Alcatel Teams with Carrier Access to Accelerate BPON FTTP Deployments; Companies Announce Inter-Operability Between PON Product Lines; Joint Solution Receives High Marks at Multiple Beta Customers.

Business Editors/High-Tech Writers

PARIS--(BUSINESS WIRE)--Oct. 7, 2003

Alcatel (NYSE:ALA) (BOURSE:CGEP)and Carrier Access (NASDAQ:CACS), today announced the completion of interoperability testing between the Alcatel 7340 fiber-to-the-user (FTTU) passive optical network (PON) product line and the Carrier Access Exxtenz optical network terminal (ONT) for business applications. The testing completion underscores both companies' commitment to delivering standards-based solutions that are interoperable in multi-vendor environments.

By making their products interoperable, Alcatel and Carrier Access are providing operators with greater flexibility and increased product choices, thereby strengthening the value proposition of fiber-based broadband network technologies.

"This is a milestone in the evolution of PON development that will foster market competition among vendors and contribute to large-scale deployment," states Matt Davis, director broadband access technology, with the Yankee Group. "Interoperability presents operators with more flexibility when assessing their vendor requirements in different areas of the network and allows them to choose best of breed solutions."

Both the Alcatel and Carrier Access equipment is based on the ITU-T G.983 broadband PON (BPON) standard, and the combination is a first in the industry. The combined solution has been installed with initial beta customers and has received high marks for quality and performance. The solution is now generally available.

"The ONT is a crucial element in driving deployments of BPON access technologies, and the interoperable approach allows Alcatel to take a leadership position in delivering FTTU solutions as the market evolves," said Mark Klimek, senior director of marketing and business development of FTTU at Alcatel. "We've demonstrated support for standards-based access solutions in the DSL arena, and we're now carrying this forward in the fiber-access market. Carrier Access is an important partner in this effort."

"We began R&D investments in BPON approximately three years ago, with the purpose of integrating low-cost fiber access for businesses services," said Roger Koenig, CEO and president of Carrier Access. "Our early success with beta customers and the growing customer activity in the RBOC, IOC and municipality segments confirms the maturity of our complete fiber access solution for Ethernet, Voice, T1, and Video business services that we have delivered with Alcatel. Our joint BPON solution provides a significant step forward in using low-cost fiber to economically deliver a full suite of broadband services to business and government customers."

The testing with Carrier Access underscores Alcatel's commitment to interoperability, while complementing the company's existing fiber access portfolio, which consists of the Alcatel P-OLT, H-ONT, B-ONT and AMS. Teaming with Alcatel offers Carrier Access an opportunity to expand its robust portfolio of solutions for business users and seize new opportunities in the emerging PON market, and deliver economically sound fiber-based access solutions to business users.

-- RBOC: Regional Bell Operating Company 

-- IOC: Independent Operating Company

-- P-OLT : PON - Optical Line Terminal

-- H-ONT : Home - Optical Network Terminal

-- B-ONT : Business - Optical Network Terminal

-- AMS : Alcatel Access Management System

About Alcatel

Alcatel provides end-to-end communications solutions, enabling carriers, service providers and enterprises to deliver content to any type of user, anywhere in the world. Leveraging its long-term leadership in telecommunications network equipment as well as its expertise in applications and network services, Alcatel enables its customers to focus on optimizing their service offerings and revenue streams. With sales of Euro 16.5 billion in 2002, Alcatel operates in more than 130 countries. (www.alcatel.com)

About Carrier Access

Carrier Access manufactures broadband access and service delivery platforms for both landline and wireless communications carriers. Our solutions enable our customers to expand service revenues, lower operating costs, and extend capital budgets. Founded in 1992, Carrier Access has delivered more than 3.0 million voice and data lines for customers in North American and International markets. The company focuses on broadband access from central offices to customer premises, next-generation wireless transport and data infrastructure, and enterprise service delivery. Carrier Access products meet and exceed the highest industry interoperability, reliability, and quality standards; including Telcordia(R) OSMINE, NEBS Level-3, and ISO 9001. For more information, visit www.carrieraccess.com.