Alcatel Signs Agreement to Supply LMDS Equipment to Prime Companies, Inc.

Business/Technology Editors

DALLAS, Texas/YUBA CITY, Calif.--(BUSINESS WIRE)--June 6, 2000

Alcatel (NYSE: ALA) and Prime Companies (OTC BB: PRMC) today announced that they have signed an agreement to use Alcatel's Local Multipoint Distribution System (LMDS) equipment in Prime Companies' high-speed broadband wireless access network for small- and medium-sized businesses.

This agreement involves the deployment and management of Prime Companies' LMDS (28GHz) network using Alcatel's LMDS solution. In conjunction with LMDS Communications, Inc., a subsidiary of Prime Companies, Alcatel has been conducting field trials of its LMDS solution in New Castle, Pennsylvania, since March. LMDS Communications has a corridor of LMDS (28GHz) A band licenses in Pennsylvania and New York and is ranked in the top 10 of LMDS A band license holders in the U.S.

"Alcatel's LMDS solution has proven to be an easy-to-use and affordable solution for the broadband access needs of small- to medium-sized enterprises," said Dave Kimzey, vice president and general manager, Wireless Access Products, Alcatel. "We have been aggressively deploying LMDS internationally and now we are actively rolling out this high-speed data communications technology here in the U.S."

According to Norbert Lima, chief executive officer, Prime Companies, "The Alcatel LMDS solution has been shown to be very effective and reliable in our field trials. We plan to make the Alcatel solution the foundation for helping companies build traditional and e-commerce businesses using high-speed wireless access connections."

Alcatel, a global broadband wireless access supplier, can offer operators the strongest portfolio of broadband wireless access solutions with all world focus frequencies from 3.5 Ghz to 40 Ghz, end-to-end solutions with a comprehensive portfolio of core, transport, and access products and services such as network design, installation, and training, as well as the benefits of a local presence in more than 130 countries. Alcatel LMDS solutions lead the broadband wireless industry with more than 100 customer deployments or trials worldwide and more than 2,500 sectors shipped today.

About Alcatel

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

About Prime Companies, Inc.

Prime Companies, Inc., through its wholly owned subsidiaries, currently provides telecommunications services to both commercial and residential customers throughout the U.S. The services offered include prepaid telecommunications, interconnect, paging, Internet service access and voicemail services. The company is launching LMDS technologies to various markets through its subsidiary, LMDS Communications, Inc. Prime Companies is publicly traded on the OTC Bulletin Board by the symbol PRMC.