Alcatel Showcases 21st Century Optical Networking Technology at Optical Fiber Conference.

SAN DIEGO--(BUSINESS WIRE)--Feb. 22, 1999--Alcatel (NYSE:ALA), a leader in optical networking, is demonstrating its Wavelength Translating all-Optical Cross Connect (wt-oxc) today in Booth No. 1929 at the Optical Fiber Conference (OFC).

Routing and protecting at the optical level is vital to support the "IP Networks" currently envisioned by a number of leading carriers. Carriers will benefit from the flexibility and scalability of an all optical cross-connect like Alcatel's. The product offers transparency which makes it independent to bit rate and protocol. Carriers can easily upgrade their access and service networks to provide higher rate ATM/IP, SDH or SONET without changing the core of their network. As a result, they can deploy services faster and upgrade the overall network seamlessly.

Alcatel's OFC demonstration showcases a fully reconfigurable 4X4 WT-OXC. It encompasses a cascade of up to four (4) WT-OXCs through more than 400 km of standard single mode fiber. It supports four unique wavelengths on each port that manages all optical wavelength conversion.

The key components used in Alcatel's optical cross connect demonstration are manufactured in volume by Alcatel Optronics, the leading supplier of high performance lasers and detectors, optical amplifiers, and optical interfaces. The components include 1) Alcatel 1901 ICM, an optical wavelength converter which shifts the digital modulation from one optical carrier to another, 2) Alcatel 1905 LMI, a high power CW source that provides the new wavelength, and 3) Alcatel 1924 OFA flat-gain optical fiber amplifier, which compensates for losses due to the first stages of the cross connect.

Alcatel's OFC demonstration illustrates its strength and expertise in optical networking. It encourages carriers to consider future implementations of an all-optical solution that offers faster service deployment and seamless network upgrades.

Alcatel's wt-oxc uses the same basic architecture it used during the ACTS OPEN field trials that successfully demonstrated the optical cross connect's potential. The current system shows the feasibility of end-to-end, large-scale photonic networks. These issues will be further studied during a three-month field trial scheduled as part of the ACTS/PELICAN project set for late 1999.

"The development of an all optical cross-connect is a natural step for Alcatel. We have an enviable history with large-scale digital networks and years of both lab and field experience with all optical cross-connects," said Dr. Herve Fevrier, Alcatel USA's Vice-President and General Manager of Optical Networks.

With an optical cross-connect, various levels of transparency are required and can all be accommodated. These levels of transparency include:

-- Data Protocol -- Because the Optinex(tm) OXC is completely

optical, it is transparent to the type of data protocol used. As

a result, carriers can transport ATM or IP directly over WDM and

connect that information through the matrix without any hardware

change.

-- Bit Rate -- Alcatel's solution allows a channel to accommodate

any rate and be independent of other wavelengths. For example,

one channel can accommodate Gigabit Ethernet, while another

channel could handle 10 Gb/s.

-- Signal Format -- As long as the signal is digital, each

wavelength can be any format, including Return to Zero (RZ) or

Non-Return-to-Zero (NRZ). This means the same OXC can be used in

SDH networks and SONET networks, meeting standards in the US and

Europe.

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 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].

Alcatel Optronics markets a full range of optoelectronic devices and solutions for fiber optic communications with particular emphasis on components for high bit-rate and D-WDM systems.