Alcatel Partners with CacheFlow to Expand its Broadband Solutions Companies to target explosive DSL market.

Business Editors/High Tech Writers

HANNOVER, Germany--(BUSINESS WIRE)--Feb. 24, 2000

Alcatel (NYSE: ALA), a global leader in communications and networking, today announced a strategic partnership with CacheFlow Inc. (NASDAQ: CFLO), a leading provider of Internet caching appliances, to deliver solutions for the rapidly growing broadband service market.

The combination of Alcatel's and CacheFlow's products will offer service providers a comprehensive solution for building high-performance DSL and broadband wireless networks. The Alcatel and CacheFlow family will also increase performance for web hosters and allow service providers to deploy worldwide content distribution networks. Under the terms of the deal, Alcatel will immediately begin reselling CacheFlow's award-winning family of products through its worldwide channels.

"Broadband services are in high demand because high-speed Internet access is becoming a fundamental requirement for businesses and consumers," said Martin De Prycker, President of Alcatel's carrier data activities. "In order to deliver a great user experience on the web, Alcatel combines a high-speed access network with distribution of content closer to the user, based on CacheFlow's solutions."

CacheFlow's Internet caching appliances improve subscriber response times and save bandwidth by moving frequently accessed data closer to users. Further, the appliance ensures content freshness by intelligently monitoring the source of the data for changes. And as an "appliance", CacheFlow solutions are extremely simple to setup and manage, making them ideal for network edge deployment.

"Due to Alcatel's DSL leadership position, this partnership instantly bolsters our presence in the service provider community," said Brian NeSmith, President and CEO of CacheFlow. "Our caching appliances are a natural extension to Alcatel's next generation Internet solutions. This partnership creates a single-source for service providers looking to build high-performing, scalable next generation networks."

"The demand for high-speed, always-on Internet access is insatiable and DSL is the fastest growing broadband alternative. Our research shows deployments tripling over the last half of 1999," said Ruth Chatterton, Senior Consultant at TeleChoice. "Service providers are building their networks as rapidly as possible to capture DSL business. Continued growth will depend upon their ability to offer value-added services such as 'multimedia' and 'collaboration'. The Alcatel/CacheFlow team is well positioned to help service providers capitalize on this very significant opportunity."

About Alcatel

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 23 billion in 1999, Alcatel operates in more than 130 countries. For more information, visit our web site: http://www.alcatel.com .

About CacheFlow

CacheFlow is a leading provider of Internet caching appliances that accelerate and manage the flow of information over the Internet. CacheFlow solutions -- containing the CacheOSTM operating system -- boost the performance of e-commerce Web sites, enhance the productivity of Internet users and reduce overall network costs for Internet service providers and enterprises. In addition, CacheFlow Internet caching appliances are designed to provide better network security and more up-to-date content than traditional caching solutions. For more information, visit: http://www.cacheflow.com .