduced cost, vendors of carrier-class remote access systems require specialized Internetworking ICs. Mitel Semiconductor's MT90863 and MT90826 digital switching ICs are designed to fulfill these requirements. The high-capacity devices can concentrate hundreds of Constant Bit Rate (CBR) channels while achieving performance and fast implementation of medium to large carrier-class remote access systems.

"Mitel Semiconductor's digital switch devices are renowned for their integration of two very important elements - complex functionality and simplicity of use," said Mauricio Peres, director of strategic marketing, Mitel Semiconductor. "These two basic elements have established Mitel Semiconductor as the leader in TDM switching components in the merchant semiconductor market. Our strategy for success in TDM switching is to provide leading Quality of Service (QoS), a critical component in supporting the new generation of multi-service networks."

Advanced voice and data technology

For data access equipment, central office equipment, or large PBX systems, the award-winning MT90826 Quad Digital Switch (QDX) provides a low-cost and low-power timeslot interchange solution for TDM traffic. Power consumption is minimized, because this product operates at 3.3V with 5V tolerant I/O's. With a non-blocking 4,096-channel capacity, the MT90826 suits a wide variety of applications. Mitel Semiconductor was the first to introduce a quad digital switching IC supporting rate conversion and data rates of up to 16.384 Mb/s.

Designed for the emerging Internet access market and WAN networking products, Mitel Semiconductor's MT90863 Rate Conversion Digital Switch (RCDX) is a specialized 3V timeslot interchange that manages and switches multi-rate voice, data and video traffic. Out of a total of 2,048 channels on the backplane, users can add or drop 512 channels into the application streams to accommodate a broad range of interfaces such as T1/E1, DSP, fax, and T3/E3 access line cards. By supporting multi-rate traffic and higher bandwidths, the RCDX provides bandwidth management capability and reduces system cost and form factor by minimizing the size of interconnects and backplanes.

By using an architecture that is common to other digital switches in Mitel Semiconductor's switch family, Mitel substantially eases software development. Customers will find it easy to make software upgrades from earlier switches as the architecture is designed to support the evolution to future switching products. To further increase flexibility, both products are compatible to ST-BUS & GCI standards. The MT90863 can also be used in H.100, SCSA, MVIP(tm) and H-MVIP environments.

Proven track record for design support and implementation

Cisco chose Mitel's MT90863 and MT90826 in part because of Mitel Semiconductor's proven track record in design support. The chips are supported through Mitel Semiconductor's dedicated global design support team, which aids system implementation though test and applications knowledge.

About Mitel

Mitel Semiconductor specializes in connectivity solutions for the communications and medical industries with a product range that includes components for both wired and wireless networks; microelectronics for enabling the convergence of voice and data; optoelectronic devices for high-speed Internet systems; and applications-specific integrated circuits (ASICs) for medical applications such as pacemakers and hearing aids.

Mitel is a growing global provider of converging voice and data systems and applications, and specialty semiconductors for the communications industry. The company has annual revenues of more than CDN $1.3 billion and employs some 6,000 people worldwide.

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and assumptions include, among others, the risks discussed in documents filed by the Company with the Securities and Exchange Commission. Investors are encouraged to consider the risks detailed in those filings.

*International Data Corporation, #19358, Volume 1, "Remote Access and VoIP-Enabled RAS Market Review and Forecast, 1996 to 2003," by Brad Baldwin, June 1999.