Gandalf, a Division of Mitel, Announces Modular Multiprotocol VPN Router.

ATLANTA--(BUSINESS WIRE)--Oct. 21, 1998--Mitel Corporation's (NYSE:MLT) (TSE:MLT.) (ME:MLT.) (LSE:MLT.L) XpressConnect features industry leading compression and encryption, enabling faster more reliable data throughput at a lower cost.

Gandalf, a division of Mitel, today announced XpressConnect(r), a high performing, secure network access solution for small and medium size business applications for Virtual Private Networking. The XpressConnect features Gandalf's industry leading data compression and encryption, providing reliable, fast and secure networking solutions to or from virtually any location.

The XpressConnect will be featured at Networld + Interop, October 21-23 Booth No. 1853.

The XpressConnect is a modular multi-protocol router that offers flexible, high-performance internetworking between office locations, the Internet and local LAN's. It supports up to two ISDN BRI ports which enables users to add bandwidth as needed without adding the cost of dedicated lease lines or having to upgrade to a more expensive unit.

High Performance

In addition to support for dual ISDN BRI ports, the Gandalf patented data compression of 8:1 enables the XpressConnect to support up to 2Mbps of throughput "on demand" over ISDN connections or up to 4Mbps of throughput over multiple T1/E1 links. The XpressConnect also supports Stacker LZS data compression for compatibility with other devices. Multiple links to a common destination are load balanced with packet fragmentation to improve bandwidth and decrease latency for applications such as real time video on demand.

The design and performance level of the XpressConnect was developed with future access technologies in mind. This enables the installation of the product using ISDN or T1 today and the option to add ADSL or SDSL in the future.

The XpressConnect supports two simultaneous LAN segments. For example, a user can have one segment that hosts a Web site for e-mail and electronic commerce, while also operating another link for the existing corporate LAN. This increases both accessibility and productivity.

"With the changing work environment and job growth coming from small and medium size businesses, these organizations need flexible open ended solutions to increase productivity," said Rod Yaehne, general manager of Gandalf, a division of Mitel Corporation. "The XpressConnect offers the highest performing, reliable, and secure network access solution today, with plteway for up to 256 local PC's based on a single IP network address to reduce ISP costs for getting users on the Internet. The XpressConnect can accept a dynamic IP address either via DHCP client or IPCP. It supports a second LAN segment option to allow both a secure and an open LAN segment to the Internet. Full SNMP support and XpressView, a Windows based management tool, are packaged with the XpressConnect to simplify network administration.

Secure Information

Enhanced security is provided via XpressGuard, Gandalf's combined compression and encryption algorithm, which provides the highest level of security without performance degradation. The Xpress product line also supports CLID, PAP, CHAP, RADIUS, TACACS, Security Dynamics, AssureNet, and private key encryption. Security is provided at the user level, link level and central concentrator level.

Pricing and Availability

Available immediately, the XpressConnect is priced from $1,595 to $2,195 U.S., and varies depending on customer configuration and network requirements.

About Mitel

Mitel Corporation (NYSE:MLT) (TSE:MLT) designs, manufactures and markets systems, sub-systems and microelectronic components for sale to world markets in the telephony, computer telephony integration (CTI) and communications industries. Its Gandalf division designs and manufactures remote access solutions, providing location-independent access to enterprise LAN and PBX systems. The Company's products include voice communications systems; public switching systems; network enhancement and gateway products; CTI systems and applications; client/server telecom products; custom silicon wafers, integrated and hybrid circuits, and optoelectronic devices. Mitel's leadership strategy is centered on advancing people-to-people communications in an open, distributed and standards-based environment.

For more information on Mitel Corporation, visit our Web site at http://www.mitel.com. For more information on Gandalf products, visit the Web site at http://www.gandalf.com.

Note to editors: M Mitel (design) and Mitel are registered trademarks of Mitel Corporation. All other names and products referenced herein are trademarks or registered trademarks of their respective companies.