Tele1 Europe increases Dynarc networking equipment contract to $18 million

March 5, 2001
Mar. 5, 2001--Dynarc, a provider of Service-Optimized Optical IP Rings, announced an extended two-year contract with Tele1 Europe to deploy a pan-Nordic network.

Dynarc, a provider of Service-Optimized Optical IP Rings, announced an extended two-year contract with Tele1 Europe (NASDAQ: TEUR, Stockholm Stock Exchange: TEUR) to deploy a pan-Nordic network using Dynarc 5116's to deliver a broad set of advanced IP services to corporate customers located in major traffic hubs. The scope of the first two phases of the contract is valued at approximately $18 million. Tele 1 Europe has placed an initial order for the first phase comprising $6.1 million of Dynarc equipment that will be rolled out during the second and third quarter of this year.

Following a successful deployment of Dynarc's existing products, Tele1 Europe, a data and telecommunications provider for large and mid-sized businesses in the Nordics, has now validated the new Dynarc 1000-5000 product line and decided to move to large-scale deployment. The aggressive rollout plan will include immediate deployment of 160 Dynarc 5116 auto-provisioning routers in the major Nordic cities.

The deployment in the optical metro networks will allow Tele1 Europe to provide fully resilient and enhanced high-speed services including bandwidth guarantees for its most demanding corporate customers. The cities will be linked together, also using the Dynarc 5116 auto-provisioning routers, for seamless cross-Nordic services. In order for Tele1 Europe to provide its Nordic customers with pan-European services, Tele1 Europe also plans to equip its European optical ring, which connects London, Amsterdam and Hamburg, with Dynarc routers.

For the last six months, Dynarc's first commercially available metro router, the Dynarc 56 was successfully deployed in Tele1 Europe's optical access networks in Stockholm for backhauling DSL traffic. Now, the Dynarc 5116 auto-provisioning routers will be used to enable a broad set of enhanced IP services for corporate customers, including VPN services with a guaranteed 100 Mbps or higher IP-connection and Internet access. The inherent auto-provisioning capabilities of the Dynarc equipment help Tele1 Europe to retain and grow its customer base.

About Tele1 Europe:

Tele1 Europe is a facilities-based pan-Nordic telecommunications operator headquartered in Stockholm, Sweden. It provides communications services, including voice, mobile services, data, and value-added services to large and medium sized businesses in Sweden, Norway, Denmark and Finland. For more information, visit www.tele1europse.com.

About Dynarc:

Dynarc, a provider of Service-Optimized Optical IP Rings, is leveraging the optical layer to provide advanced IP services-on-demand. Dynarc's next-generation solutions address the needs and requirements of Metropolitan Area Networks (MANs) and optical access networks. For more information, visit www.dynarc.com.