ADC Telecommunications wins major supply contract for Australian broadband network.

MINNEAPOLIS--(BUSINESS WIRE)--Feb. 27, 1995--ADC Telecommunications Inc., announced today that it has won a major contract, estimated to be worth as much as $185 million (U.S.), to supply advanced broadband technology to Optus Vision, an Australian-based consortium developing the world's first combined telephony and home entertainment service.

"The Optus Vision broadband network, currently under construction in Australia, is the first network in the world to combine broadcast video, interactive video and telephone services down a single fiber-optic/coaxial line," said Frank Anthony, chief operating officer of Optus Vision.

Optus Vision will use ADC's Homeworx(TM) access platform to transport telephone services over its hybrid fiber/coax network and ADC's broadband connectivity products in the local exchanges to terminate, distribute and cross-connect optical fiber and copper cables. In return, ADC will support Australian Industry through the involvement of local subcontractors such as Canberra-based AOFR Pty. Limited in the manufacturing, assembly and testing processes. ADC recently acquired AOFR, which will operate as an independent subsidiary and will produce ADC's full line of fiber frames, panels and outside plant enclosures in Australia.

"ADC has proven they deliver high-quality, reliable products and support services," Anthony said. "The ADC Homeworx platform is ideally suited to provide telephony services over Optus Vision's broadband network and to deliver an integrated video, voice and data package to residential and small business customers."

"This is the largest contract ADC has received to date for its Homeworx telephony system and it confirms that our broadband network development initiatives are on target to meet the needs of our customers the world over," said William J. Cadogan, chairman, president and chief executive officer of ADC Telecommunications Inc.

ADC's Homeworx access platform is currently being deployed by or has been in field trials with Ameritech, Cox Cable, Nynex, PacBell and SNET.

The Homeworx telephony system includes a host digital terminal which is installed in local exchange offices, and the Homeworx ISU integrated service unit located at or near the customer premises, depending on whether it is serving an individual residence or a multi-tenant building. The Optus Vision system will also feature a telemetry interface for monitoring and reporting the status and usage of utility services.

The ability of the Homeworx host digital terminal to deliver a large number of voice circuits in both downstream and upstream carriers provides significant economic and network flexibility benefits to service providers. In addition, the service flexibility of the Homeworx platform's ISU allows network planners to meet their future service requirements for serving single-family, multi-tenant and business customers in an integrated services environment.

Optus Vision began deployment of its broadband cable network in Sydney this month. By the end of 1998, it expects to be able to provide telephony, home entertainment and interactive services to more than 50 percent of Australian homes.

Optus Vision is a joint venture comprising Optus Communications, Continental Cablevision and Publishing and Broadcasting Limited.

Optus Communications is Australia's first private phone company, delivering competitive long distance, mobile, business network and enhanced communications services to the Australian market.

Continental is the third largest Multiple Systems Operator (MSO) in the U.S. with over 3 million subscribers. It is also currently involved in several other large broadband ventures in Argentina and Singapore.

ADC Telecommunications Inc. (NASDAQ Symbol: ADCT), designs, manufactures and markets a wide variety of transmission, networking and broadband connectivity products used by telephone companies, other public network providers (such as wireless, broadcast and cable TV operators) and private voice, data and video network providers. The company also operates international business units in Australia, Belgium, Canada, China, England, Mexico, Singapore and Venezuela. Fiscal year 1994 revenues were $448.7 million.

CONTACT: ADC

Greg Wortman, 612/946-3104 or

Aimee Gallogly (Finance/Investors), 612/946-3338