Tellabs to acquire Ocular Networks

Nov. 30, 2001--Tellabs announced today that it will acquire Ocular Networks, provider of next-generation optical solutions for the metropolitan edge, for roughly $355 million in cash and options.

Tellabs announced today that it will acquire Ocular Networks, provider of next-generation optical solutions for the metropolitan edge, for roughly $355 million in cash and options. According to company representatives, the acquisition combines Ocular's technology with Tellabs' strong customer relationships, distribution channels, customer service and field support, which could expand Tellabs' addressable market by up to $5 billion in 2003 and $9 billion in 2005, they claim.

Ocular Networks' Optical Service Xchange (OSX) transport system extends Tellabs' position in the metropolitan network by supporting distributed grooming throughout the network. This new technology will enable Tellabs to increase network utilization efficiency in more than 1,000 additional central offices and avoid backhauling traffic in the network.

"This acquisition benefits customers by marrying Tellabs' unique distribution strength with future network architectures," said Richard C. Notebaert, president and chief executive officer of Tellabs. "Now, we will be able to help customers optimize their network efficiency all the way to the edge."

Tellabs' acquisition of Ocular Networks is expected to be complete in the first quarter of 2002. Tellabs plans to retain the Ocular Networks office site in Reston, Va.

Tellabs (Naperville, IL) designs, builds, and services optical networking, broadband access, and voice-quality enhancement equipment. For more information, visit the company's Web site at www.tellabs.com.

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