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Mitel Corporation Acquires Telecom Sciences Corporation Limited For Cdn. $8 Million Kanata, Canada, May 19, 1998 - Mitel Corporation, has announced that it has acquired the products, technology, research & development facilities and sales and marketing organisation of Glasgow-based Telecom Sciences Corporation Limited (TSc) for Cdn. $8 million in cash. TSc was formed in February 1996, following a management buy-out of the former Philips Business Communications Systems plant in Scotland. TSc specialises in ISDN business products for the small-to-medium enterprise market. TSc is currently in receivership. The acquisition enhances Mitel's product portfolio and will allow Mitel to address a major segment of the market that has previously been unreachable. "The acquisition gives us an excellent opportunity to grow our market share and the business as a whole. TSc's products, particularly the iMAGINATION range, complement our SX-2000 flagship product line and allow us to re-enter the key system market with a very strong set of customer solutions," said Paul Butcher, managing director of Mitel's European Business Communications Systems operation. "TSC has a good pedigree in terms of product development and its technology fits well with Mitel's. Mitel now has a product line that fully addresses the needs of all its customers from 6 to 16,000 lines or more." he said. Mitel intends to open a new facility for TSc's former employees in the Airdrie region, replacing the existing offices. Mitel will therefore retain the centre of expertise in Scotland. "This latest acquisition is consistent with our strategy to increase shareholder value through profitable growth, both organically and through acquisitions," said Butcher. "Over the last two years we have acquired and successfully integrated Global Village and Gandalf technology into our Business Communications Systems Division. This latest acquisition is another step forward in the execution of Mitel's business strategy," concluded Butcher.