Amend the agreement they reached last October to realign their cable businesses to create a new company

April 9, 2001

1 Min Read

BOSTON and DULUTH, Ga. -- NortelNetworks Corporation (NYSE:NT)(TSE:NT.) and ANTEC Corporation(Nasdaq:ANTC) today announced an amendment to the agreement theyreached last October to realign their cable businesses to create a newcompany to lead the broadband cable access industry.

Under the amended agreement, Nortel Networks and ANTEC willimmediately prior to closing contribute to Arris Interactive L.L.C.the amount of all outstanding loans previously provided to ArrisInteractive, approximately US$114 million and US$10 million atDecember 31, 2000, respectively. At closing, Nortel Networks willtransfer to the new company its existing membership interest in ArrisInteractive in return for 37 million shares of common stock in the newcompany. Nortel Networks will own approximately 49.3 percent of thenew company, and ANTEC stockholders will own the remaining 50.7percent. Nortel Networks will also convert at closing approximatelyUS$90 million of certain current payables and royalties due from, andadvances made to, Arris Interactive into a new membership interest inArris Interactive. Subject to the satisfaction of certain conditions,Nortel Networks will have the right to require Arris Interactive toredeem this new interest. The transaction is expected to close in the second quarter of2001.

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