Teledata to Merge With Enablence's System Division

HERZLIYA, Israel, April 15, 2010 /PRNewswire-FirstCall/ -- Teledata Networks, a leading global provider of innovative Multiservice Access solutions for Next Generation Networks, has signed a definitive agreement ("Agreement") to merge with Enablence Technologies Inc. (TSX-V: ENA), a leading supplier of fiber-to-the-premises (FTTP) equipment and advanced optical components, for $50M in cash, notes payable and shares, subject to certain approvals.

Under the terms of the Agreement, Teledata will merge with Enablence's Systems Division to create a stronger player in the Fiber-to-the-Premises (FTTP) market. The combined company will be strategically positioned to leverage global reach, technology leadership and deep market expertise to better serve both Enablence and Teledata customers and capture new business opportunities in established and emerging markets around the world.

Both Enablence and Teledata address the needs of telecom service providers to move to a unified communications infrastructure based on Ethernet and IP protocols, with complementary markets, customer bases and technology. The combined company will have in-house all current and emerging communications technology options for optical and copper based access networks, including POTS, E1/T1, xDSL, GPON, GE-PON, Active Ethernet Optical and 10G PON.

Enablence's Systems Division is a recognized leader in FTTP solutions that address the exploding need for bandwidth with its TRIDENT7 and MAGNM platforms. The TRIDENT7 all-optical universal access platform for the international market is the only platform currently available that supports all three leading ITU and IEEE fiber access standards - GPON, GE-PON and Active Ethernet. The MAGNM product line for the North American market is designed to deliver traditional telephone communications standards, as well as GPON and Active Ethernet optical network standards, from the same platform. Enablence's geographical reach is focused on advanced economies in North America, Europe, Asia-Pacific and Latin America.

This technological horsepower complements Teledata's BroadAccess platform -- a leading Multiservice Access Platform (MSAP) that was designed for the international market capable of handling traditional voice, copper-based broadband services such ADSL2+ and VDSL2, and fiber based services such as GPON and Active Ethernet.

Enablence will benefit from being able to offer its existing customers Teledata's xDSL and multiservice capabilities, as well as from Teledata's strong market position supplying Tier 1 service providers in emerging international markets where it currently does not have a significant presence.

The combined company will remain focused and committed to Teledata's Multi-Service Access Platform market and to the ongoing development and support of Teledata's BroadAccess product family. Teledata will benefit from Enablence's strength as a public company with a healthy balance sheet and will be able to expand its customer base with Enablence's state-of-the-art optical access technologies.

"Through this merger, we are strengthening our commitment to the market," said Eran Ziv, CEO of Teledata. "As part of Enablence, we can dramatically boost both our addressable market and product diversity to better serve our customers' needs with advanced optical technologies like GPON and Optical Active Ethernet. By combining forces with such an established leader in FTTP technologies, we can incorporate the most advanced optical capabilities into our BroadAccess platform much faster than independent development would have allowed us to do."

"The combined company will have the critical competitive mass and stability to meet the needs of service providers and network operators in established and emerging markets around the globe, including Tier 1 operators with millions of subscribers," added Tim Thorsteinson, the incoming CEO of Enablence. "We will have more than $100 million in annual revenues, over 600 customers in 75 countries and a healthy balance sheet. With no redundancies in our businesses, the combined company will be able to leverage its strengths quickly and achieve profitability in the near-term with minimal operational disruption. For all of our valued customers and partners, it will be business as usual under the shared leadership of existing management from both companies."

About Enablence Technologies Inc.

Enablence Technologies Inc., (TSX-V: ENA) a publicly traded company headquartered in Ottawa, Canada, designs, manufactures and sells optical components, subsystems and systems to a global customer base.

Enablence's Systems Division has an expanding fiber-to-the-premise (FTTP) product portfolio featuring a variety of architectural options. It enables service providers to evolve their access networks from traditional copper-based networks to advanced optical communications access networks that are based on state of the art IP and Ethernet standards, for triple-play voice, video and data services including HDTV, IP Telephony and ultrafast internet access. The Division's network equipment has been deployed with 420 service providers world-wide that serve over 4 million subscribers.

Enablence's Optical Components and Subsystems Division is a global leader in applying Planar Lightwave Circuit (PLC) technology to integrate multiple components into a single optical chip to reduce footprint and costs. Network and equipment designers around the world turn to Enablence for a variety of components and subsystems for access, metro and long-haul, including transceivers, splitters, waveguides, optical channel monitors, multiplexers, ROADMs, switches, tunable dispersion compensators, and photodiodes. The Division serves over 120 system and subsystem developers and its products have been integrated in all major communications networks world-wide, serving tens of millions of subscribers.

About Teledata Networks

Teledata Networks is a leading global provider of innovative Multiservice Access solutions for Next Generation Networks. The company provides unique solutions for telecom operators and service providers to enable them to provide advanced triple-play services and migrate their network to NGN.

Teledata Networks has accumulated a wide installed base, spanning millions of lines in over 55 countries worldwide, many of which are Tier-1 services providers. Its 27 years of experience have yielded outstanding technological leadership, a high level of expertise and a strong foundation of intellectual property.

Teledata Networks is a private company, in which the major shareholders are the Kardan group (Euronext: KARD), Elron Electronic Industries (TASE: ELRN) and Infinity Venture Capital Fund. Learn more about Teledata Networks at http://www.teledata-networks.com.

    For further information contact:

    Enablence Technologies Inc.
    Tim Thorsteinson,
    President and COO
    +1-613-270-7867

    Teledata Networks
    Eran Ziv,
    CEO
    +972-9-959-1746

SOURCE Teledata Networks Ltd