Aastra Technologies Limited

Aastra Technologies Limited

May 23, 2006 16:01 ET

Aastra to Sell Digital Video Business to Harris Corporation

TORONTO, ONTARIO--(CCNMatthews - May 23, 2006) - Aastra Technologies Limited (TSX:AAH) is pleased to confirm today that it has entered into an agreement with Harris Corporation (NYSE:HRS) based in Melbourne, Florida to sell its Aastra Digital Video (ADV) business unit. The acquisition of the ADV group by Harris is subject to customary closing conditions and is expected to close in the second quarter of 2006. The net purchase price is expected to be approximately $34.8 million USD (CDN $39 million at current exchange rates), subject to customary closing adjustments.

Based in Bridgewater, New Jersey, ADV develops, supports and markets digital video networking products, including encoders, decoders and multiplexers for video distribution over wide-area networks and broadcast media. Acquired from Lucent Technologies in 2001, ADV continues to lead the market in developing best-in-class digital video equipment. With significant investments in research and development and a streamlined and focused business, ADV is experiencing record core product growth while remaining profitable.

"Through organic growth and acquisitions, Aastra has become increasingly focused on Enterprise Communications equipment and we are planning to focus and grow in this market" said Francis Shen, Chairman & Co-CEO of Aastra. "This sale to Harris will allow the Digital Video group to build on its previous successes and achieve its full potential in the marketplace."

TD Securities Inc. acted as exclusive advisor to Aastra with respect to this transaction.

About Aastra Technologies Limited

Aastra Technologies Limited (TSX: "AAH"), headquartered in Concord, Ontario, Canada, develops and markets products and systems for accessing communication networks. Aastra's products include a full range of residential and business telephone terminals, Enterprise Private Branch Exchanges (PBX), network access servers and high quality digital video gateways. Aastra serves the majority of telephone companies and certain cable operators and broadcasters in North America and Europe, with a growing presence in South America and Asia. For more information on Aastra, visit our Web site at http://www.aastra.com.

This press release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements include statements of plans, objectives, strategies and expectations. The words "anticipate," "believe," "estimate" and "expect" and similar expressions are intended to identify forward-looking statements. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations are included in the reports filed by Aastra with securities regulatory authorities in Canada. Aastra disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The Toronto Stock Exchange has neither approved nor disapproved of the information contained in this statement.

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