Alcatel demonstrates ADSL/ATM corporate local area network at NetWorld + Interop Las Vegas.

LAS VEGAS--(BUSINESS WIRE)--May 2, 1997--Alcatel (NYSE:ALA), in conjunction with Pacific Bell -- one of its U.S. ADSL (asymmetrical digital subscriber line) customers, is demonstrating here at Networld + Interop, May 6-8, the ideal solution for corporate local area networks (LAN) and remote access using its acclaimed ADSL and ATM (asynchronous transfer mode) network architecture.

As previously announced, Pacific Bell represents one of the original Joint Procurement Consortium Members (including BellSouth, Ameritech, and Southwestern Bell). Each is moving forward with ADSL deployments of various types. This demonstration represents a step in Pacific Bell's plans to begin a limited roll-out of FasTrak ADSL this Fall and expand its availability in 1998 and 1999.

Alcatel, in booth 4987, will demonstrate interactive videoconferencing, high-speed data transfer, Internet access and other corporate services using workstations connected to the Alcatel 1000 ADSL customer premise equipment. The network also includes the Alcatel 1100 HSS Avanza ATM switch and the Alcatel 1603/12 SM SONET (synchronous optical network) OC-3/-12 rate (155/622 Mbit/s) multiplexer.

The connection between the Alcatel booth and the Pacific Bell booth (No. 3777) consists of "plain old telephone" access line technology using ADSL. With this complete, end-to-end network architecture, Alcatel is simulating remote access to a corporate wide area network (WAN), as well as access from the WAN to the corporate LAN or the Internet service provider (ISP) server and switching environment -- a true working environment for today's business climate.

The demonstration, running continuously during exhibit hours, will feature standard, twisted-pair copper telephone lines simultaneously transmitting voice (telephone) and data services (up to 6 Mbit/s) using end-to-end ATM, end-to-end Ethernet over ATM or a combination.

These lines will feed into Alcatel's ATM subscriber access multiplexer system (ASAM, generically known as a "DSLAM") for transport via a 155 Mbit/s link to the telephone network "central office," and then to the Alcatel 1100 HSS MultiService Switch.

The Alcatel 1100 HSS MultiService Switch will provide a combination of Frame Relay and ATM high-speed, backbone switching to ISP and corporate servers. The Avanza network, which is the world's first integrated, multiservice switching network providing full connectivity from desktop-to-central office, will handle LAN/WAN switching and routing with the Alcatel 1603/12 SM providing 622 Mbit/s protected ring transport. Alcatel will use the 1000 ADSL product and copper line pairs to complete the connection to the remote access configuration in the Pacific Bell booth.

ADSL technology, which utilizes the existing copper telephone wiring serving virtually all homes and businesses, will enable customers to interact with data networks and the Internet at speeds more than 50 to 200 times faster than today's 28.8 kilobits per second analog modems allow. Since the technology utilizes a portion of the existing phone line, a customer will be able to use the data portion of the line and talk on the voice portion of the line simultaneously.

Alcatel's open, discrete multitone (DMT) standards-based ADSL product line better utilizes the capacity of standard telephone lines and enables service providers to deploy new services quickly without costly network upgrades or expensive customer premise equipment. The Alcatel 1000 ADSL offers both speed and power adaptations. DMT technology enables the ATM transfer rate to adjust its speed automatically in response to varying line conditions and interference parameters.

The Alcatel 1100 HSS MultiService Switch provides both native ATM and Frame Relay switching. It is the only switch of its kind being delivered today which has independent Frame Relay and ATM switching, with interworking between the two technologies, offering unparalleled broadband networking options. The multiservice switch supports high-bandwidth backbone applications, such as LAN interconnection, circuit emulation, voice, and video. RateMaster(TM), a patented, proactive traffic control system, provides maximum trunk utilization and optimized network performance.

The Alcatel 1603/12 SM is providing for this demonstration OC-12 ring-protected transport of the ATM traffic from the Alcatel 1000 ADSL using its OC-3c drop side interfaces. The next planned feature release will further improve ATM transport efficiency by incorporating ATM cell routing for drop-side concentration and high-speed aggregation. Upcoming releases include plug-in options which will allow service providers to perform traffic data rate policing and smoothing for more efficient bandwidth management in evolving SONET/ATM networks.

Alcatel's activities in North America include the design, manufacture and service of a full line of voice, data, video and multimedia telecommunications products -- such as ATM switching systems, digital cross connects, DSL systems, fiber optic transmission systems, optical amplifiers, microwave radios, wireless communications switches, video codecs, and network management systems. The telecommunications and broadcast industries, private operators and corporations use these products to create high performance networks. The global operations of Alcatel make it one of the world's leading communications equipment manufacturers. Alcatel is part of the Alcatel Alsthom group, which maintains its headquarters in Paris. Alcatel Alsthom trades on the New York Stock Exchange as ALA. -0-

Additional contacts: Lina Park, Edelman Worldwide, tel. [phone], email: [e-mail] and Steven Hendricks, Miller/Shandwick Technologies, tel. [phone], email: [e-mail]. In the UK, Barrington Lloyd International (Tel: [phone] or Internet: [e-mail].

CONTACT: Alcatel

Katie Hammler, 703/724-2249

[e-mail]

or

Michael Newsom, 972/996-7896

Internet: [e-mail]