ADC and E/O Networks Partner to Develop HDSL-Based Digital Local Loop Solutions.

MINNEAPOLIS--(BUSINESS WIRE)--March 25, 1997--

Partnership enables mutual telco customers to further maximize

use of existing copper infrastructure

ADC Telecommunications' Network Services Division and E/O Networks today announced their partnership to jointly develop high-bit-rate digital subscriber line (HDSL)-based digital local loop solutions for mutual customers. As a result, telcos will be able to harness the copper-leveraging advantages of HDSL technology, such as faster, more economical T1 deployment, in smaller digital loop carrier systems, while pushing the remote terminal farther into the network, closer to the customer premises.

As part of the partnership, ADC is taking the HDSL technology included in its Soneplex(R) intelligent DS1 service delivery platform and creating an HDSL subassembly module that will integrate into E/O Network's fiber-optic based digital loop carrier system (FDS-1). E/O Networks, a leader in fiber-optic based digital loop carrier technology, will gain its first HDSL play in the local loop. ADC will benefit by having another means for deploying its Soneplex HDSL technology throughout the nation's networks. The first products from the partnership are expected to be announced in June.

HDSL is a transmission technology employing modems at both the carrier central office and at or near the end-user premises. The technology is widely used for T1 deployment because of its cost, time and installation labor advantages. Based on symmetric technology, HDSL provides 1.544 Mbps transmission speed both downstream and upstream.

"As the number two market provider of HDSL technology, we're excited by this opportunity to expand our customer base," said Lonnie Martin, president of ADC's Network Services Division. "Partnering with another established market leader in small digital loop carrier systems such as E/O Networks means added value to telcos as well as a consistent HDSL approach."

"This partnership to integrate ADC's HDSL technology extends the breadth of applications that our fiber-based digital loop carrier system can accommodate," said Leif Hoglund, marketing vice president of E/O Networks. "This is a customer driven partnership, and the combined offering from E/O Networks and ADC allows easier, more standardized deployment for our service provider customers."

E/O Networks' FDS-1 benefits telcos seeking first-time or improved delivery of telephone and advanced communications services to low-density subscriber areas. Features include transmission distances up to 75 miles from the central office, future services upgradeability, low installation costs, efficient powering and remote maintenance.

E/O Networks develops, manufactures and markets fiber-optic telecommunications systems for domestic and international telephone companies with low subscriber densities. E/O Networks is a privately held, venture-backed company with headquarters at 3988 Trust Way, Hayward, CA 94545-6927. Phone: [phone], fax: [phone].

ADC Telecommunications, Inc. (NASDAQ: ADCT) is a leading supplier of transmission and networking systems used to deliver voice, data and video services. The company holds a preeminent market position in physical connectivity products for wireless, fiber-optic, twisted-pair and coaxial networks. Revenues for fiscal year 1996 were $828 million. More information about ADC Telecommunications and its business units, products and technologies, is available at its site, http://www.adc.com, or by calling the company at 1-800-366-3891, ext. 3223.

CONTACT: Marketing Communications Contact:

Lynne High

ADC Telecommunications

612-946-3136

or

Investor Relations Contact:

Aimee Gallogly

ADC Telecommunications

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