Alcatel Launches 1000 ADSL Version 3.0 AT SUPERCOMM And Demonstrates the Future of Data Access; Alcatel Product Destined For U.S. Customer Group Known as The JPC.

ATLANTA--(BUSINESS WIRE)--June 9, 1998--Alcatel is advancing the world standard for "hi-speed" data and interactive services here at SUPERCOMM through the introduction of the Alcatel 1000 ADSL (asymmetrical digital subscriber line), version 3.0, end-to-end system. This marks the third generation of this award-winning product line, which extends both the distance and speed at which users can access data services.

Delivery of this product meets a key requirement of the U.S. customer group of Ameritech, BellSouth and SBC Communications, Inc., known as the Joint Procurement Consortium (JPC).

"Installation of Alcatel's 3.0 version system will provide a systems solution, which enables JPC members to realize their individual market plans and meet their customers' needs for state-of-the- art Internet and other high-speed data access services," said Dr. David Kettler, BellSouth Executive Director and chairman of the JPC.

"It pleases us to achieve this milestone and to help our customers achieve their goals," said Krish Prabhu, CEO of Alcatel Network Systems, Inc. "However, we will not rest on our laurels and will work closely with them throughout their networks to help them realize the vision of a true high-speed digital future."

"This is an important step in the JPC's long-term goal of delivering the promise of high-speed Internet access via ADSL to consumers and businesses across the United States," said Tim Waters, Vice President - Product Management at Ameritech.

To illustrate, the Alcatel 3.0 system lies at the heart of the recent JPC announcements to make the benefits of ADSL-powered services available, on a combined basis, to millions of business and residential consumers. As such, Alcatel believes these carriers and other ADSL service providers now have the key to unlocking the true potential of ADSL and the dawning high-speed digital era.

TeleChoice, a leading ADSL industry analyst group, recently had this to say about the planned ADSL deployments:

"As mass market DSL services become available, consumers and businesses will benefit from vastly improved Internet response times for retrieving and transmitting data. Eliminating the local access bandwidth bottleneck for consumers and small businesses will have definite side effects -- increased use of the Internet for business applications and consumer entertainment, and continued growth of new applications and services that will take advantage of new access capabilities." - TeleChoice, xDSL News, May 27, 1998.

At SUPERCOMM, Alcatel will demonstrate its new ADSL modems supporting both full-rate and "universal" (or "lite") ADSL live in Alcatel's booth (#4213) and in the ICC SuperNeighborhood concept booth. Microsoft, AMD, Intel and BellSouth, one of Alcatel's many carrier customers, also will demonstrate Alcatel's ADSL offering.

Alcatel 1000 ADSL version 3.0 - Product information

The new release of the 1000 ADSL delivers several enhancements to a product already chosen and deployed by many large telephone companies around the world. More downstream and upstream bandwidth, enhanced rate adaptability, lower power consumption, and greater reach -- all are made possible by the new Alcatel Microelectronics DynaMiTe chipset. Version 3.0 also adds multiple Qualities of Service to its ATM (asynchronous transfer mode) transport, increasing overall flexibility. Alcatel's Central Office DSLAM (Digital Subscriber Line Access Multiplexer) and Digital Loop Carrier Mini-RAM (Remote Access Multiplexer) are both temperature hardened for greater reliability.

Furthermore, service provides can use the same Alcatel hardware with a POTS splitter at the customer premise to offer full rate ADSL, or without a splitter for reduced-rate Universal ADSL. This provides unparalleled value to the network provider by avoiding equipment churn in response to consumer modem selection and migration to higher rate connectivity.

By reducing the complexity of on-site installation and minimizing the need for new wiring at the user's home, Universal ADSL will make it possible to increase bandwidth for the customer on a more cost-effective basis. Alcatel further enhances this benefit by offering an ADSL system that allows service providers to choose, on a per-line basis, whether users will be full rate ADSL or universal - all without changing any central office or customer premise- hardware. For users desiring the full ADSL rates, Alcatel offers a consumer-installable splitter made to fit in the exiting Network Interface Device (NID) demarcation point; six color-coded wires are all that need to be connected.

"This latest version of the Alcatel 1000 ADSL retains the popular integrated architecture that has become the de facto standard, while adding value for our current and future customers," said Niel Ransom, VP/GM-Local Networks, Alcatel Network Systems, Inc. "We offer service providers the best, fully standards-compliant end-to-end system -- with the flexibility and room for future growth they need."

Alcatel 1000 ADSL systems, often referred to as DSLAMs, can support either the previous R2 modems or the enhanced R3 modems concurrently making introduction of these added capabilities as easy as placing a new board in an existing system. This is significant because of the current deployed capacity of over 200,000 ADSL lines in North America alone.

The Alcatel 1000 ADSL system enables end users to receive data at rates up to 8 Mbps -- 200 times faster than standard analog modems -- over existing phone lines. Service providers will use the system to reach customers up to 24,000 feet away with hi-speed services like Internet Access, high quality Video on Demand, Telecommuting, and Distance Learning. The system provides simultaneous voice and data service over the same phone line, bringing new life to the existing copper phone infrastructure.

Alcatel 1000 ADSL uses industry standard DMT (Discrete Multi Tone) line modulation and complies with NEBS and ANSI T1.413 Issue 2 standards. Alcatel's open architecture for customer premise equipment, high density DSLAM central office offering, universal DLC Mini-RAM, and ATM transport have helped make it the choice of major carriers world wide. Alcatel also continues to work with customer premise equipment manufacturers to guarantee availability of the widest range of ADSL appliances for existing, and new, broadband applications.

Alcatel designs, manufactures, and markets complete telecommunications systems. Activities include fixed switching networks, transmission systems, access systems, mobile communications infrastructure, business networking, submarine cable networks, as well as radio communications, space, and defense systems. With operations in over 130 countries, Alcatel is a leading-edge supplier in the majority of its business. In 1997, the Telecom segment of Alcatel Alsthom registered total sales of $14.2 billion (FF 82.9 billion). For more information, visit Alcatel via the web at: www.alcatel.com (www.ans.alcatel.com) in the US.

Contact for Alcatel Alsthom Investor Relations (Paris): Charlotte Laurent-Ottomane, (33.1) 40 76 13 30 or [e-mail] (Fax): (33.1) 40 76 14 05 -- UK media contact: Barrington Lloyd International, tel. [phone] or [e-mail]

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