Alcatel to Deploy First Broadband Wireless Access Network in Korea; Alcatel's Popular EVOLIUM LMDS Solution To Be Used By Korea's Leading Telecommunications Provider Hanaro Telecom.

Business Editors

DALLAS--(BUSINESS WIRE)--April 7, 2000

Further solidifying Alcatel's position as the leading provider of fixed wireless communications in Asia, Alcatel and systems integrator Sungmi Electronics today announced that Alcatel has been awarded a phase-one contract for $7.2 million (U.S.) to provide equipment to Hanaro Telecom, Inc. to deploy the Alcatel EVOLIUM(TM) LMDS Solution (Local Multipoint Distribution System) for the first commercial Broadband Wireless Access network in Korea.

This network will first be implemented by Hanaro, one of the largest telecommunications service providers in Korea, in the City of Pusan beginning in June and is scheduled to be completed later this year. With systems integration conducted by Sungmi Electronics, the EVOLIUM(TM) LMDS solution will allow Hanaro to offer last mile wireless broadband access, including voice and Internet services, such as local area network (LAN) interconnections, PBX applications, videoconferencing, as well as virtual leased-line services to millions of SMEs (Small and Medium Enterprises), SoHos (Small Office/Home Office) businesses and residential customers.

"The EVOLIUM(TM) LMDS solution is the ideal broadband wireless solution to access the local loop and is the ideal system for quickly and cost-effectively providing broadband services to business and residential office buildings," said Dave Kimzey, vice president and general manager, Wireless Access Products, Alcatel USA. "Korea is a vast country of more than 44 million people with more than 26 million lines in service today. Alcatel's network solution will quickly allow more businesses and residential customers to experience and reap the benefits of high-speed data communications without having to wait for costly infrastructure improvements."

"The Alcatel EVOLIUM(TM) LMDS solution is by far the most advanced wireless broadband point-to-multipoint technology that we have tested in a field trial environment," said Hanaro Telecom, Inc., President and CEO Yun-Sik Shin. "We were seeking a highly scalable, flexible network solution that would allow us to diversify our service offerings and meet the evolving demand for high-quality broadband services. Alcatel's network solution gives us the competitive advantage to offer a suite of superior services at a low cost to our customers."

About LMDS

Today, with its worldwide reputation for superior quality, service, technical capabilities, price and trust, Alcatel has more than 40 extensive field trials and commercial deployments using the EVOLIUM(TM) LMDS solution. These networks are operational in a number of countries around the world, including Korea, Germany, Austria, Belgium, France, Greece, Poland, Japan, Singapore, Italy, Spain, Portugal, Scandinavia, Israel, Mexico and the U.S.

LMDS services seek to compete with optical fiber in the framework of the high-speed access to the local loop, by providing comparable capacity, quality and reliability with fewer easement, right-of-way or construction constraints than wired systems. With Alcatel's broadband wireless access -- including also a 3.5 GHz frequency band system designed to cover the needs of very small enterprises of the "SoHo" type (Small Office/Home Office) -- the objective is for an operator's start-up costs to be low and deployment to be fast.

EVOLIUM(TM) is the brand name of a whole range of fixed and mobile radio solutions dedicated to ILECs, CLECs and GSM operators and specially designed to adapt to the constantly changing realities of fixed and cellular networks. The EVOLIUM(TM) range of solutions includes:

EVOLIUM(TM) GSM Solution EVOLIUM(TM) LMDS Solution EVOLIUM(TM) Wireless IP Solution EVOLIUM(TM) Microwave Solution EVOLIUM(TM) WLL Solution EVOLIUM(TM) 3G Mobile Solution

About Hanaro Telecom

Hanaro Telecom Inc. was founded in 1997 with the goal of providing Multimedia Telephone Service for the 21st Century. Hanaro started offering Commercial Service in April 1999 and today its subscribers total 200,000 in Seoul and other major cities. Hanaro is committed to driving the Internet's booming momentum by combining ADSL Technology with Ultra High Speed Internet and Multimedia Services. Hanaro is paying special attention to High Quality Internet Access Services by integrating FTTC, FTTO and ADSL.

Alcatel builds next generation networks, delivering integrated end-to-end voice and data solutions to established and new carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of EURO 21.3 billion ($25.0 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.