Alcatel and Kingston Vision Sign Deal to Expand Advanced Broadband Television Service; Kingston Interactive Television digital services underline the potential of DSL.

Business Editors

DALLAS--(BUSINESS WIRE)--July 5, 2000

Alcatel (NYSE: ALA), the world wide market leader in Digital Subscriber Loop (DSL) technologies, today announced a Euro 20.9 million expansion of its business with Kingston Vision, the broadband networking subsidiary of Kingston Communications (LSE: KCOM). The new investment will use Alcatel DSL technology to bring some of the most advanced commercially available interactive digital services within reach of thousands of consumers on the east coast of England.

The demand for services provided by Hull-based Kingston Interactive Television (KIT), which began in January 2000, has been very strong. This deal marks the beginning of a rapid increase in capacity to support an additional 30,000 customers. KIT will be rolled out to serve all 14 exchanges in the Kingston Communications' East Yorkshire network, ahead of plans to expand the service into Leeds later this year.

Subscribers to the services are offered 55 channels of digital broadcast television, covering free-to-air and premium subscription channels. Email and high speed, 'always on' Internet access are available via the TV, as is a free local information service. In a first for Europe, KIT is also pioneering true on-demand viewing of movies, music videos and TV programs, enabling customers to create their own viewing schedules.

All of these services are delivered over the same copper wires that already connect homes to the telephone network, and are available simultaneously with normal telephone calls.

Matt Child, managing director of Kingston Vision said: "3dSL enables us to give our customers access to some of the most exciting new broadband applications in the world ? ahead of the rest of the UK and Europe."

Pearse Flynn, president of Alcatel's Carrier Networking Group said: "Sheer demand from Kingston's customers goes to show how important broadband entertainment and information services are to consumers. Alcatel has a solution that provides telephone companies not just with bandwidth, but with highly desirable revenue-ready services as well. Until now these new services were the sole domain of cable operators."

Working closely with Kingston Vision and others, Alcatel has brought together into one package the technologies, applications and professional services that enable telephone companies to offer advanced digital services over the existing copper 'local loop' that connects homes to the telephone network. Each service represents a completely new and significant revenue stream to the operator, as well as the opportunity to become a 'portal' to the new generation of digital information and entertainment services.

About Kingston Communications/Kingston Vision

Kingston Communications (HULL) PLC is an independent Yorkshire-based telecommunications group, providing dedicated communications, locally, nationally and internationally. The Group was listed on the London Stock Exchange in July 1999 and is a constituent of the FTSE 250 Index. Kingston Interactive Television is the service arm of Kingston Vision, which was formed in November 1998 to research, develop and market a technological platform suitable for a wide range of multimedia and interactive services.

About Alcatel

Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking 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.