Alcatel Unveils High-Speed Photonic Cross-connect for Intelligent Optical Networking; Offers World's Largest Capacity Levels and 40% Network Cost Reduction.

Business Editors, High-Tech Writers

DALLAS--(BUSINESS WIRE)--July 31, 2000

Alcatel (NYSE:ALA), the world leader in optical networking and cross-connect systems, today introduced the CrossLight photonic cross-connect.

This breakthrough optical system will enable communications carriers and service providers to build highly intelligent, all-optical communications networks that deliver greater capacity at reduced cost.

The CrossLight photonic cross-connect routes light through its all-optical switching matrix, eliminating the optical-electrical conversion typical in existing electrical broadband cross-connect systems. In contrast to an electrical broadband cross-connect, which can handle only a fixed amount of traffic, CrossLight's capacity can increase as a customer's need for bandwidth grows. In addition, CrossLight will enable carriers and service providers to allocate bandwidth on demand for the busiest parts of their network.

"As the volume of data and voice traffic continues to climb across the world, photonic cross-connect systems will be key to the efficient and successful operation of communications networks," said Dana Cooperson, director of Optical Networking, RHK, Inc. "Alcatel's new CrossLight photonic cross-connect is targeted at meeting the ever-increasing capacity needs of service providers who are building high-bandwidth optical networks."

According to the President of Alcatel's Optics Group, Christian Reinaudo, "As a stand-alone product, CrossLight will offer the world's largest capacity levels and reduce carrier and service provider network costs by 40 percent. In addition, Alcatel's customers can take advantage of the company's complete optical core solutions and technologies, including Alcatel 770 RCP core router platform, all supported by the same, unified network management platform. As a result, customers will enjoy unequalled dynamic bandwidth allocation."

Alcatel is a leading provider of cross-connects, with a 37 percent market share worldwide, according to leading telecommunications industry analyst firm, RHK, Inc. The CrossLight photonic cross-connect is part of Alcatel's Optinex family of solutions, which includes dense wavelength division multiplexing, multi-service node, optical gateway, photonic cross-connect and optical terabit router technologies.

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 Alcatel on Internet: http:// www.alcatel.com.