Nortel to Acquire CoreTek for $1.43 Billion

LONDON (03/21/2000) - Continuing its high profile buying spree, Nortel Networks Corp. has agreed to acquire optical component manufacturer CoreTek Inc. for US$1.43 billion in common stock shares.

This marks Nortel's third large recent purchase in the field of optical networking. A week ago, Nortel bought California-based optical switch maker Xros Inc. in a stock deal worth $3.25 billion, and last year, it acquired Qtera Corp. Ultra technology, also for $3.25 billion in Nortel stock. [See "Nortel to Acquire Xros for US$3.25 Billion," March 14, and "Nortel to Buy Qtera for $3.25 Billion in Stock," Dec. 15, 1999.]The transaction is expected to close this quarter and is subject to standard regulatory approvals.

CoreTek, a private company based in Wilmington, Massachusetts, has 120 employees. The company will ship its next-generation components in the fourth quarter of this year.

CoreTek makes next-generation optical components such as tunable lasers, which use tiny movable mirrors to alter the wavelength of light emitted by semiconductor lasers. The completed devices allow networks to change the wavelength of light in real-time as it travels through a network, improving the network's speed and performance by allowing network traffic to be re-routed in real time, Nortel said today.

CoreTek's components are designed to operate in 10G-bps (bits-per-second) systems, which is the standard Nortel uses.

Nortel, in Brampton, Ontario, is at +1-905-863-0000 or at http://www.nortel.com/. CoreTek can be reached at +1-978-570-1200 or on the Web at http://www.coretekinc.com/.

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