Alcatel (Paris) entered into a definitive agreement to purchase Packet Engines Inc. (Spokane, WA)

Alcatel (Paris) entered into a definitive agreement to purchase Packet Engines Inc. (Spokane, WA) in a cash transaction with an implied value of $315 million. The acquisition, subject to approval by Packet Engines` shareholders, enhances Alcatel`s strategy to enter the Internet protocol market and expand its presence in the United States. Packet Engines stands to benefit from Alcatel`s worldwide presence in the enterprise and carrier markets. Following the acquisition, Packet Engines will retain its name and continue to be headquartered in Spokane.