Alcatel's DynaMiTe Leaves the Lite-Weights Behind; Multistandard Support is the Key to Future-Proof ADSL.

DALLAS--(BUSINESS WIRE)--June 14, 1999--

Alcatel's (NYSE:ALA) DynaMiTe(TM) ADSL chipset is today confirmed as the most interoperable G.lite chipset on the market, but DynaMiTe also offers the greater benefit of future proofing ADSL CPE and CO equipment. As ADSL services mature and the "heavy users" are identified, a range of ADSL services will be offered at premium and discounted rates.

The G.lite ADSL standard, with the aid of the UAWG, has been introduced as the solution for consumers and will more than satisfy the needs of many domestic users. For SOHO and small business customers however, demand may outstrip the 1.5 Mbps available from G.lite and move into the full-rate or G.dmt bitrate zone of up to 8 Mbps.

Alcatel's DynaMiTe ADSL chipset is the market leader and supports both the G.lite and G.dmt standards with only a software change. The micro controller embedded in the DynaMiTe digital modem chip allows service providers to upgrade their users from G.lite to full-rate on demand, without having to upgrade the hardware, avoiding both a truckroll and the major expense of replacing hardware.

"The ability to offer a migration path from G.lite to a full ADSL service portfolio will be important to any carrier wishing to stay competitive in this market," said Shannon Pleasant, Senior Networking Analyst for Cahners' Instat Group. "The user community that represents the greatest value to carriers is also the group that will demand the flexibility of service that a full-rate solution provides."

"The flexibility of multistandard compliance is one of DynaMiTe's key strengths," said Robert Bury, xDSL Product Manager, Alcatel Microelectronics. "No carrier wants to install equipment that may need to be replaced in a matter of months. Investing in a G.lite only solution is investment in the very short-term."

About DynaMiTe

Alcatel's DynaMiTe ADSL chipset has been installed by the majority carriers in the US and also has wide usage in the Customer Premises Equipment (CPE) market with clients including Compaq, Flowpoint, Efficient, Zyxel, Cayman Systems, GVC, Teles and many others. DynaMiTe is also widely deployed in the test systems market.

DynaMiTe is multistandard compliant and features: -0-

-- ANSI T1.413 Issue 2, G.992.1 (G.dmt), G.992.2 (G.lite), ADSL
   over ISDN

-- Direct PCI 2.2 interface (MTK-20141)

-- Direct ATM support, UTOPIA interface (MTK-20131/140/150)

-- Full software configuration and control

-- Robust broadband connectivity up to 26 Kfeet on 24 AWG, 18
   Kfeet on 26 AWG

-- Full-rate ADSL transfer of up to 8 mb/s down and 850
   kbps up (on 26 AWG)

-0-

The Complete Package

The "packaged modem" approach adopted by Alcatel gives clients a flexible solution for ADSL. The DynaMiTe development kit includes the chipset, evaluation boards for both Central Office (CO) and Client Premises Equipment (CPE) modems, as well as reference designs, full documentation, test and verification tools including Alcatel's DeTONEator software and full specifications.

Interoperability

"The DynaMiTe is the most integrated, powerful and established ADSL technology on the market," commented Robert Bury, xDSL Product Manager at Alcatel Microelectronics. "We have a customer base spanning the CO, CPE and router segments and DynaMiTe's constant development confirms our position as the world leader in ADSL and underlines our commitment to this market."

Alcatel is leading the ADSL interoperability testing effort through its active contribution to standards and specific interoperability programs with other silicon and systems manufacturers. With more than 70 leading communications equipment manufacturers using DynaMiTe and 52%(a) of the US market, Alcatel's technology also guarantees physical interoperability between key vendors in all segments of the industry.

Availability

Both G.lite and G.dmt software are available exclusively from Alcatel for the complete range of DynaMiTe ADSL chipsets now.

About Alcatel

Alcatel builds next generation networks, delivering integrated end-to-end voice and data communications solutions to established and new carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of EURO 21.3 billion (US$25.0 billion), Alcatel operates in more than 130 countries. For more information, visit our website at http://www.alcatel.com

(a) Source: Ryan Hankin Kent

Note to Editors: DynaMiTe(TM) is a trademark of Alcatel