New Mitel Chip Delivers Best-in-Class Reliability for Caller ID: - Helps protect personal privacy: - Exceeds Bellcore 'speech immunity' specifications.

Business Editors

OTTAWA--(BUSINESS WIRE)--May 16, 2000

Mitel Semiconductor, a division of Mitel Corporation (TSE:MLT.) (NYSE:MLT) (LSE:MLT.L) , is building on its leadership position in Caller ID chips with a new integrated circuit that exceeds the benchmark performance specifications that define best-in-class reliability in Caller ID equipment.

Mitel's high-performance MT88E46A is a Caller ID (CID) and Caller ID on Call Waiting (CIDCW) receiver chip that is used in corded and cordless telephones, Internet phones, answering machines, caller ID adjuncts and computer telephony integration (CTI) systems.

Popularity of Caller ID Quadruples

According to a 1999 Arbitron NewMedia Pathfinder study*, 40 percent of U.S. households now have Caller ID, up from only nine percent in 1995. Consumers were initially reluctant to use Caller ID services because of concerns about personal privacy. But with the proliferation of telemarketing, they now view Caller ID and Caller ID on Call Waiting as services that protect personal privacy and family time. Responding to demand, telephone companies are now offering such services as anonymous call rejection, call privacy, and priority call handling.

Mitel has demonstrated leadership in the Caller ID market since 1995, when it was first to integrate the CID and CIDCW functions on a single silicon integrated circuit. The company now offers a family of devices that address the requirements of this fast-growing market.

"Mitel's leadership is based on applying mixed-signal technology to increase performance and reliability in caller ID equipment," said C.P. Fu, product manager, Analog Signal Processing Components, Mitel Semiconductor. "Our new device is a low-cost, high reliability solution that enables telephone companies to offer hassle-free call management services."

Best-in-Class Performance

Human speech interferes with the ability of Caller ID on Call Waiting equipment to properly detect or interpret the CPE Alerting Signal (CAS) of an incoming telephone call. When interference occurs, conversation is momentarily interrupted, or Caller ID information is not sent to the user. Thus, Caller ID circuits must be "immune" to speech. Mitel exceeded Bellcore's (now Telcordia) speech immunity performance specifications by developing a patent-pending CAS detector.

Single-Chip Device Reduces Cost

The MT88E46A contains all of the circuitry required for a complete physical layer solution, including a Bellcore-compliant CAS detector, 1200 baud Bell 202/CCITT V.23 FSK demodulator, and simple microcontroller interface. With two input op-amps, the MT88E46A allows connections to both Tip/Ring, and the telephone hybrid or speech IC receive pair, for optimal CIDCW implementation. The superior CAS detector dramatically reduces false signal detection (a condition known as "talkoff") and signal non-detection ("talkdown") problems.

The device also incorporates power-management functions, including power-down for the FSK, CAS, or full-chip when required. The MT88E46A is suitable for applications using a fixed power source (with a 10% variation) between 3 and 5V. Mitel provides an evaluation kit and application note to ease system development.

Pricing and Availability

The MT88E46A is packaged in a 20-pin SOIC with tape and reel option. The device is now in full production. Pricing is US $1.39 in 100K unit quantities.

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 $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 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.

*Pathfinder news release, "Caller ID Acceptance Dramatically Increases With a Broad Appeal to Consumers at All Income Levels," August 9, 1999.