ADC Telecommunications Announces Investment in Phasecom, Inc., Manufacturer of Broadband Wireless Solutions.

MINNEAPOLIS--(BUSINESS WIRE)--Oct. 7, 1999--

ADC Telecommunications, Inc. (Nasdaq: ADCT; www.adc.com) today announced it has invested in Phasecom, Inc., a privately-owned, Cupertino, California-based manufacturer of voice and data communications products for interactive multimedia applications and telecommunications over broadband, cable TV and wireless networks. Under terms of the agreement, ADC may attain exclusive OEM product arrangements for Phasecom's wireless modem products for select customers worldwide. In addition, John Griffin, president of ADC's Broadband Wireless Group, will represent ADC as a member of Phasecom's Board of Directors.

Wireless delivery of voice and data services continues to become an attractive method for communications service providers to quickly gain access to homes and businesses. The growing acceptance of wireless delivery for voice and data services is fueling growth in the wireless broadband equipment markets. According to market research firm, Ovum, the broadband wireless equipment market will grow from $200 million in 1999 to about $7 billion by 2005.

"This investment further strengthens our ongoing relationship with Phasecom and provides an outstanding foundation from which to grow ADC's broadband wireless business," said Griffin. "This market segment is expanding rapidly as service providers adopt wireless as an attractive medium to deliver voice and data services to their business and residential customers. The CellSpan broadband wireless platform, coupled with Phasecom's modem technology, positions ADC to seize upon this industry growth." ADC Invests in Phasecom - Page 2

"We have been a partner of ADC for some time and are pleased that ADC has provided such a strong investment in our company," said Davidi Gilo, chief executive officer of Phasecom. "The broadband wireless marketplace offers tremendous growth, and we believe that our relationship with ADC will successfully position our wireless networking solutions throughout the world."

ADC will incorporate Phasecom's wireless modem products into its CellSpan multichannel multipoint distribution service (MMDS). Phasecom's line of high-speed wireless modem systems provides connectivity from personal and business computers to wireless networks. When coupled with ADC's CellSpan MMDS platform, the solution offers full, two-way voice and data services over wireless networks to support applications such as Internet and Intranet access, Virtual Private Networks (VPNs), Voice-over-Internet Protocol (VoIP) and voice telephony services. CellSpan is the industry's first two-way MMDS delivery system to offer end-to-end access and transport capabilities.

In addition to ADC's total-system leadership, the company offers nearly 20 years of RF and wireless network design and integration experience to help service providers shorten time to market for MMDS and LMDS services. ADC's broad spectrum of system integration services, developed to support system network needs, includes technical consulting and design, implementation, reliability, performance and training services. These services significantly reduce a service provider's resource requirements for implementing large-scale projects. The systems integration arm of ADC employs approximately 1,300 integration experts in various locations across North America.

About Phasecom, Inc.

Phasecom, Inc., based in Cupertino, Calif., is a privately held company specializing in the development and manufacture of wideband wireless modems, headend equipment and software for Internet access and other applications including VoIP and VPN. They may be reached through www.phasecom-inc.com, [e-mail], or by calling [phone].

About ADC Telecommunications

ADC Telecommunications, Inc., is a leading global supplier of voice, video and data systems for telephone, cable television, Internet, broadcast, wireless and private communications networks. ADC's systems enable local access and high-speed transmission of communications services from providers to consumers and businesses over fiber-optic, copper, coaxial and wireless media. Headquartered in Minneapolis, Minnesota, ADC has approximately 10,100 employees around the world and annual sales of $1.6 billion. ADC is an S&P 500 company. For additional information, visit ADC's Web site at www.adc.com.

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-Q for the fiscal quarter ended April 30, 1999.

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