Workday 10 Report

On February 10, 2006, Nortel and Garnett & Helfrich Capital announced an agreement to transform Nortel’s BSSBU into a well capitalized and free standing private company (Blade Network Technologies, Inc.) singularly focused on serving the network infrastructure requirements of the rapidly growing blade server market.

February 24, 2006 marked the 10th workday for Blade Network Technologies; BLADE in short.
How did we fare? And, what did we accomplish?

Our first 10 days were undoubtedly very long, extremely hectic, full of challenges, and extremely productive. Following is a list of what we accomplished during this period:

• Set up our legal business entities in U.S. & Canada
  
• Completed our Tax registrations in every country where we have employees – U.S., Canada, U.K, Germany, and Australia
  
• Obtained relevant GST/VAT permits/exemptions from Governments around the world
  
• Successfully transferred Nortel BSSBU employees to BLADE
  
• Obtained INS authorization to transfer the remaining employees working on H1-B visas from Nortel to BLADE
  
• Added new employees across multiple functions (Sales, Finance, Operations, Engineering, Customer Support, General Admin)
  
• Successfully made payroll for all our employees stationed around the world - U.S., Canada, France, Germany, UK, and Australia
  
• Turned on benefits (Health, Vision, Dental) for all our employees
  
• Executed a multi-year lease agreement for our New HQ facilities located at 2350 Mission College Blvd., Santa Clara, CA
  
• Executed a multi-year lease agreement for our Canadian Subsidiary (Blade Network Research; BNR in short) located at 350 Terry Fox Drive, Kanata Technology Park, Ottawa
  
• Successfully transferred all transactional relationships from our customer’s 9 hub locations to BLADE
  
• Our new ERP systems handled daily shipments, invoicing and purchasing activities with 100% accuracy
  
• Finalized design and layout of our three HQ labs (Hardware, Software, & Test) involving 75 racks of equipment and over 20 test benches
  
• Commenced tenant improvements to our new HQ facilities
  
• Brought up our mail servers
  
• Provided new laptops to all our employees
  
• Issued a new Manufacturing Planning Schedule to Solectron to allow BLADE to better serve its customers
  
• Improved our supply commitments to our customers
  
• Conducted a major training event for over 400 of our customer’s pre-sales engineers and partners
  
• Completed relocation of our Level 3 Technical Support Center from California to Texas by workday 5 (a full week ahead of plan!)
  
• Finalized our POR commitments to our customers
  
• Executed commercial agreements with our Contract Manufacturers so as to ensure supply continuity for our customers
  
• Placed an order for a 50 Ton Air Conditioning Plant for our HQ labs
  
• Ordered a new Temperature Chamber for our Design Maturity Labs in Ottawa
  
• Fixed two customer escalations in record time;
  
  and
  
• Prioritized our work plan for the next 10 days.

Thank you for your patience and support, as BLADE readies itself to become your most trusted supplier of Network infrastructure for blade server systems.

I look forward to sharing additional information on our progress with you in a few weeks.