Alcatel Unveils Evolutionary Step in Optical Leadership.

ORLANDO, Fla.--(BUSINESS WIRE)--Sept. 14, 1998--Alcatel is unveiling another optical gateway network element September 14-16, 1998 at the 1998 National Fiber Optics Engineers Conference (NFOEC) in Orlando.

Focusing on end-to-end wavelength services, Alcatel's Optinex(TM)1680 OGM (Optical Gateway Manager) is part of a generation of products that manages entry points into the Optical Layer.

The 1680 OGM is built on revolutionary patent-pending architecture. This architecture eliminates the limitations of a traditional SONET/SDH multiplexer. The architecture allows the 1680 OGM to serve multiple 10 GB/s (stacked-delete) rings in a central office from a single network element. It minimizes office cabling and congestion because traffic can be groomed directly from one ring to another without ever leaving the network element.

Two transoceanic networks, Global Crossing's Mid-Atlantic Crossing (MAC) and a new consortium for Japan-U.S. Cable Network, will be incorporating the 1680 OGM with its unique SDH/Sonet features, including NPE (Network Protection Equipment) known as transoceanic 4 fiber bi-ring switching, into their respective networks

The new product continues Alcatel's leadership of the "optical gateway" concept introduced at Supercomm with Alcatel's first Optinex 1680 Optical Gateway Cross Connect (OGX). "The 1680 OGM brings the functions of the optical layer further out in the network. It provides the efficient management needed to meet the growing traffic demands," said Ken Lewis, VP/GM Core Transport Networks.

In developing this innovative new product, Alcatel leverages its extensive network experience. The 1680 OGM supports some of the most popular network applications pioneered by Alcatel, including in-service conversions from linear to ring topologies. Alcatel maximizes its experience in both digital cross-connect systems and SONETS/SDH add/drop multiplexers to produce this integrated node concept with the scalability, flexibility and functionality of the 1680 OGM and 1680 OGX.

Optical gateways provide a high-capacity platform with integrated Dense Wave Division Multiplexing (DWDM) optics. Optical Gateways allow bit-rate transparent traffic services to be efficiently transported through the backbone network that is optimized for high-capacity transport. These gateways are the keys to delivering end-to-end wavelength services. As the optical layer evolves, Alcatel's Optinex(TM) product line will foster economically streamlined networks and a greater range of services. They'll facilitate faster and higher-level restoration and aggregate bandwidth into larger components.

"The traffic explosion that initially caused carriers to add transport capacity is now resulting in a consolidation of elements to reduce central office costs," said Mathew Steinberg, Director of Optical Networks for Ryan Hankin Kent, a telecommunications research firm. "Alcatel's 1680 family of products begins to address large and small offices."

Alcatel is a world leader in telecommunications systems and equipment, with operations in over 130 countries. It provides complete solutions and services ranging from backbone networks to user terminals for operators, service providers, enterprises and consumers. Alcatel Alsthom, to be renamed Alcatel, has been up to now a multi-business company with revenues of $31 billion in 1997. It is currently reshaping its portfolio on its core business, telecom and cables, with a dedicated revenue of $23 billion in 1997. For more information, visit Alcatel via the web at: http://www.alcatel.com.

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]