Riverstone Sells Enterprise to HP

SANTA CLARA, Calif. -- Riverstone Networks (Pink Sheets:RSTN), a leader in carrier Ethernet routers, has signed an agreement to sell Riverstone's cutting edge XGS enterprise technology platform and the associated software licenses to the ProCurve Networking Business unit of Hewlett-Packard Company for $28 million. The transaction is part of Riverstone's previously announced strategic decision to refocus on the service provider market.

Under the terms of the transaction, ProCurve will obtain hardware design and software operating system technology along with all rights and interests needed to develop and manufacture products and solutions based on the XGS technology. Riverstone retains their ownership of the operating system software. Both companies will independently develop the software for their respective products moving forward.

HP plans to use the technology to develop a new class of product designed to complement its ProCurve Adaptive EDGE Architecture. "Enterprise customers turn to us to deliver cost-effective, highly available, high performance networks to support their emerging security, mobility and convergence applications," said John McHugh, Vice President and General Manager of HP's ProCurve Networking Business unit. "Our upcoming ProCurve EDGE Fabric will incorporate the technology acquired from Riverstone to interconnect intelligent edge devices, enhancing our Adaptive EDGE Architecture."

Riverstone Networks Inc.

Hewlett-Packard Co.