SAN JOSE, Calif., April 1, 2002 (PRIMEZONE) -- ONI Systems Corp. (Nasdaq:ONIS), a leading provider of optical telecommunications systems, today announced that rival Nortel Networks has agreed to dismiss all claims related to four patents purportedly infringed by ONI Systems. Nortel's original suit was filed on March 10, 2000, just prior to ONI's filing for its initial public offering. Throughout the process, ONI has vigorously countered all of Nortel's claims and will continue to defend its position regarding the sole remaining Nortel patent at issue.
ONI Chairman, President and CEO Hugh Martin stated, "I am gratified, but not surprised that Nortel has seen fit to drop all infringement claims related to four of the five patents. From the outset, ONI contended that this lawsuit was without merit. Our customers see the unique benefits and value delivered by ONI solutions and purchase on that basis. Today's announcement validates our position and affirms that ONI succeeds through innovation -- not imitation."
Martin concluded, "We will continue to defend ONI against the sole remaining patent in the lawsuit and are confident that we will prevail."
About ONI Systems
ONI Systems (Nasdaq:ONIS) develops, markets and sells optical networking equipment specifically designed to address bandwidth and service limitations of regional and metropolitan networks. Our products allow communication service providers to rapidly build high-capacity networks that are flexible, scalable and able to support multiple services on a single platform. ONI's headquarters is located at 5965 Silver Creek Valley Road, San Jose, CA 95138. For additional information about ONI and its products, visit the company Web site at www.oni.com.
ONI Systems, ONI, the ONI logo, ONLINE, OPTX, OLMP and ONWAVE are trademarks or registered trademarks of ONI Systems Corp. All other trademarks are the property of their respective owners.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by this section. These forward-looking statements include statements by Hugh Martin regarding the outcome of litigation with Nortel Networks. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to, the inherent uncertainty of litigation, the risk of an adverse ruling which could prevent ONI Systems from selling its products or require ONI Systems to pay substantial damages to Nortel Networks and the risk that the litigation will be resolved by settlement which requires ONI to make substantial payments to Nortel Networks. These and other risks and uncertainties are described in ONI Systems' filings with the Securities and Exchange Commission, including ONI Systems' annual report on Form 10-K for the year ended December 31, 2001 and other documents on file with the SEC.