ADC forms joint venture with PCS Wireless.

MINNEAPOLIS--(BUSINESS WIRE)--Dec. 14, 1995--ADC Telecommunications Inc. (ADC), announced today its intent to form a joint venture with PCS Wireless Inc., Vancouver, British Columbia.

The equally owned joint venture company will be chartered in the U.S., and will manufacture, market and sell remote antenna drivers (RADs) and remote antenna signal processors (RASPs) for use in hybrid fiber/coax (HFC) networks. The joint venture company is being capitalized at US$5 million. ADC has also agreed to purchase 5 million shares, or 15 percent, of PCS Wireless at approximately market value.

ADC will provide the joint venture with access to its manufacturing, cable television engineering and marketing resources, and PCS Wireless will transfer its established customer relationships and product development resources.

By incorporating the RAD/RASP architecture into hybrid fiber/coax networks, such as ADC's Homeworx(TM) HFC system, the joint venture will provide the quickest and most cost-effective way for personal communications services (PCS) wireless license holders to implement PCS delivery. The joint venture will provide products and support services to wireless network vendors offering new 1900 MHz systems; these RAD/RASP products will support both CDMA and PCS1900 digital air interfaces.

"As an infrastructure provider to broadband network operators, ADC is very excited about the opportunity to establish this joint venture with PCS Wireless," stated Jack Reily, vice-president of business development for ADC. "The wireless market is growing rapidly, offering the joint venture company tremendous potential for participating in the deployment of personal communications services over new or existing hybrid fiber/coax architectures. Gaining access to this technology is an important step in meeting ADC's strategic goal to increase its presence in the wireless industry."

"ADC is an ideal alliance partner with its worldwide market presence in HFC and wireless networks," said Ralph Scobie, president and CEO of PCS Wireless. "PCS Wireless's distributed antenna technology forms natural synergies with ADC's competencies, enabling the joint venture to provide customers with an integrated solution for PCS networks."

In addition to the joint venture, PCS Wireless will supply its microcell extender (MEX) and base station extender (BEX) products to ADC. The agreement grants ADC the right to market the products worldwide, as well as provides ADC with the option to manufacture the products. The MEX/BEX technology will enhance the capability of ADC's CityCell(TM) digital fiber-optic microcell system to provide service in demanding, high-usage environments.

PCS Wireless Inc., is recognized as a leader in the design of distributed antenna arrays (DAAs) for cellular and PCS telecommunications systems. Cable television network-based DAAs include the RAD/RASP platforms, targeted for outdoor wide-area use. Dedicated coax-based DAAs include base station extender (BEX) and microcell extenders (MEX), targeted for in-building use.

ADC Telecommunications Inc., is 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. Wholly owned business units include ADC Video Systems, ADC Fibermux, ADC Kentrox and AOFR. The company also operates international business units in Australia, Belgium, Canada, China, England, Mexico, Singapore and Venezuela. Estimated revenues for fiscal year 1995 were $583 million.

Homeworx is a trademark of ADC Telecommunications Inc.

CityCell is a trademark of ADC Kentrox.

CONTACT: ADC

Lynne High, 612/946-3136

or

PCS Wireless

Scott Rose, 604/689-7722