Avici Systems Announces Termination of Alcatel Supply Agreement
N. Billerica, MA, October 6, 2006 — Avici Systems Inc. (NASDAQ: AVCI), today announced that it has terminated its supply agreement with Alcatel Teletas to provide its customer with the Avici TSR® core routing solution.
"We continue to execute on our focused strategy aimed at driving to profitability and positive cash flow. Tactically, that means we will concentrate our energies on those opportunities that are consistent with that goal and provide the optimal return for each dollar invested," said Bill Leighton, President and CEO of Avici Systems.
Under the Resolution Agreement, Avici and Alcatel Teletas will enter a transition period during which they will unwind the financial arrangements and decommission the routing equipment. Avici will provide support to Alcatel Teletas during this transition period.
About Avici Systems
Avici Systems Inc., headquartered in North Billerica, Mass., is a leading provider of purpose-built carrier-class routing solutions for the Internet. Avici's family of routers is designed to meet carrier requirements for the highest scalability, reliability and network availability, while lowering the total cost of building and operating their networks. The company's routing systems provide new IP solutions to some of the world's leading service providers. For more information, please visit us at www.avici.com.
Avici is a trademark of Avici Systems Inc.
This release contains information about Avici's future expectations, plans, and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. When used in this press release, the word "will", "expected" and other similar expressions are intended to identify such forward looking statements. Such risks and uncertainties include, but are not limited to, market acceptance of Avici products, services and enhancements, customer purchasing patterns and commitments, development of the market place, product development and enhancement, intensity of competition of other vendors, technological changes, reliance on distribution partners, risks associated with international expansion, and other risks set forth in Avici's filings with the Securities and Exchange Commission.
| For more information contact: |
| Inna Vyadro Director of Investor Relations Avici Systems 978-964-2000 ivyadro@avici.com |