PMC-SIERRA ACQUIRES MALLEABLE TECHNOLOGIES FOR VOICE-OVER-PACKET DSPs
PMC-Sierra will acquire Malleable Technologies, a start-up developing Voice-Over-Packet digital signal processors (DSPs), for approximately $229 million (1,250,000 PMCS shares).  Malleable Technologies' architecture integrates DSP and packet processing functions into a single chip, replacing over ten DSP devices typically used in current designs.  The DSPs compress voice traffic into ATM or IP packets.  Each device can process and packetize up to 96 channels of compressed voice or 512channels of uncompressed voice.  Over the past year, Malleable collaborated with PMC-Sierra to ensure a seamless integration with PMC-Sierra's VORTEX chip set and T1/E1 interface devices.  Together the products will offer an end-to-end silicon solution for next-generation VoATM Gateways, VoIP Gateways and Third Generation Wireless equipment.  Malleable Technologies is based in San Jose, California.  PMC-Sierra was an early investor in the company and already held a 15% equity stake.  http://www.pmc-sierra.com/pressRoom/pr/2000061401.html
http://www.malleable.com/
PMC-Sierra, June 14, 2000

• Malleable Technologies was founded in Q4 1998 by Curtis Abbott, who was previously a consultant to various semiconductor companies.

NORTEL NETWORKS ACQUIRES EPICON, LAUNCHES ASP PLATFORM
Nortel Networks will acquire EPiCON, a start-up developing systems for software hosting, for US$275 million in stock.  EPiCON's software enables application service providers (ASPs) to manage and update software to thousands of desktops from a central server.  The software initially was targeted at enterprises as a means to deploy or update software remotely to thousands of corporate desktops.  Nortel Networks will integrate the technology into a new Preside Managed Application Services Platform, which will also include technology from BEA Systems, Inc., Tarantella, and iPlanet E-Commerce Solutions (a Sun-Netscape Alliance) and will be compatible with client-server technology from CiTRiX.  Nortel Networks will also broadly integrate its ASP solution with the operations support systems (OSS), Preside directory, policy services and SLA management technology.  http://www.epicon.com/News/Releases/p000614b.htm
http://www.epicon.com/News/Releases/p000614.htm
Nortel Networks, June 14, 2000

ALCATEL AND THOMSON JOIN FORCES FOR VIDEO NETWORKS
Alcatel and THOMSON Multimedia will consolidate their existing digital video businesses to create a new company aimed at supplying cable network operators with MPEG products, multimedia head-ends and HFC solutions.  The new company will have 500 employees and a starting revenue base of Euro 150 million.  http://www.thomson-multimedia.com
http://www.alcatel.com/vpr/index.htm?body=/latestnews/14062000uk
Alcatel, June 14, 2000

SUN AND METROMEDIA FORM ALLIANCE FOR OUTSOURCED STORAGE SERVICES
Sun Microsystems and Metromedia Fiber Network are developing new remote storage management applications for supporting outsourced bandwidth and storage services.  The alliance will combine Sun's storage and server technologies, with Metromedia's local fiber facilities and MFN's AboveNet subsidiary.  The network-based storage services will be targeted at a new group of Storage Service Providers (SSPs).   http://www.mmfn.com/  http://www.sun.com
Sun Microsystems, June 14, 2000

ALLIED RISER TESTS AIRFIBER'S "WIRELESS OPTICAL" FOR LAST MILE ACCESS
Allied Riser Communications will begin testing AirFiber's OptiMesh wireless optical equipment as a last mile access option.  The equipment provides 622 Mbps point-to-point connections using open-air lasers aligned to each other with a clear line of sight.  AirFiber's system uses a "mesh" or multiple point-to-point design to ensure reliability in case one of the links gets blocked.
http://www.airfiber.com 
AirFiber, June 14, 2000

• In April, Nortel Networks signed an OEM agreement to resell AirFibers free-air lasers.
  
• Also in April, Lucent and TeraBeam Networks announced plans to form a systems company to integrate Lucent's fiberless optical technology.  TeraBeam Networks is a service provider planning to offer high-bandwidth connectivity in major US cities.  http://www.terabeam.com/

ALCATEL CREATES NEXTENSO INTERNET PORTAL SOFTWARE HOUSE
Alcatel spun-off its HomeTop Solutions business unit into an independent subsidiary dedicated to creating software for multi-terminal, multi-network portals.  The vision is to supply tools for the creation and management of next-generation Internet portals accessed via existing and future Internet devices, such as Internet screenphones, TV set-top boxes, handheld organizers, WAP-enabled mobile telephones, PCs, etc.  The new company will be Nextenso and it will be based in Paris, France.  http://www.alcatel.com/vpr/index.htm?body=/latestnews/14062000_1uk
http://www.nextenso.com/
Alcatel, June 14, 2000

CORVIS ACQUIRES BAYLIGHT NETWORKS
Corvis acquired Baylight Networks, a start-up based in Palo Alto, California, for an undisclosed sum.  Baylight is designing optical network access systems and subsystems.  The company has not previously disclosed any product plans or investor information.  http://www.corvis.com
Corvis, June 14, 2000

• Last month, Corvis announced plans to acquire Algety Telecom, a start-up developing ultra high capacity, long-haul optical transport technology.  In late April, Corvis filed SEC paper for its pending initial public offering (IPO).