Will pay $2.5B in its common shares on closing, as well as up to an estimated $500M in its common shares after December 31, 2003

February 6, 2001

1 Min Read

BOSTON -- Nortel Networks Corporation [NYSE/TSE: NT] today announced a definitive agreement whereby it will acquire JDS Uniphase's Zurich, Switzerland-based subsidiary, as well as related assets in Poughkeepsie, New York. The Zurich-based subsidiary is an industry leader in the design and manufacture of strategic 980 nanometer pump-laser chips. A 980 nanometer pump-laser chip provides the energy source by which light is strengthened as it is transmitted on fiber between cities or buildings. Nortel Networks will pay US$2.5 billion in its common shares on closing, as well as up to an estimated additional US$500 million in its common shares after December 31, 2003 to the extent it does not meet certain purchase commitments from JDS Uniphase by that date.

With this acquisition, Nortel Networks will gain one of the world's leading plants for designing and manufacturing large volumes of 980 nanometer pump-laser chips, which are essential to creating the all-optical Internet. The acquisition will accelerate Nortel Networks ability to integrate this technology and associated intellectual property into its high-value optical amplifier modules used to boost and amplify light in dense wave division multiplexing (DWDM) networks. These modules are used by both Nortel Networks and its customers.

http://www.nortelnetworks.com/corporate/news/newsreleases/2001a/02_06_0101076_topaz.html

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