C-COR to Acquire Philips Broadband

AMSTERDAM and STATE COLLEGE, Pa. -- C-COR.net (Nasdaq: CCBL), a global provider ofbroadband communications technology, systems, and services, and Royal PhilipsElectronics (AEX: PHI, NYSE: PHG) today announced that C-COR will acquirePhilips Broadband Networks (PBN) for a cash payment of approximately EUR 80million and the assumption of certain liabilities. The transaction isexpected to be completed during the second half of 2002, subject to customaryclosing conditions, regulatory approvals, and applicable consultationprocedures.Philips Broadband Networks employs approximately 500 people and is amongthe top providers of broadband products and services worldwide, with a strongcustomer base in Europe and in the Asia Pacific region. PBN is supported bysales and service organizations in twelve countries, and includes a design andproduction facility in Manlius, New York. Philips Broadband Networks designs,manufactures, and distributes a wide range of underlying technologies for theburgeoning broadband sector, including transmission products (transmitters andreceivers, optical nodes, network amplifiers, line extenders, and taps/passivedevices), network optimizing technologies (DWDM, WDM, and bandstackingdevices), and element management systems.Commenting on the envisaged transaction, David A. Woodle, Chairman and CEOof C-COR, said: "Philips Broadband Networks will provide us an opportunity tosignificantly increase C-COR's customer and installed equipment base in thehigh-potential growth markets of Europe and Asia. This purchase willcapitalize on the synergies of expertise, market focus, and product offeringsthat exist between C-COR and Philips Broadband Networks to strengthen C-COR'scompetitiveness and open new market opportunities."Upon completion of the transaction, Philips Broadband Networks will becomepart of C-COR's Broadband Communications Products (BCP) division. C-CORexpects that integration of PBN will be substantially completed by the end ofcalendar year 2002. Starting in calendar year 2003, the acquisition will addmore than $100 million in annual revenue and be accretive.C-COR.netPhilips Broadband Networks Inc.