Alcatel and NTT Form Partnership To Offer High Speed Internet Access.

Business & Technology Editors

TOKYO--(BUSINESS WIRE)--June 6, 2000

Alcatel (NYSE:ALA) today announced a partnership with NTT Advanced Technology Corp. to offer Alcatel's high-speed Internet access products including the 1000 Asymmetric Digital Subscriber Line (ADSL) Asynchronous Transfer Mode Subscriber Access Multiplexer (ASAM) and the Broadband remote Access Server through NTT's sales channels in Japan. Alcatel's 1000 ADSL solution will allow NTT's group subsidiaries and domestic business development to cost-effectively offer high-speed Internet access to residential users and commercial customers.

Alcatel is the leading supplier of ADSL systems worldwide, with more than 55 percent marketshare in 1999, and having deployed today more than 2.7 million ADSL lines worldwide since 1996.

According to NTT-AT, "xDSL is one of the most important technologies for us to offer consumers and commercial enterprises in our region. Alcatel's xDSL solution and other IP (Internet Protocol), ATM (Asynchronous Transfer Mode) products make it easier for us to provide the low-cost, high-speed Internet access that they are looking for. We are targeting approximately US$2.5 million revenue in this first year."

About NTT-AT

NTT-AT was founded in 1976 as Nippon Telecommunication Engineering Crop. to be responsible for the technology transition from Nippon Telegraph and Telephone Corp. (NTT) R&D to Japanese industrial world. Over the 20 years that have passed since then, NTT-AT has brought a wide range of technologies to a large number of corporations both in Japan and overseas. NTT-AT has more than 1480 employees and had sales of US$300 million in 1999. For more information, visit NTT-AT on the Internet: http://www.ntt-at.co.jp

Alcatel's ADSL Expertise

The world's leading supplier of DSL systems with market leadership in its Asynchronous Transfer Mode (ATM) Subscriber Access Multiplexer (ASAM) and Litespan(R) family of products, Alcatel has been supplying industry-standard end-to-end Asymmetric Digital Subscriber Line (ADSL) solutions since 1996. Alcatel's Digital Subscriber Line access solutions are available on a variety of service platforms, including the Alcatel ASAM family; the Litespan Next Generation Digital Loop Carrier (NGDLC); and environmentally hardened Digital Subscriber Line Access Multiplexer (DSLAM) packages optimized for digital loop carrier deployment. The Alcatel ASAM holds over 55 percent of the worldwide central office ADSL market share. Alcatel's Litespan multi-service access platform, an integrated NGDLC/DSLAM, has a global embedded footprint of 57 million subscribers and growing.

All Alcatel DSL platforms are commonly managed through a single access element management system. Alcatel's ASAM is NEBS (New Equipment Standards) (Level 3) compliant, enabling the ASAM to integrate seamlessly into service provider networks. The Alcatel DSL family is fully scalable and supports a wide variety of service packages, including asymmetric and symmetric offerings and can be easily deployed in service provider networks, including collocation environments, providing excellent density, efficient power utilization, and high performance. Alcatel's ADSL solutions support full-rate discrete multi-tone (DMT) ADSL as well as reduced rate G.lite ADSL on a single line card, maximizing a carrier's service options while minimizing costs. Alcatel's DSL technology is also offered in an advanced range of customer premises equipment, including the Alcatel Speed Touch? family of DSL modems, routers, and integrated access devices supporting multi-line voice and data service over a single telephone access line. Alcatel has delivered ADSL equipment to Telekom Austria, Swisscom, Telia in Sweden, BT and NTL in the UK, KPN in the Netherlands, Cegetel in Monaco, Belgacom in Belgium, Telefonica in Spain, France Telecom, Telecom Italia, Singapore Telecom, Telstra in Australia and PT Telecom of Indonesia. Further ADSL networks have been implemented in Canada, China, Korea and Thailand. In the U.S., Alcatel's ADSL technology is deployed by Bell Atlantic, SBC (Southwestern Bell, Pacific Bell, and Ameritech), BellSouth and Allegiance.

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, Alcatel operates in more than 130 countries. For more information, visit Alcatel at http://www.alcatel.com or the U.S. Web site at www.usa.alcatel.com.