Alcatel Introduces New Regional Metro DWDM System for 40-150 km Applications.

ATLANTA--(BUSINESS WIRE)--June 8, 1999--

Alcatel (NYSE:ALA) announces its new regional metropolitan Dense Wavelength Division Multiplex (DWDM) system, which offers service providers a cost-effective solution for routes from 40 to 150 km.

Introduced today at SUPERCOMM in Atlanta, the Optinex(TM) 1686 OADM addresses one of the industry's more rapidly growing market segments.

Until now, regional spans that are too long for unamplified systems have often relied on expensive long-haul equipment that is primarily intended for cross-country backbone applications. By contrast, the 1686 OADM uses low-cost amplifiers to avoid the unnecessary costs associated with using these long-haul systems on mid-length routes. With its ability to carry data at rates of 100 Mb/s up to 10 Gb/s on each of 32 channels, the 1686 OADM has been designed specifically for large metropolitan point-to-point and ring applications.

"With the addition of the Alcatel Optinex 1686 OADM to our DWDM product portfolio we offer systems that are optimized for any application, including long-haul, metro, and enterprise," said Paul Harrison, Vice President and General Manager, Optical Backbone Networks, Alcatel. "We don't believe carriers should have to pay a premium for the convenience of 'one-stop shopping,' and now they don't."

The 1686 OADM provides wavelength add/drop multiplexing and optical layer restoration. These features are necessary to keep driving down network cost and minimize the number of network elements deployed in today's systems.

The Optinex 1686 OADM is available now to complement Alcatel's full line of DWDM systems which include the Optinex 1690 OADM for use on unamplified spans of less than 65 km and the Optinex 1640 OADM for long-haul applications. Together these products help make end to end wavelength services an affordable reality.

Alcatel will showcase the OPTINEX 1686 OADM in booth No. 6713 at Supercomm. The 1686 OADM will be part of a live demo showcasing partitioned wavelengths supporting IP directly over DWDM.

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 on Internet: http:/www.alcatel.com. Contact for Alcatel Investor Relations, (US) Michael Haase, 972/519-6855, [e-mail].