10/11/2001
DTS Liquidates Repair Services Division and Certain Other Assets to Pay Down Debt
(CALGARY, Canada and DULUTH, Georgia - October 11, 2001) - Wi-LAN Inc. (TSE: WIN), a global innovator in the field of high-speed wireless data communications, today announced that its subsidiary Digital Transmission Systems (DTS) (OTC BB: DTSX) has entered into an agreement in which Somera Communications (Nasdaq: SMRA) acquired certain assets, including certain equipment and inventory, and assumed certain liabilities related to the repair business, of Asurent Technologies, a wholly owned subsidiary of DTS.
"We stated in our third quarter report that we had made the decision to dispose of a portion of the Asurent operations owned by DTS," said Dr. Hatim Zaghloul, President, Chairman, and CEO,
Wi-LAN. "With this transaction, we have now acted upon that decision."
Under the agreement, Somera is expected to pay approximately US$6 million in cash, most of which will be used to pay secured creditors of the assets. Asurent Technologies will remain a subsidiary of DTS, and will continue to manage the balance of assets and liabilities.
"The sale of the Asurent assets was anticipated through non-cash special charges and asset write-downs recorded in the third quarter consolidated financial results of Wi-LAN," said Steve Bellamy, Chief Financial Officer, Wi-LAN. "Although it has no impact on our core wireless operations, we are pleased to see this transaction close because it will enhance Wi-LAN's consolidated financial results going forward."
In March 2000, Telcor Communications Inc. was purchased by DTS, and after restructuring the company and installing a new management team, two wholly-owned subsidiaries were created: Asurent Wireless Inc. and Asurent Technologies Inc. Asurent Technologies focuses on new and de-installed equipment sales, as well as test, repair, and asset recovery services for wireless networking applications.
"The downturn in the telecom equipment market has made it increasingly difficult to implement our plans to expand Asurent Technologies and align it more closely with Asurent Wireless," said Andy Salazar, Chief Executive Office of DTS. "This transaction will allow us to focus on the future success of Asurent Wireless by winding down the remaining operations of Asurent Technologies in an orderly fashion."
About DTS
DTS provides the telecommunications industry with a wide range of products and services through its wholly-owned subsidiaries Asurent Wireless, Inc. and Asurent Technologies, Inc. DTS and its subsidiaries are based in Duluth, Georgia - a suburb of Atlanta. Asurent Wireless develops and delivers network access products while Asurent Technologies has traditionally sold new and de-installed wireless networking equipment. Primary customers for both subsidiaries include domestic and international wireless service providers, telephone service companies and private wireless network users. Asurent Wireless’ products include the FlexT1® (domestic) and FlexE1™ (international) integrated network access product lines, microFlexTM cross connect switch and InterFlexTM. DTS is 51% owned by Wi-LAN Inc. For more information about DTS and its products, call 1-800-FLEX-DTS (1-800-353-9387) or visit the corporate Web site at www.asurent.com.