Alcatel Enters North American Market for Optical Network Hardware Solutions.

CLAREMONT, N.C.--(BUSINESS WIRE)--June 7, 1999--

Alcatel (NYSE:ALA) has launched a broad product campaign to enter the $800 million North American market for optical network products including connectorized cable assemblies, optical patch panels, splice closures, optical link repair kits, and fiber attenuators.

Alcatel has been a leading European supplier for many years and the expansion into the North American market coincides with recent U.S. acquisitions of Digital Switch Corporation, Xylan, Assured Access, and Packet Engines.

Alcatel has established an optical components product team in Claremont, N.C., to pursue sales of these products which include several recent innovations for optical fiber networks. The L.I.N.X. W.T.C. and Clipper optical splice closures offer cable porting that can be configured by the customer. The closures also provide rapid, mistake-proof installation and conform to Bellcore requirements. In addition, FiberArt has recently been introduced as a new fiber management system that will make the process of connecting new subscribers more secure, more transparent and less time-consuming.

Alcatel's proprietary Emergency Repair Kit is a self-contained field system for rapid restoration of optical links during service interruptions, or for preserving service during maintenance outages. The kit is designed for maximum convenience and portability.

Alcatel also offers a full product line of high-precision optical cable assemblies that conform to Bellcore specifications. The polished multimode and single mode connectors meet the most stringent requirements of performance in the industry, and are available for use with virtually any connector in the industry. Also included in the product line are a full range of bulk-head attenuators featuring easy installation and repeatable performance.

"Alcatel can now offer a complete catalog of optical network components and hardware to complement our leadership in fiber optic cables and optical networking systems," explains Rob Mertz, Director of Marketing for Telecom Components for Alcatel. He adds, "Since we began our product launch early this year, we have already made inroads with multi-million orders from large telecom operators as well as numerous requests for product qualification. Our goal is to grow our market presence through existing product offerings, partnerships, and acquisitions to meet customer needs."

Alcatel builds next generation networks, delivering integrated end-to-end voice and data solutions to established and new carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of $25.0 billion, Alcatel operates in more than 130 countries.

In the field of telecommunications and power cables, Alcatel offers products, systems and services that meet the growing requirements of three main markets: infrastructure, industry and construction. The components business also forms part of this strategy of a global approach to markets, offering integrated solutions for clients who operate on an increasingly international basis.

For more information, visit Alcatel on the internet: www.alcatel.com or the U.S. Web site at www.usa.alcatel.com.

For more detail on Alcatel Cable Network products and services, contact Pamela Josey, Marketing Communications Specialist at 828/459-8338 or by fax at 828/459-9312.