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October 1, 2001 — (WEB HOST INDUSTRY REVIEW) — Tollgrade Communications, Inc. (tollgrade.com) has announced
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that it has agreed to acquire the software assets of the MLT/LoopCare test
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system business from Lucent Technologies (lucent.com) for approximately $60 million in cash.
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LoopCare, also known as Mechanized Loop Testing, is the Plain Old Telephone
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Services (POTS) test system used universally by the Regional Bell Operating
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Companies. Tollgrade intends to combine the LoopCare software with
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Tollgrade’s DigiTest hardware to create a complete solution for testing
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today’s POTS services.
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The LoopCare-DigiTest combination also provides an economical path to
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support the emerging needs of the digital consumer. Lucent and Tollgrade
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have also entered into a supply agreement provide LoopCare solutions for the
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Digital Subscriber Line and AnyMedia market.
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“This acquisition establishes Tollgrade in the preeminent position among
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POTS test system companies,” said Tollgrade chairman and CEO Chris Allison.
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“We’re growing up from a niche player to an integrated, full-service
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provider.”
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Tollgrade and Lucent have worked together since 1998 under a multi-year
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product development, license, and authorized reseller agreement related to
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LoopCare and DigiTest. Because the DigiTest hardware is currently
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interoperable with the LoopCare software, Tollgrade’s complete POTS and DSL
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test system is immediately available for deployment.
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Added Allison, “Tollgrade can now offer a much stronger value proposition to
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Tollgrade and LoopCare customers when it comes to hardware and software
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testing products. We want to provide not only world-class POTS and consumer-
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oriented DSL testing capabilities, but evolve LoopCare/MLT so that we can
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address new challenges, such as digital voice testing. Merging Tollgrade’s
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reputation for strong customer service and value-driven pricing with the
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innovation and testing expertise of our new staff of former Bell Labs
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developers creates a very compelling system offering.”
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There are currently about 32 employees working in Lucent’s LoopCare
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business. Tollgrade intends to move the group to a facility near the current
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Liberty Corner, NJ, location by the end of 2001.
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Finally, Allison stated, “This is proving to be a solid third quarter for
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Tollgrade for at least two reasons. First, in a tough environment, we expect
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our revenue to approximate $16 million, and earnings will be approximately
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$.15, both of which are within the range that we said in our second quarter
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earnings release. And, second, we’re buying a product line that makes us a
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full consumer testing provider when combined with our DigiTest products.”
About theWHIR.com
Since 2000, The Web Host Industry Review has made a name for itself as the foremost authority of the Web hosting industry providing reliable, insightful and comprehensive news, interviews and resources to the hosting community. TheWHIR is an iNET Interactive property. For more information on iNET Interactive, visit http://www.inetinteractive.com
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