Alcatel Highlights Solutions Targeted to Key Markets at Networld+Interop.

LAS VEGAS--(BUSINESS WIRE)--May 10, 1999--

Alcatel(NYSE:ALA) will highlight a complete array of solutions targeted toward key markets, including the ISPs, Enterprises, and SOHO sectors, in Booth No. 4461 at Networld+Interop, May 11-13 in Las Vegas.

Alcatel is showcasing live demonstrations of its products, including those from its newly-acquired companies, Xylan and Assured Access, purchased in March, and Packet Engines, added last fall.

Xylan, offers intelligent products with any-to-any Layer 2 and Layer 3 switching capabilities, while Assured Access provides multi-service products for data and Voice over IP. Packet Engines delivers high-performance wire-speed routing and Gigabit Ethernet solutions. A sample of solutions Alcatel is showing at N+I includes:

ISP/CLEC

-- The Alcatel 1000 ATM Subscriber Access Multiplexer(TM) (ASAM) is

one of the most scaleable and flexible ADSL DSLAM product

allowing ISPs and telco operators to provide high-speed ADSL

access to their customers.

-- Xylan is debuting its new NetPAC technology for its Omni

Switch/Router, a high density access router solution designed for

a service provider's Point of Presence (POP). NetPAC features an

unprecedented level of IP and frame relay access, supports

high-density aggregation of up to 8,000 users, and boasts

Internet-strength, wire-speed routing of more than 12 million

packets per second -- all at the industry's lowest price per

subscriber.

-- Packet Engines PowerRail(TM)5200 Routing Switch, selected for

Data Communication magazine's "Tester's Choice Award," meets the

current and future demands of high-performance, high-availability

networks within ISPs, CLECs, MANs and Enterprise backbones. The

PowerRail 5200 Routing Switch provides wire-speed,

packet-by-packet routing throughput of more than 37 million

packets per second across more that 1.5 million subnet addresses.

Packet Engines' PowerRail Server Availability Module (SAM)

provides scaleability, high availability, and load balancing for

Internet and Intranet content servers.

-- The Assured Access X600, X1000, and X1600 products provide total

redundancy and fault tolerance, distributed packet forwarding and

protocol handling enabling service providers to acvisioning of SONET network

elements. The 1603 SM is a unique SONET access multiplexer

offering a variety of SONET, TDM, ATM, and Ethernet interfaces.

-- Alnes its ASAM and Litespan ADSL products into a

ring backbone. It is also shown in the

Enterprise section.

-- The 1301 NM Graphical User Interface network management strengths

to the telecommunications network. The 1301 NM provides a uniform

and simplified whing platform supporting: all wide area network rts all of these functions in

an integrated, scaleable and cost-effective solution. Xylan's

OmniSwitch Router 9 is featured in the ISP section, while the

OmniSwitch 5 and OmnStack 5024 are included in the Enterprise

section.

-- Alcatel's Intelligent Networks Dg

Switch, a smaller chassis-based switch dection. The highly

reliable PowerRail famiexer that scales from

DS1 to OC-48 speeds and offers a variety of SONET, TDM, ATM, and

Ethernet IP interfaces. All of these service interfaces can be

multiplexed and managed for optimum transport efficiency on an

ultra-reliable SONET ring backbone.

-- Alcatel's 1690 OADM is one of the industry's most

cost-competitive dense wavelength-division multiplexing (DWDM)

products for the metro and Enterprise markets. The 1690 OADM hits

the economic trigger point LECs and CLECs need to deliver data

and Internet services that are independent of the protocols used

by customers.

Residential

-- Alcatel's award-winning WebTouch(TM) One is also expected to be a

popular draw. Recently featured in Business Week, it provides

easy and affordable access to the Internet and advanced telephony

services.

-- Alcatel's broad line of Speed Touch(TM) ADSL customer premise

equipment (CPE) include USB, PCI, external and router products

that meet the needs of end users ranging from the corporate

telecommuter to the Internet surfer.

SOHO

-- Alcatel's SpeedTouch Office product is a highly integrated ADSL

router that provides all the security and routing features needed

to provide a small office high-speed Internet access via ADSL.

-- The Packet Engines PowerRail(TM) 1000 Routing Switch provides

high-performance routing solution in a small form-factor for use

in wiring closets and small and remote offices. The PowerRail

1000 Switch works with the existing network infrastructure to

boost network performance and enable new applications.

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 US Web site at www.usa.alcatel.com. Contact for Alcatel Investor Relations, (US) Michael Haase, 972/519-6855, [e-mail].