BreconRidge Buys Nortel Module Unit

OTTAWA -- BreconRidge Manufacturing Solutions Corporation (“BreconRidge”), a top 50 global electronics manufacturing services (“EMS”) company, announced today that it has signed a definitive agreement to acquire certain assets of the High- Speed Modules business unit of Nortel Networks (NYSE/TSX:NT). The transaction is expected to close in mid-August 2003. The assets to be acquired relate to the design, development, manufacturing, test and sale of high-speed modules applicable to optical and wireless transmission systems, satellite communications systems, radar systems for the defense industry and other microelectronics applications with speeds greater than 10 Gbit/s.

BreconRidge is also pleased to announce that as part of the transaction, the companies will also enter into a three-year supply agreement under which BreconRidge will be a supplier of high-speed modules for use in Nortel Networks 10 Gbit/s (“OC-192”) optical transmission systems.

As part of the transaction, BreconRidge will also acquire Nortel Networks leasehold interest in the facility located at 500 Palladium Drive, Ottawa. This state-of-the-art facility consists of approximately 330,000 square feet of highly advanced manufacturing and office space, including, 70,000 square feet of “class 10,000 clean room” and 10,000 square feet of “class 1,000 clean room". BreconRidge plans to consolidate its Canadian operations, including its High Speed Modules business, into this facility and establish 500 Palladium Drive as its worldwide headquarters.

Bruce Rodgers, BreconRidge President and CEO, commented, “This announcement is a significant milestone in the development of BreconRidge as a world-class EMS company. With this acquisition, we will have broadened our service offerings such that we will be able to provide advanced design and development services, from multi-chip modules to complete microelectronics packaging. I am particularly pleased with the fact that we will be commencing a supply relationship with one of the leading companies in the world and I look forward to a long and prosperous relationship with Nortel Networks.”

“With the highly skilled engineering and manufacturing personnel involved in this deal, BreconRidge will be enhancing its capabilities to develop, launch and cost reduce products for all our customers. With deep experience in optical, wireless and associated applications, we will have tremendous cross-market appeal. Combined with the manufacturing and test capabilities already in-house, BreconRidge will now be one of a select group of EMS companies with a broad spectrum of robust capabilities, ” concluded Rodgers.

“We look forward to entering into this transaction and to a mutually beneficial relationship with BreconRidge” said Brian McFadden, president, Optical Networks, Nortel Networks. “The closing of this transaction will essentially complete the plan we announced last year to focus our investment on the systems side of the optical business and to work closely with external suppliers for our optical components needs. As a fast-growing company with strong management, we believe BreconRidge is a supplier which will help Nortel Networks maintain its leadership position in optical networking.”

Nortel Networks Corp.