Alcatel Introduces Integrated Data Interfaces for SONET Access Product.

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

Accelerating the trend toward data and voice convergence, Alcatel (NYSE:ALA) today announced the availability of two new integrated data interfaces for its 1603 SM multi-rate SONET access multiplexer. With the addition of interfaces for native Ethernet LAN and DS3 ATM, Alcatel's 1603 SM now combines versatile and efficient data service transport with the traditional reliability of carrier TDM equipment.

Now, simply by adding a new interface card, carriers can seamlessly offer new services, such as native Ethernet LAN transport, while capitalizing on the efficiency of ATM as a superior data transport technology. With the 1603 SM's unique ATM cell-router technology, carriers can make the most efficient use of the system's capacity by provisioning and transporting data traffic, such as multi-megabit Ethernet, over virtual path (VP) connections sized to each user's throughput requirements.

"We are now delivering operators a way to instantly and economically integrate new variable-rate data services with traditional TDM services," said Bernie Assa, Product Marketing Manager at Alcatel. "Many current users of our 1603 SM are pleased that by adding one card to their existing TDM system, they can provide a native Ethernet interface to end-users. Or with one other card type they get ATM cell multiplexing, concentration and routing. It's a fast, inexpensive way to transform their networks via plug-and-play upgrades to address data hot-spots in a network on an as-needed basis -- all without disturbing the existing TDM service infrastructure."

The new data interfaces are expected to reduce equipment costs in several ways. For example, multiplexing ATM VPs into higher rate DS3 or SONET signals significantly reduces the number of interconnect ports to ATM switches or backbone networks. And the integrated Ethernet LAN interface saves on equipment at the end-user's premises. This includes TDM interfaces on the SONET access multiplexer and end-user router, as well as CSU/DSU equipment.

The 1603 SM LAN interface supports up to four directly terminated 10BaseT Ethernet connections. It can also be provisioned for one 100BaseT connection. Each Ethernet connection is converted to ATM cells, mapped as an independent ATM VP for security, and transported on the SONET ring with individual VP level protection.

The DS3 ATM interface provides an ATM formatted interface to connected ATM devices that can be located either at a central switch node or at a subscriber's premises. The new unit supports multiple VP loading and VP address translation.

The 1603 family of SONET access systems, which also includes the 1603 SE SONET Extender and the 1603 SMX SONET Multiplexer eXtra, provides compact OC-3 to OC-48 solutions that scale according to capacity requirements. The 1603 family also offers a variety of interfaces from legacy voice and data, to packet and cell-formatted high-speed connections. Simultaneous TDM and ATM traffic multiplexing and grooming enables efficient traffic transport and management for any type of service.

The 1603 SM, with these new announced features, will be operating in a data over SONET application linking a variety of ATM and IP equipment in Alcatel's Booth No. 4461 during Networld+Interop in Las Vegas, May 10-13.

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 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].