Nortel Dumps Some More

Agrees with C-MAC to divest majority of manufacturing activities related to DMS circuit-switching products

October 3, 2001

1 Min Read

TORONTO -- Nortel Networks (NYSE:NT)(TSE:NT.) announced it has entered intoan agreement with C-MAC Industries Inc. (NYSE:CMS) to divest themajority of its manufacturing activities related to the systemsintegration, configuration, and testing of the Company's DMScircuit-switching products. C-MAC will also supply back to NortelNetworks systems integration, configuration, and testing services forDMS products, and will assume most of the management functions relatedto the associated supply chain. As part of this agreement, C-MAC will purchase from NortelNetworks most of the DMS-related manufacturing activities currentlyperformed in the Company's Systems House in Research Triangle Park,North Carolina. Nortel Networks also proposes to divest to C-MACsimilar manufacturing activities today performed in its Systems Housein Monkstown, Northern Ireland. The transactions include the sale ofassociated equipment and inventory."By divesting these manufacturing activities to C-MAC, with whomwe already have a strong relationship, we are better able to focus ourinvestment and internal resources on core areas that give uscompetitive differentiation in the marketplace," said Richard Lowe,vice president, Global Customer and Product Operations, NortelNetworks. "Those skills include the rapid introduction, integration,and testing of advanced end-to-end network solutions."Nortel Networks Corp.

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