Alcatel DynaMiTe ADSL Chipset Selected for Newest Compaq Presario 5600 Series Internet PCs; Compaq 6.0Mb Max Digital Modem Enables High-speed Internet Access to Consumers.

PARIS--(BUSINESS WIRE)--March 17, 1999--Alcatel (NYSE:ALA) today announced that Compaq Computer Corporation has selected Alcatel's DynaMiTe ADSL (Asymmetric Digital Subscriber Line) modem chipset for use in Compaq's newest additions to its Presario 5600 Series of Internet personal computers (PCs).

The DynaMiTe chipset offers either G.Lite or full-rate ADSL with only a software change, allowing users to benefit from a broad range of ADSL access services.

Consumers can purchase Compaq Presario 5600 Series Internet PCs with Compaq's 6.0 Mb Max Digital modems containing Alcatel's DynaMite MTK-20140 ADSL chipset(1), via Compaq's "Built For You" custom configuration kiosks at retail locations nationwide or on Compaq's On-Line store on their web site. The 6.0Mb Max Digital modems are supported on the newest Presario 5600i and 5600s models which were announced February 26, 1999.

"As another proof point to Compaq's Triple Play Broadband Access Program, Compaq now offers the world's first standards based, full-rate ADSL enabled Internet PCs, providing consumers with broadband Internet connections at the highest speeds available, up to 6.0 Megabits per second, 100 times faster than current 56 kilobits per second modems," said John Stautner, Director of Internet Services, Compaq Consumer Products Group. "With the introduction of these new products, we are enabling our customers the widest coverage available for high-speed ADSL Internet access."

"Compaq understands the market importance of a full-function, standards based, ADSL modem and is once again leading the PC industry in communications innovation," said Didier Boivin, Business Director, Alcatel Microelectronics USA. "This is a very important development for Alcatel, Compaq, and the entire xDSL market. We have established ourselves as the market leader in the ADSL equipment market by working with market leaders in the telecommunications, Internet access, and PC industries and providing a chipset that is out there, working in the field, today."

In a recent study by Ryan Hankin Kent, Alcatel were found to have 52% of the US ADSL market.

Note to Editors: (1) While the DynaMiTe chipset is capable of transferring data at up to 6Mbps, users' individual line conditions can affect the transfer rate. 56 Kbps technology refers to server download speeds only and requires compatible modems at server sites. Other conditions may limit modem speed.

About DynaMiTe

On October 12, 1998, Alcatel announced its 2 chip Asymmetric Digital Subscriber Line (ADSL) modem kit, the MTK-20140 ADSL DynaMiTe chipset at DSLcon '98 Fall.

Integrated processing and software control

The MTK-20140 is the fourth generation of the DynaMiTe chipset and brings Alcatel market-leading ADSL solution down to 2-chips. This includes the analog front-end (AFE) chip (MTC-20144) and a digital chip (MTC-20146) integrating all the DMT and ATM functions and the embedded controller. This makes DynaMiTe a totally self-contained ADSL solution. DynaMiTe is fully ANSI Issue 2 compliant and features:

-- Direct ATM support (UTOPIA interface)

-- 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)

-- Software extensions to G.Lite and G.DMT, including ISDN support

The complete package

The "packaged modem" approach adopted by Alcatel gives clients a total 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 DeTonator software and full specifications.

The MTK-20140 is totally compatible with its three-chip predecessor, the MTK-20131, thereby offering DynaMiTe customers the option to simply upgrade earlier designs, gaining board area without changing the interface or software.

See DynaMiTe at CeBIT

Alcatel will be demonstrating the DynaMiTe ADSL solution at CeBIT 1999 in Hannover. Visit us in Hall 16, Stand A22.

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.