November 27, 1996 5:30 PM ET
Intel takes out stake in MRV
By Margaret Kane

  Firming up its foothold in the LAN hardware arena, Intel Corp. has purchased 200,000 shares of MRV Communications Inc., for $4 million, and obtained the right to buy 500,000 more shares.

If Intel buys all of the available shares, it will own about 3 percent of the Chatsworth, Calif., company.

Intel has already worked with MRV on LAN switching products, particularly MRV's MegaSwitch II workgroup switch.

"We anticipate that this relationship will strengthen. Both sides have invested heavily to promote cooperation between the two companies, and both sides are very interested in promoting high-performance switching," said MRV CEO Noam Lotan. "This investment is only a step."

Lotan said there are no plans for Intel to take a greater interest in the company beyond the additional 500,000 shares.

MRV, which has about 340 people, had sales of $22 million in the third quarter, ended Sept. 30.

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