Boulder, Colorado and Brookfield, Connecticut, November 13, 2003 - Carrier Access Corporation (Nasdaq: CACS), a leading provider of broadband access and service delivery platforms for both wireline and wireless communications carriers, today announced a definitive agreement to acquire privately-held Paragon Networks International, Inc., a leading provider of wireless transport solutions to mobile wireless operators worldwide. Paragon's MASTERseries and BROADway products, which have over 100,000 ports deployed in 25 countries, will enhance Carrier Access' wireless product portfolio, which includes the Adit® and Axxius TM products, creating a leadership position in the wireless data transport solutions market. Carrier Access is acquiring all of the capital stock of Paragon Networks in a primarily stock transaction that will be accounted for under the purchase method of accounting. The acquisition has been approved by the board of directors of each company and is subject to customary closing conditions. Carrier Access expects the acquisition to close in the current quarter. The acquisition is anticipated to be accretive to earnings in the first quarter of 2004.
"As demand for wireless data proliferates through content-rich applications such as music, games and video images, wireless operators around the world are demanding increasingly sophisticated access technologies and products. This demand is driving a rapid expansion of global wireless communications infrastructures. We believe the combination of Carrier Access and Paragon will provide our combined global customer base with the depth and breadth of products and technologies to address continued subscriber growth and increasing consumer demand for media-rich services," said Roger Koenig, chief executive officer, Carrier Access. Paragon's products focus on end-to-end cell site access and hub site aggregation, providing port capacities from DS0 through OC3 and a full range of functionality including SONET/SDH Add-Drop Multiplexing, Digital Cross Connect, and IP routing capability. Carrier Access' Axxius 800 and Adit 600 products optimize bandwidth efficiency for multiple T1s, E1s and DS3s, and enable IP data service integration and remote management using flexible application service modules. The combined product portfolios offer the widest range of wireless transport access products supported by a single manufacturer. "We believe that Carrier Access' industry leadership position, strong customer focus, and commitment to technological excellence will provide the ideal combination to bring the benefits of our product solutions to more customers than ever before," said Russ Hawkins, chief executive officer, Paragon Networks. "Paragon is enthusiastically entering this new relationship and welcomes the opportunity to contribute to Carrier Access' strategic direction."
About Carrier Access Corporation
Carrier Access designs, manufactures and sells next-generation broadband access communications equipment to wireline and wireless communications service providers. Our products enable these customers to deploy new media-rich Internet services and converged personalized communications services, while lowering capital and operating costs. Our products are used to upgrade access capacity and implement the convergence of IP voice and data services. We sell our products directly to communications service providers and indirectly through a broad channel of global distributor and communications infrastructure OEM partners. To date, we have shipped over 180,000 units capable of delivering over 3.1 million business service connections. Our customers include wireless service providers, local exchange carriers, multi-cable operators, and international communications providers. For more information visit www.carrieraccess.com. The Carrier Access logo and Adit are registered trademarks and Axxius is a trademark of Carrier Access Corporation. Any other trademark is the trademark of its respective owner.
About Paragon Networks
Using wireline, wireless, and optical transmission facilities, Paragon Networks manufactures products that provide voice and data service connectivity, performance monitoring, compression, aggregation, layer 3 routing, quality of service filtering, and protection switching of both client and operations support systems traffic. Over 170 first and second tier wireless service providers (WSP) in 25 countries use Paragon Networks' products and technologies. Designed specifically for WSPs, Paragon Networks' suite of backhaul solutions enable the rapid deployment of voice and data services and provide a migration path to 3rd Generation networks. Paragon Networks is a privately held company headquartered in Brookfield, Connecticut that is owned by leading venture capital firms. Paragon Networks distributes its products worldwide through a network of both direct and indirect channels. For more information, visit Paragon Networks' website at www.paragon-networks.com.
This press release contains forward-looking statements about expectations, beliefs, plans, intentions and strategies of Carrier Access relating to its proposed acquisition of Paragon Networks. Such forward-looking statements include statements regarding the transaction's effect on Carrier Access' fiscal 2004 earnings, future product offerings, potential benefits of current and future product offerings, and beliefs about Carrier Access' position in the wireless data transport market. These statements reflect Carrier Access' current beliefs and are based on current information available to Carrier Access. The ability of Carrier Access to achieve these business objectives involves many risks and uncertainties that could cause actual outcomes and results to differ materially. In particular, while the companies have executed a definitive agreement, there is no assurance that they will complete the transaction. If we fail to satisfy conditions for closing, the transaction will not be consummated. Other risks and uncertainties include the failure to achieve expected synergies and efficiencies of the operations; employee retention and maintenance of the business of Paragon Networks before the closing of the transaction; the ability of Carrier Access to retain and motivate key employees of Paragon Networks; the ability to coordinate strategy and resources between Carrier Access and Paragon; loss of any Paragon customers; the ability to manage the integration of products and operations between Carrier Access and Paragon; timely development and acceptance of products and services and their feature sets; and other risks that are described from time to time in Carrier Access reports filed with the Securities and Exchange Commission.
Carrier Access Corporation
Telephone: (303) 442-5455