ADC Teledata and Telsul Telecomunicacoes Announce the Establishment of TTT do Brasil S.A.

MINNEAPOLIS--(BUSINESS WIRE)--Jan. 6, 1999--ADC Teledata, a business unit of ADC Telecommunications, Inc. (NASDAQ:ADCT; www.adc.com) and Telsul Telecomunicacoes S.A. (Brazil) today announced the establishment of Teledata Telsul Telecomunicacoes ("TTT") do Brasil, S.A.

The joint company has been established to address the growing demand for ADC Teledata's BroadAccess(TM) flagship digital loop carrier products in Brazil, and to create a capability for local, turnkey project implementation. BroadAccess, a state-of-the-art digital loop carrier (DLC), is designed to connect clusters of up to hundreds of new subscribers to the telephone network utilizing synchronous digital hierarchy (SDH) and plesiochronous digital hierarchy (PDH) transmission technologies over a fiber-optic infrastructure. BroadAccess provides carriers with integrated solutions for both voice and high-speed data services delivery. BroadAccess is an optimal delivery vehicle for networks experiencing rapid growth, such as that occurring in telecommunications networks in Brazil.

TTT's assembly, manufacturing, integration and customer support facilities will be headquartered in the city of Porto Alegre, the capital of the state Rio Grande do Sul. Both ADC Teledata and Telsul have already delivered and installed more than 45,000 lines for Companhia Riograndese de Telecomunicacoes (CRT), the local telephone company of the state of Rio Grande do Sul.

With the current growth rate of telecommunications networks, the Brazilian government and service providers expect that hundreds of thousands of new DLC lines will be deployed throughout Brazil over the next several years. This growth is further stimulated by privatization and acquisition activity within the telecommunications environment of Brazil. That activity has introduced international players into the market, including Telefonica Internacional, the international subsidiary of the Spanish telecom operator, which owns CRT, and which has recently acquired the largest telephone company in Brazil, TELESP.

"TTT will serve as our local platform for fulfilling the growing demand for BroadAccess," said Yossi Atsmon, president of ADC Teledata. "TTT will offer superior customer support and installation services, cutting the response time to any kind of technical failure from days -- or even weeks -- to hours. Increasing local content will enable us to improve our cost/performance competitive edge for this market."

"We intend to create a local technology center based on ADC Teledata's know-how and its state-of-the-art technology that will enable us to better serve our customers," said Antoninho Nicolodi, president of Telsul. "The local assembly, manufacturing and integration facility in Brazil will help `tropical-ize' the product for the Brazilian market."

TELSUL Telecomunicacoes is reported to be the largest telecommunications company in the state of Rio Grande do Sul with US$25.5M sales turnover. The company provides turn-key projects for telephone companies, system design and integration and technical support for its clients. Telsul has been awarded a special prize for the best company in installations and services in 1998 by the Anuario Telecom magazine, which is a publication that has ranked all the companies involved in the telecom market in Brazil. Telsul is also the main distributor of networking products of diverse suppliers within the state of Rio Grande do Sul.

ADC Teledata designs, develops, manufactures, markets and supports advanced wireline and wireless access network equipment for telecommunications carriers worldwide. ADC Teledata's products enable carriers to enhance the capacity, reach and functionality of their access network that connects subscribers to the local exchange also known as the local loop. By using ADC Teledata's products, carriers can quickly and cost effectively deploy new networks over fiber or copper cable and radio signals, and upgrade their existing infrastructure in terms of capacity, services and quality. ADC Teledata supplies its advanced access products to major telecommunications network operators in Europe, South and Central America, Africa and the Pacific Rim.

ADC Telecommunications, Inc. 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. More information about ADC Telecommunications, Inc., and its business units, products and technologies is available at its web site: http://www.adc.com.

Note to Editors:

Teledata Communications, Herzlia, Israel, was acquired by ADC Telecommunications in November of 1998.