ADC Telecommunications Acquires Phasor Electronics.

MINNEAPOLIS--(BUSINESS WIRE)--Jan. 19, 1999--

-- Acquisition further expands ADC's international sales to European cable television operators --

ADC Telecommunications, Inc. (NASDAQ: ADCT; www.adc.com), today announced that it has acquired Phasor Electronics, an Austria-based manufacturer of radio frequency (RF) amplifiers, in a transaction valued at approximately $9 million.

The purchase of Phasor provides ADC with an established international customer base as well as the critical local engineering and support services required to compete in the rapidly growing European amplifier market. Phasor's customer base includes major European cable television operators and original equipment manufacturers (OEMs). Phasor will be rolled into ADC's residential broadband group.

Located in the "last mile" of hybrid fiber/coax (HFC) networks, RF amplifiers are used to enhance voice, data and video signals sent from a headend or central office to residential and commercial customers. In most HFC networks, one RF amplifier is required for every 20 to 30 homes. Currently, market projections estimate the potential of the worldwide broadband amplifier market to approach between $1.3 and $1.5 billion by 2001. Of that total, European revenues represent approximately 30% and are expected to outpace worldwide growth due to rapid market liberalization.

"With the inclusion of the Phasor amplifier product line, ADC delivers a powerful end-to-end, European video transport solution," said Robert Burkholder, vice president and general manager of RF transport systems in ADC's residential broadband group. "Phasor opens doors for additional ADC products to enter the European market, while ADC brings the strength Phasor needed to greatly expand its market presence."

Phasor RF amplifier products feature an excellent price to performance ratio, which enables cable television operators to economically deliver high-quality signals to end-users. Phasor's products are designed for easy customization to meet unique customer requirements, as well as to meet all required European cable television standards. Additionally, the Phasor product line -- including the Universal Amplifier, the HA862, Max037 and Max236 -- complements ADC's existing Pathworx(TM) family of cable RF amplifiers.

"ADC continues to expand its global market presence through strategic acquisitions such as Phasor Electronics today and Teledata Communications in November of 1998," said William J. Cadogan, chairman and CEO of ADC Telecommunications. "With the speed of deregulation and liberalization in the European market, ADC is in position to further broaden its customer base for our products and services."

Phasor was originally founded in 1978 as a subsidiary of Philips Electronics. Philips sold the Phasor business about one year ago to BUCE Industries, a privately held investment and management concern in Europe. Based in Klagenfurt, Austria, Phasor's 1998 revenues approached $8 million. The company's products are ISO 9001 certified.

ADC Telecommunications, Inc. (NASDAQ: ADCT) is a leading global supplier of voice, video and data systems and solutions for telephone, cable television, Internet, broadcast, wireless and private communications networks. ADC's systems and solutions enable local access and high-speed transmission 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 8,000 employees around the world and annual sales of $1.4 billion. For additional information, visit our Web site at www.adc.com.

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Cautionary statement under the Private Securities Litigation Reform Act of 1995

Any forward-looking statements contained herein 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 to ADC's Report on Form 10-K for the fiscal year ended October 31, 1997.