Northern Telecom And Shiva Forge Strategic Alliance On Internet And Remote Dial-Up Switching For Service Providers And Large Enterprises

Business Wire, May 15, 1995

BURLINGTON, Mass. and Richardson, Texas--(BUSINESS WIRE)-- May 15, 1995--Northern Telecom (Nortel), a leading global developer of communications products, systems and networks, and Shiva Corporation, the leader in dial-in remote access, today announced an agreement to jointly develop and market solutions to carriers, Internet Service Providers (ISPs) and major enterprises. The global agreement is focused on a new product category -- the Internet and remote dial-up switch -- which is a larger scale version of the remote access server and is designed for the rapidly growing market segment of Internet service providers and carriers. The agreement includes software, support, technology transfer, joint development and joint sales and marketing.

Remote access solutions give lap-top computer users and telecommuters dial-in access to corporate networks from any location. Internet access using the Nortel-Shiva technology will enable carriers and Internet Service Providers to more cost-effectively re ach home-based or nomadic Internet users. According to Dataquest, some 12 million new Internet accounts will be deployed in 1996.

"The Public Switched Telephone Network and the Internet are colliding. The intersection point of these two large and sophisticated networking environments represents a market discontinuity that Nortel and Shiva intend to fill," said Klaus Buechner, Nortel's group vice president and general manager of Multimedia Networks. "By combining Shiva's experience and leadership in remote access with Nortel's strong presence in wide-area data networks, enterprise networks, and central office switching, we will create a powerful solution capable of handling the Internet and remote dial-up switching requirements of our largest public and private network customers."

"This strategic alliance with Nortel allows Shiva to expand our addressable market beyond the traditional customer premises equipment segment of remote access into the large and fast growing carrier and ISP segment," said Frank Ingari, Shiva's President and CEO. "We are delighted to work with Nortel to deliver solutions to address the unique needs of advanced service providers."

Specific product announcements are expected in the fourth quarter of 1995.

Nortel is one of the world's most broadly diversified developers of communications products, systems and networks in three key market segments -- Enterprise Networks, Wireless Networks, and Carrier Networks (switching, broadband and network applications solutions). Nortel provides equipment, services and network solutions for information, entertainment, and communications networks operated by telephone companies, personal and mobile telecommunications companies, cable TV companies, corporations, governments, universities, and other institutions worldwide.

Nortel's portfolio of data and broadband multimedia switches includes carrier ATM cell switches, such as the Magellan Concorde and edge switch, the Magellan Passport frame/cell switch for carrier and enterprise networks, the Magellan DPN-100 frame switch, and the Magellan Access switch for remote and branch offices. Nortel had 1994 revenues of $US8.9 billion and has approximately 57,000 employees worldwide.

Founded in 1985, Shiva Corporation (Nasdaq:SHVA) develops and manufactures multiprotocol, multiplatform remote access products featuring transparent remote node connectivity to Local Area Networks. The LanRover and NetModem product lines provide access to Novell NetWare, TCP/IP, Microsoft LAN Manager, Windows for Workgroups, Windows NT, SNA and AppleTalk network resources.

The Shiva family of standalone and integrated remote access servers enables telecommuters and mobile professionals to make dial-in connections to the LAN; LAN-based users to make dial-out connections from the desktop to the Internet and other on-line services; and branch offices to make dial-up LAN-to-LAN connections to central sites over both PC and Macintosh computers.

Shiva can be accessed at sales@shiva.com; over the Shiva BBS at 617/273-0023 (300-28,000bps - 8,N,1).

CONTACT: For Shiva For Nortel

Barbara Ewen Brian Murphy

Lois Paul & Partners Nortel

617/860-5619 214/684-8589

Barbara_Ewen@LPP.com brian.murphy@nt.com

http://www.shiva.com http:/ /www.nt.com