AFC to Acquire AccessLan

Advanced Fibre Communications to acquire AccessLan Communications, creating technology leader for building next-gen networks

March 27, 2002

1 Min Read

PETALUMA, Calif. -- Advanced Fibre Communications, Inc.(AFC®) (Nasdaq: AFCI), a leader in multiservice broadband solutions for thetelecommunications industry, today announced that it has agreed to acquireprivately held AccessLan Communications, Inc. of San Jose, Calif. AccessLanis a leading developer of carrier-class, multiprotocol network equipmentdesigned for large-scale networks.AFC is acquiring AccessLan for its next-generation technology that addressesATM (asynchronous transfer mode) switching, Ethernet, PON (passive opticalnetwork), DSL (digital subscriber line) and advanced IP (Internet protocol)markets. This technology is important to collapsing multiple networkelements into a single, cost-effective platform for next-generationnetworks. AFC's new platform, the Telliant(tm) 5000, enables carriernetworks migration from ATM to IP networking technologies.Under the terms of the agreement between AFC and AccessLan, AFC will acquireall outstanding shares of AccessLan stock that it does not already own forapproximately $43 million in cash and assume approximately $4 million inliabilities. Additionally, all options to purchase shares of AccessLancommon stock will be assumed by AFC and will become options to purchaseapproximately 1.2 million shares of AFC common stock. AFC currently holds aminority interest in AccessLan. This transaction will be accounted for as apurchase and is expected to close in the second quarter of AFC's fiscal2002. The transaction has been approved by the board of directors of bothcompanies, and is subject to customary closing conditions."We believe this acquisition is a key strategic move for AFC," said JohnSchofield, chairman, president and CEO of AFC. "It provides us with apowerful, central office broadband platform that has strong advantages overlegacy products in both cost and performance."Advanced Fibre Communications Inc. (AFC) AccessLAN Communications Inc.

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