ADTRAN's Growth Enables Formation of Divisional Structure; Division Vice Presidents Take On Expanded General Manager Duties.

HUNTSVILLE, Ala.--(BUSINESS WIRE)--Aug. 9, 1999--

ADTRAN, Inc. (NASDAQ:ADTN), designer and manufacturer of advanced transmission products, announced today the promotion of two key officers, reflecting a new divisional structure organized to match the two key segments of the telecommunications market - carrier and enterprise networks. In those markets, ADTRAN currently holds leading market shares in current technologies used to expand the local telephone service loop, including HDSL/T1, Frame Relay/Digital Data Service and ISDN Extension.

Retaining and expanding its leadership position in all facets of the telecommunications market is the top priority for ADTRAN executives. Therefore, the company is forming two divisions, Carrier Networks and Enterprise Networks, in which responsibility for separate engineering, sales, marketing and support teams will fall under the direction of two key executives. In support of the new structure, Mark Smith, Chairman and CEO of ADTRAN, Inc., announced the appointment of Tom Stanton and Danny Windham to Vice President and General Manager of their respective divisions.

In the past, ADTRAN's customer base primarily consisted of Regional Bell Operating Companies (RBOCs) and independent telephone companies, such as GTE. However, the service provider market has diversified, and now includes an assortment of industry players that includes Incumbent Local Exchange Carriers (ILECs), Competitive Local Exchange Carriers (CLECs), Internet Service Providers (ISPs) and a number of other Integrated Communications Providers (ICPs).

Now, ADTRAN has formed the Carrier Networks Division to address this traditional market with Tom Stanton as the General Manager. Stanton has served as Vice President of Marketing for the carrier side of the business for four years. One recent achievement for Stanton and his team includes ADTRAN being selected as primary vendor for HDSL equipment by one of the country's largest RBOCs. This announcement solidly positioned ADTRAN as the HDSL market share leader.

"It's been quite a challenge to keep up with the rapid evolution of the carrier market. The atmosphere now is especially exciting with the emergence of the competitive carriers," Stanton said. "I look forward to helping ADTRAN maintain its leadership in the market and appreciate this tremendous opportunity."

ADTRAN also provides equipment solutions for the customer end of service provider networks with a division dedicated to that market segment. The Enterprise Networks Division provides access equipment to the end users of telephone services - primarily businesses, telecommuters and home office customers. Since this division's inception in the early 1990s, it has seen record-setting growth to become the enterprise market leader it is today. In addition, the innovative ADTRAN approach to channel sales in this market has now become a benchmark for the industry.

To focus on this side of the business, ADTRAN has developed the Enterprise Networks Division with Danny Windham as General Manager. Windham joined ADTRAN ten years ago to establish the ADTRAN marketing department, and has served as Vice President of Marketing for the enterprise branch of the company for four years. In the past year alone, the Enterprise Networks Division saw an impressive 27% increase in product sales under the direction of Windham.

"We saw an opportunity to expand the company's expertise into the enterprise market, and we quickly became a key player there," Windham said. "This new position as general manager will allow me to be even more instrumental in defining our leadership opportunities in this dynamic industry."

Before joining ADTRAN, Stanton was senior director of marketing for E.F. Johnson Company, the third-largest U.S. manufacturer of two-way communications equipment. His career also includes serving as Vice President of Engineering and Marketing for Transcript International, as well as sales management, business development and software engineering positions with AmeriCom Corporation, a developer of SMR communications systems. He received his Bachelor of Science degree in Computer Engineering from Auburn University. Stanton is married and currently resides in Huntsville.

Windham originally joined ADTRAN as co-founder of Processing Telecom Technologies (PTT), a subsidiary of ADTRAN that supplied analog and digital telephone network simulation products. When PTT and ADTRAN merged in 1989, Windham assumed responsibility for marketing activities for the combined companies. In 1995, he was promoted to Vice President of Marketing. Other prior associations include serving as an engineering manager at Motorola UDS and as a design engineer at ITT Telecommunications. Windham holds a Bachelor of Science degree in Electrical Engineering from Mississippi State University and a Master's Degree in Business Administration from Florida Tech. Windham is married with two children and currently resides in Huntsville.

About ADTRAN

Established in 1985, ADTRAN, Inc. is a leading provider of network deployment and access solutions for delivering today's digital telecommunications services over existing copper infrastructures.

Today, ADTRAN technologies support more than two-million local loops worldwide. More than 500 ADTRAN products support all major digital technologies, including T3, T1, E1, Frame Relay, DDS, HDSL, xDSL, ISDN, and wireless transport. In the carrier network and enterprise markets, ADTRAN produces a complete end-to-end solution that provides the greatest network efficiency and lowest possible telecommunications costs.

According to Dataquest and IDC, ADTRAN holds revenue-leading positions in the Frame Relay/DDS, ISDN Extension and HDSL/T1/E1 network and access markets. ADTRAN customers include the Regional Bell Operating Companies, interexchange carriers, GTE, domestic independent service providers, corporate end users, international customers and original equipment manufacturers.

For more information, contact the company at 800/9ADTRAN (800/923-8726), 256/963-8000, or via e-mail at [e-mail]. On the web, visit www.adtran.com.