Alcatel Introduces Integrated Data Interfaces on SONET Access Product.

WASHINGTON, D.C.--(BUSINESS WIRE)--Jan. 25, 1999--

Alcatel's 1603 SM Allows Carriers to Seamlessly

Expand Data Services While Serving

Customers Most Effectively

Alcatel (NYSE:ALA) today introduced two new integrated data interfaces on its 1603 SM multi-rate SONET access multiplexer. The two new interfaces include a native Ethernet LAN interface and a DS3 ATM interface.

Alcatel's 1603 SM now provides more efficient options to transport variable rate data traffic than traditional SONET TDM multiplexers. The product, with its new features, will be on display in Booth No. 1626 during COMNET '99 in Washington, D.C., January 25-28.

With the simple addition of a new interface card into the Alcatel 1603 SM, 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. This is a critical benefit given the trend towards data and voice convergence, for carriers must cost-effectively integrate variable-rate media over existing networks. In addition, with the 1603 SM's unique ATM cell-router technology, carriers also attain tremendous bandwidth savings by provisioning and transporting data traffic, such as multi-megabit Ethernet over virtual path (VP) connections, sized to each user's throughput requirements.

"The new interfaces on the Alcatel 1603 SM are valuable tools for service providers," said Bernie Assa, Product Marketing Manager at Alcatel. "A carrier can now efficiently allocate data bandwidth according to the user's needs. This alleviates the inefficiencies of dedicating underutilized DS3 connections for users who need only a fraction of this bandwidth. The carrier can also price the service according to this usage, which is important for both the user and service provider alike."

With the new Alcatel 1603 SM integrated data interfaces, carriers also save money through reduced equipment costs. Multiplexing ATM VPs into higher rate DS3 or SONET signals significantly reduces interconnect ports to ATM switches or backbone networks. With the integrated Ethernet LAN interface, carriers and end-users also save on equipment at the end-user's premises, including TDM interfaces on the SONET access multiplexer and end-user router, and CSU/DSU equipment.

The Alcatel 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 premise. 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 XONET 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 new Ethernet LAN and DS3 ATM interfaces will be available mid-year.

A world leader in telecommunications systems and equipment, as well as related cables and components activities, Alcatel operates in over 130 countries. Alcatel provides complete solutions and services to operators, service providers, enterprises and consumers, ranging from backbone networks to user terminals. For more information, visit Alcatel on Internet: http://www.alcatel.com or the US Web site at www.usa.alcatel.com. The contact for Alcatel's Investor Relations is (US) Michael Haase, 972/519-6855, [e-mail].