Mitel Launches Family of VoIP Switching Chips for Local Area Networks.

Business Editors

OTTAWA--(BUSINESS WIRE)--Sept. 25, 2000

MITEL(TSE:MLT.) (NYSE:MLT)(LSE:MLT.L)

First Products From Vertex Networks Acquisition Combine With Mitel IP Phone Chipset to Provide Complete Enterprise Packet Switching Solution

Mitel Semiconductor, a division of Mitel Corporation (NYSE:MLT)(TSE:MLT.), today announced a family of Voice over Internet Protocol (VoIP) switching ICs that improve Quality of Service (QoS) in Local Area Networks (LANs).

The VTX2600 consists of three single-chip VoIP switches that support the high bandwidth, high QoS requirements of voice, video and data traffic in Ethernet LANs. Mitel is interfacing the new VoIP switches with its IP telephone chipset, demonstrating a complete VoIP solution at Networld + Interop in Atlanta this week.

The VoIP switching chips were designed by Vertex Networks, Inc. (now Mitel Semiconductor VN. Inc.), which was acquired by Mitel in July 2000 to bring critical packet switching capability to the company's portfolio of complete broadband connectivity solutions.

"The ability to supply complete packet-switching solutions, is critical to realizing the time-to-market and price points demanded of next-generation multi-service network equipment," said Tim Thompson, director of marketing, Mitel Semiconductor VN. "Our new switching family combines industry-leading hardware integration and software that allows us to support true VoIP Quality of Service switching from the desktop through the wiring closet to the Enterprise backbone network."

The VoIP switches each integrate up to twenty-four 10/100 and two 10/100/1000 Gigabit Ethernet ports. The family of devices receive, prioritize and forward packets of voice, video and data at wire-speed simultaneously over all 24 ports. All three switches are based on Vertex's proven CoSMOS (Class of Service) architecture, which allows the chips to support over 900 concurrent voice sessions. Up to 32 switches can be stacked to support a range of customer-defined scalability and bandwidth requirements.

Proven QoS architecture supports high-quality voice in Enterprise VoIP systems The IDC estimates that IP port shipments will rise from 114.9 million in 2001 to 169.8 million by 2003, as demand rises for Internet-based voice and data services such as VoIP.* To satisfy customer requirements, service providers will demand equipment that ensures QoS through predictable and reliable voice and data delivery.

In VoIP systems, QoS is degraded when more voice and data traffic is received than can be accommodated by outgoing ports. Each VTX2600 switching chip optimizes packet prioritization by using four to eight transmission queues for each output port, compared to the two queues offered by competitive solutions. Minimal delay in voice signals is achieved by managing traffic using a combination of prioritization schemes: Weighted Fair Queuing (WFQ), Bounded Delay, and Weighted Random Early Detection/Drop (WRED).

WRED is a proven technique applied by Vertex that handles buffer memory congestion during peak traffic congestion. It uses the Layer 2 VLAN tag field or the Layer 3 IP TOS/DS field, and the Layer 4 TCP and UDP port numbers for packet prioritization to drop non-critical packets from the data stream. This guarantees a delay of less than 1ms for voice traffic, while allowing data traffic to be intermixed on each port.

Family supports managed and unmanaged Layer 2 switching requirements The VTX2600 family consists of three Layer 2 VoIP switches that meet a range of equipment requirements for VoIP workgroup switches, fully managed voice and data stackable wiring closet switches, lightly managed standalone switches, and unmanaged workgroup switches.

      -   The VTX2604 is a single-chip managed switch that integrates
        twenty-four 10/100 Ethernet ports and two 10/100/1000 Gigabit
        Ethernet ports. The device provides 6.4 Gbps non-blocking
        throughput bandwidth and achieves 9.52 Mpps full wire-speed
        forwarding rate. The VTX2604 integrates two 64-bit memory
        buses at 125 Mhz. With Gigabit port stacking mode, the device
        allows 2 Gbps links between stacked switches.

      -   The VTX2603 is a single-chip unmanaged IP switch with 24
        10/100 Ethernet ports and two 10/100/1000 Gigabit Ethernet
        ports. The device provides 4.4 Gbps non-blocking throughput
        bandwidth and achieves 6.57 Mpps full wire-speed forwarding
        rate. The VTX2603 integrates two 64-bit memory buses at 100
        Mhz. The chip supports simple stacking configurations without
        software, and can load configuration information from external
        serial EEPROM at power-up.

      -   The VTX2602 is a managed switch with 24 10/100 Ethernet ports
        in a single chip. The device provides 3 Gbps non-blocking
        throughout bandwidth with a 3.57 Mpps full wire-speed
        forwarding rate, and integrates a 64-bit memory bus at 100Mhz.

All three devices accommodate up to 64k MAC addresses, provide port-based and ID tagged VLANs, and support up to 255 simultaneous IP multicast groups. The 10/100 Ethernet ports use an RMII or GPSI interface, while the Gigabit Ethernet ports use GMII/TBI/MII interfaces for auto-negotiation. Supporting both full and half-duplex operation, the devices meet a range of voice applications.

Time-to-market advantage

Mitel supports time-to-market for network equipment manufacturers with this product. The IP switches can be combined with Mitel's Ethernet PHY, and a full suite of Mitel protocol and management software to form a complete Layer 2 switching solution.

VerSA, a proven network software suite developed by Vertex, provides complete management and stacking ability using high-speed Gigabit Ethernet ports. The software includes low-level drivers for SNMP, BPDU, SBM, RSVP, and IGMP packets for multicast, and supports features including trunking, VLANs, port mirroring, and source port locking. VerSA systems can scan the network to determine the interconnect topology of the stacked switches, and identify non-VerSA switches for exclusion from the stack. Standalone VTS2600 switches can be upgraded to VerSA by downloading the VerSA software to the switch using TFPT.

Support, Price and availability

The family of VoIP switching ICs is sampling now, with volume production scheduled for first quarter 2001. All three devices are supplied in a 553-pin BGA package. Pricing is US $82 for the VTX2604, US $64 for VTX2603, and US $69 for VTX2602 in 10k volumes.

A design kit will be available in October for US $4500, which includes design schematics, board layout, executable software, and a reference system.

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. For more information visit www.mitelsemi.com

Mitel is a global provider of semiconductors and communications systems for converging voice and data networks in a rapidly evolving Internet economy. The company has annual revenues of $1.4 billion and employs some 6,000 people worldwide. For more information visit www.mitel.com

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 risk, 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.

Worldwide LAN Switch Market Review and Forecast, 1997-2003, by Esmarelda Silva, Nov 99, IDC# 20502

The DS313 will be demonstrated September 26-28 at: Networld + Interop Atlanta Georgia World Congress Center Booth 4371