Aastra Technologies Limited

Aastra Technologies Limited

December 16, 2008 16:01 ET

Aastra Provides Update on Acquisition of Ericsson's Enterprise Communications Business

TORONTO, ONTARIO--(Marketwire - Dec. 16, 2008) - Aastra Technologies Limited (TSX:AAH) has been removed from the list of reporting issuers in default by the Ontario Securities Commission as a result of Aastra's recent filing of its Business Acquisition Report ("BAR") in connection with its previously announced acquisition of Ericsson's Enterprise Communications Business (the "Acquisition").

The BAR excludes the operations in South Africa relating to the LG-Nortel product portfolio (the "LG-Nortel Related Operations") as Ericsson and Aastra have mutually agreed that it would be in the best interests of all parties if such operations were returned to Ericsson and excluded from the Acquisition.

Ericsson and Aastra have also reached an agreement on all of the net asset values contained in the closing balance sheet relating to the Acquisition (the "Closing Balance Sheet") except for one matter which has been referred to an independent auditor for final determination.

Ericsson and Aastra have agreed that the Closing Balance Sheet and the return of the LG-Nortel Related Operations shall result in a net cash transfer of $8.9 million from Ericsson to Aastra before the end of the fourth quarter of 2008.

Finally, Aastra has also completed its previously announced employee restructuring relating to the Acquisition and has incurred a restructuring expense of $7.8 million in its fourth quarter of 2008 on this matter.

About Aastra Technologies Limited

Aastra Technologies Limited (TSX:AAH), is a global company at the forefront of the Enterprise Communication market. Headquartered in Concord, Ontario, Canada, Aastra develops and delivers innovative and integrated solutions that address the communication needs of businesses small and large around the world. Aastra enables Enterprises to communicate and collaborate more efficiently and effectively by offering customers a full range of open standard IP-based and traditional communications networking products, including terminals, systems, and applications. For additional information on Aastra, visit our website at http://www.aastra.com.

This press release may contain forward-looking information or forward-looking statements within the meaning of applicable securities legislation ("forward-looking statements"). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, potentials, future events or performance are not statements of historical fact, but are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Aastra, or developments in Aastra's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the factors set out in Aastra's public filings with securities regulators from time to time. It is important to note that: unless otherwise indicated, forward-looking statements in this press release describe Aastra's expectations as of the date of this press release; Aastra cautions readers not to place undue reliance on the forward-looking statements in this press release as actual results may differ materially from expectations if known and unknown risks or uncertainties affect Aastra's business, or if estimates or assumptions prove inaccurate. Therefore, Aastra cannot provide any assurance that forward-looking statements will materialize and Aastra assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or other reason.

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