ADC Advances Its Rapidly Growing Fiber-Optic Components Business With Acquisition of IBSEN Micro Structures.

Business Editors

MINNEAPOLIS and COPENHAGEN, Denmark--(BUSINESS WIRE)--May 5, 2000

ADC Acquires the Leader in Phase Masks - a Key Enabling Fiber-Optic

Technology; Plans to Leverage Acquisition into Production

of Innovative Fiber-Optic Components

ADC (Nasdaq:ADCT, www.adc.com), a leading global supplier of network equipment, software and integration services for broadband, multiservice networks, today announced its acquisition of IBSEN Micro Structures (www.ibsen.dk), a photonics company focused on development and production of high-performance optical components and tools such as Phase masks, fiber Bragg grating devices and the "DWDM Switch Processor(TM)" - a next-generation, integrated optics platform. IBSEN, based in Copenhagen, Denmark, is the leading provider of Near Field Holographic phase masks - a critical component for the production of Distributed Feed Back (DFB) lasers, fiber Bragg grating and integrated optics devices.

The acquisition is valued at approximately $80 million and will be accounted for using the purchase method. ADC expects to take a one-time charge for purchased research and development expense, the amount of which has not been determined. Excluding the one-time charge, ADC expects the acquisition to be marginally dilutive to earnings per share in fiscal year 2000 and accretive thereafter. ADC expects to close this cash transaction by May 31, 2000, subject to customary closing conditions.

"IBSEN and its highly skilled employees will add significant capabilities to ADC's rapidly growing fiber-optic components business," said Lynn Davis, senior vice president of ADC and president of ADC's Broadband Connectivity Group. "IBSEN's strong R&D commitment in the field of integrated and diffractive optics is aimed at developing efficient processes and products to control light waves and enabling high-volume manufacturing of several key components for the all-optical network. We are particularly excited about their development of the next-generation of integrated optics - a cost-effective platform of combining more functionality onto a single piece of glass."

"IBSEN and its employees are pleased to join ADC and advance its progress in becoming a global leader in fiber-optic components," said Torben Jacobsen, CEO of IBSEN Micro Structures. "IBSEN was established for the purpose of transforming the innovative technologies of integrated and diffractive optics into commercially successful products. IBSEN has already established the leading position with its Phase masks and plans to launch a number of new innovative optical products in the years ahead."

Using the technical advantages of holography and micro-lithography, IBSEN Phase masks are a powerful tool for fabrication of in-fiber and waveguide Bragg gratings, which are a critical component to ADC's current DWDM (dense wavelength division multiplexing) product line. In addition to manufacturing Phase masks, IBSEN produces fiber Bragg gratings for a wide range of applications, including filters for DWDM modules, gain flattening filters for fiber amplifiers and stabilizers for pump laser diodes.

IBSEN has manufactured the largest commercially available Phase mask with a grating size of 4" x 4". This Phase mask is for replication of gratings over a large area, which opens new opportunities in the field of integrated optics. This critical expertise is paving the way for the development of IBSEN's "DWDM Switch Processor(TM)" - a silica-on-silicon platform that will pack more functionality onto a cost-effective single substrate. The rapidly growing market in optical components is driving the development of integrated optics - devices that provide high functionality at low cost, on a single silicon substrate - which in turn will help speed the development of the all-optical network.

About ADC

ADC Telecommunications, Inc. is a leading global supplier of network equipment, software and integration services for broadband, multiservice networks that deliver data, video and voice communications over telephone, cable television, Internet, broadcast, wireless and enterprise networks. ADC's broadband, multiservice network solutions enable local access, high-speed transmission and software management of communications services from service providers to consumers and businesses over fiber-optic, copper, coaxial and wireless media. Headquartered in Minneapolis, Minnesota, ADC has approximately 14,400 employees around the world and annual sales of $2.1 billion. ADC's stock is included in the Standard & Poor's 500 Index and the Nasdaq-100 Index. For additional information, visit our Web site at www.adc.com.

About IBSEN Micro Structures

IBSEN Micro Structures A/S (www.ibsen.dk), a photonics company focused on delivering high-performance optical components and tools such as Phase masks, fiber Bragg gratings and custom designed integrated optical components. IBSEN's customers are suppliers of fiber-optic components and systems throughout the world. IBSEN is located in Farum, northwest of Copenhagen, Denmark. Additional facilities are at Riso National Laboratory as well as at the Mikroelektronik Centret (MIC) and COM at the Technical University of Denmark.

Cautionary Statement under the Private Securities Litigation 

Reform Act Of 1995

Any forward-looking statements contained herein, including statements regarding earnings per share dilution, reflect management's current expectations or beliefs. ADC Telecommunications cautions readers that future actual results could differ materially from those in forward-looking statements depending on the outcome of certain factors, including the risks and uncertainties identified in Exhibit 99-a to ADC's Report on Form 10-K for the fiscal year ended October 31, 1999.