pearse flynn

Newbridge Networks, headed by Pearse Flynn, designs, manufactures, markets and services wide area networking solutions for Internet service providers; local, long-distance, and wireless communications companies; cable television carriers; and enterprise customers in more than 100 countries. The Company leverages its relationship with a growing family of Newbridge Affiliate companies and strategic alliances with numerous other networking companies to deliver complete, end-to-end solutions. Newbridge customers include the world’s 350 largest telecommunications service providers and more than 10,000 corporations, government organizations and other institutions. Founded in 1986, the Company employs more than 6,000 people on six continents. News and information are available at www.newbridge.com.
This document may include forward-looking statements within the meaning of Safe Harbor provisions of the United States federal securities laws. These statements are based on current expectations, estimates and projections about the general economy and Alcatel’s and Newbridge’s lines of business and are generally identifiable by statements containing words such as “expects”, “believes”, “estimates”, or similar expressions. Statements related to the future performance involve certain assumptions, risks and uncertainties, many of which are beyond the control of Alcatel or Newbridge, and include, amongst others, applicable regulatory approvals, growth and customer spending patterns in the telecommunications market, foreign and domestic product and price competition, cost effectiveness, changes in governmental regulations, general economic and market conditions in various geographic areas, interest rates and the availability of capital. Although Alcatel and Newbridge believe their respective expectations reflected in any such forward-looking statements are based on reasonable assumptions, they can give no assurance that those expectations will be achieved; actual results could differ materially from the above as a result of these or other factors.

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Alcatel expects the deal to be substantially accretive on a post-goodwill basis as early as 2001, with a slight positive impact on EPS expected in 2000. These forecasts do not include any potential revenue synergies, though this is a key driver for the transaction. They do include US$ 150 million of expected cost savings in 2001, representing the 2001 impact of anticipated savings of US$ 230 million on an annualized basis.

Pearse Flynn will head the expanded team as President of Alcatel’s Carrier Internetworking Division. He will also be appointed CEO of the legal entity Newbridge. He will report to Krish Prabhu, COO of Alcatel Telecom. Krish Prabhu will oversee the integration process.

Completion of the acquisition is subject to Newbridge shareholder approval of the Merger Agreement, Alcatel shareholder authorization to complete the transaction, the expiration or termination of waiting periods under applicable antitrust laws, Canadian foreign investment review and other customary conditions, including Canadian court approval. To facilitate a deferral of Canadian income tax for Canadian shareholders of Newbridge, Newbridge shares will be converted into securities that can be exchangeable into Alcatel ADSs for a period not to exceed five years from the closing of the transaction.

http://www.home.alcatel.com/vpr/archive.nsf/DateKey/23022000_1uk?OpenDocument