ADC Updates Third Quarter 2002 Guidance; Lowering Breakeven Point Further To Reach Profitability As Soon As Possible.

Business Editors

ADC (Nasdaq:ADCT, www.adc.com) today announced that sales and pro forma earnings per share for the third fiscal quarter ending July 31, 2002 are now expected to be lower than its guidance announced on May 22, 2002. As a result of further industry-wide reductions in telecommunications capital spending, ADC now expects sales in the third quarter of 2002 to be approximately $235-245 million. ADC also expects pro forma diluted earnings per share in the third quarter to be a $0.05 to $0.07 loss, which is just slightly higher than its May guidance. Despite the revenue decline, strong expense reductions mitigated most of the impact on earnings. Pro forma earnings exclude non-cash stock compensation expenses, non-recurring charges/credits and restructuring charges, however, do include certain one-time operating charges. As there are still several weeks to go in the quarter, the current outlook remains subject to change in a very dynamic environment.

In response to current conditions, ADC is targeting to further lower its breakeven point toward $250 million in quarterly sales from approximately $300 million. ADC's goal is to reach this point by October 31, 2002.

"Although we are holding and, in some cases, gaining market share in the face of reductions in telecommunications capital spending, we are not satisfied with our expected third quarter results," said Rick Roscitt, chairman and CEO of ADC. "Over the past 18 months, we have made great progress in rapidly lowering our cost structure in this difficult downturn. Given continued industry weakness, we are redoubling our efforts to further gain market share in our key products, continue to lower our breakeven point and further strengthen our balance sheet. With very little debt and several hundred million dollars of cash on hand, ADC has one of the strongest balance sheets in the industry. We will continue taking those actions that help us achieve our goal of returning to profitability as soon as possible."

"While we were directionally correct in our May guidance regarding lower sales and earnings, we were surprised by the additional weakness in the third quarter after our sales had stabilized in ADC's first half," continued Roscitt. "We remain steadfast in our belief that those companies, like ADC, that continue to gain market share, lower breakeven points and strengthen balance sheets in this difficult environment will prosper sooner in a recovery."

In further lowering ADC's breakeven point and returning to profitability as soon as possible, the following actions are underway:

-- Consolidation and closing of facilities;

-- Increased outsourcing;

-- Divestiture of product lines with low revenue volumes and high operating losses;

-- Reduction of work force; and

-- Cutting nonessential operating expenses.

Many of these actions are expected to result in non-recurring and restructuring charges in amounts that have not yet been determined.

About ADC

ADC is The Broadband Company(TM). ADC tailors high-quality, custom solutions of network equipment, fiber optics, software and systems integration services that enable communications service providers to deliver high-speed Internet, data, video and voice services to consumers and businesses worldwide. ADC (Nasdaq:ADCT) has sales into nearly 100 countries and is included in the Standard & Poor's 500 Index and the Nasdaq 100 Index. Learn more about ADC Telecommunications, Inc. at www.adc.com.

Cautionary Statement under the Private Securities Litigation 

Reform Act of 1995

All forward looking statements contained herein, particularly those pertaining to ADC's expectations or future operating results, reflect management's current expectations or beliefs and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. ADC Telecommunications cautions readers that future actual results could differ materially from those in forward-looking statements depending on the outcome of certain factors. All such forward-looking statements are subject to certain risks and uncertainties, including, but not limited to, overall demand for ADC's products or services; the demand for particular products or services within the overall mix of products sold, as our products and services have varying profit margins; the uncertain impact of recent turmoil in the telecommunications service provider industry, as the majority of our revenues are derived from telecommunications service providers; new competition and technologies; increased costs associated with protecting intellectual property rights; ADC's ability to complete our restructuring initiative and streamline our operations successfully; retention of key employees; pressures on the pricing of the products or services ADC offers; and other risks and uncertainties, including those identified in Exhibit 99-a to ADC's Report on Form 10-K for the fiscal year ended October 31, 2001. ADC disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.