AFC to Acquire North America Access

PETALUMA, Calif., Jan. 6 -- Advanced Fibre Communications Inc. (AFC), a manufacturer of next-generation edge access equipment and broadband solutions for the telecommunications industry, announced it has signed a definitive agreement to acquire North American Access (NAA), a business unit of Marconi Communications Inc., a subsidiary of Marconi Corp. AFC said the proposed transaction supports its business strategy to expand its optical access portfolio and enhance its ability to serve large telecommunications carriers.

Under the agreement, AFC's subsidiary will acquire NAA for $240 million in cash and will purchase the assets of NAA's business. The transaction encompasses NAA's Bedford, Texas, facility and its employees. The transaction -- which is subject to regulatory review and other customary closing conditions -- is expected to be completed in the first quarter of 2004.

AFC said the addition of NAA's product portfolio enhances its ability to deliver more fiber-based access network solutions. North American Access is a provider of fiber-access solutions to regional Bell operating companies and large North American incumbent local exchange carriers.

"This acquisition brings together two companies with long histories of success within the highly competitive access networking market," said John Schofield, chairman, president and CEO of AFC. "Collectively, AFC and North American Access possess a significant deployed base of field-proven broadband access solutions. We view the product lines from both companies to be complementary and intend to continue and enhance both to best serve a broad customer base."

For more information, visit: www.afc.com