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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.”











