Alcatel's New Domain Name Server Application to Jumpstart Convergence of Intelligent Network and Internet Protocol Networks.

ORLANDO, Fla.--(BUSINESS WIRE)--March 29, 1999--Capitalizing on its expanding leadership in the Internet access revolution, Alcatel (NYSE:ALA) is launching its new Intelligent Domain Name Server (i-DNS) application at the IN World Forum March 29-31. Alcatel is featuring more than 150 IN services as part of its "one stop IN shop" solutions at Booth No. 401.

The Intelligent Domain Server adds momentum to Alcatel's role facilitating the convergence of Intelligent Networks (IN) and Internet Protocol (IP) Networks. It is part of the company's recently announced Alcatel 2ip(TM) Ready program that will evolve Alcatel's current product lines to embrace IP technologies.

Alcatel's i-DNS will allow ISP's, telcos, and service providers to rapidly deploy revenue-generating services. Using the Intelligent DNS Server allows providers to charge a premium rate for preferred connections and speeds. Plus, they can sell advertising at higher rates because it can be delivered based on criteria like the time of day or customer profiles. Along with generating additional revenues, the solution can also be used to enhance network performance and meet customer demands for reliability. Alcatel's Intelligent DNS Server will be available in the third quarter of 1999.

"Our application merges the industry-standard DNS with an IN services platform. We provide enormous flexibility to intelligently route Internet domain addresses," said David Espenlaub, vice president of Intelligent Networks for Alcatel USA. "We are currently scheduling trials with providers who want to leverage Alcatel's market differentiating IN services for wireline, wireless, and IP-based networks."

With Alcatel's IN solutions, customers can develop their own parameters to funnel their IP traffic. Along with premium rate ads, they can offer tiered service plans, restricted hours, guaranteed levels of service, and other solutions aimed at generating additional revenues.

"Alcatel's solution is part of a trend involving the bridging of IN and the Internet. The power and ubiquity of the telephone and the Internet will be harnessed to yield unprecedented control of services," said David Schwartz, a senior analyst for Dataquest. "As a result, service providers will be able to offer new hybrid services, reduce costs, and expedite new service introduction."

A major research project called "Project Clover" led to the creation of Alcatel's Intelligent DNS solution. Alcatel worked with Sun Microsystems and Strategic Technology Resources (STR), one of Sun's Authorized Java Centers(TM), to create Intelligent Network (IN) services in an IP network. The three organizations collaborated on developing an interface layer that would enable building of rapid IN service applications based on Java(TM) components. The research focused on launching IN services from a Web page using a standard browser. Alcatel is also planning to leverage Project Clover's research with the creation of a Web 800 product that will enable providers to invoke Voice over IP (VoIP).

Alcatel is becoming a worldwide player in the Internet field. It recently acquired Xylan, now a new center of competence for enterprise data networking solutions and and Assured Access, which provides multi-service products for data and Voice over IP. Xylan's Service Provider Business delivers a comprehensive family of intelligent products with any-to-any layer2 and layer3 switching capabilities. Alcatel also formed a new Internet Division to capitalize on its role as a first-class IP provider building on its new Internet strategy.

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 ($25.0 billion), Alcatel operates in more than 130 countries. For more information, visit Alcatel at http://www.alcatel.com or the U.S. Web site at www.usa.alcatel.com. Contact for Alcatel Investor Relations, (U.S.) Michael Haase, 972/519-6855, [e-mail].