BROADBAND TECHNOLOGIES, INC. TO DELIVER INTERACTIVE VIDEO NETWORK TO FRANCE TELECOM THROUGH ITS PARTNER GROUPE SAGEM; Becomes First Company to Provide Proven Interactive Switched Digital Video to European Customers.

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--Aug. 16, 1995-- BroadBand Technologies Inc., (NASDAQ:BBTK), the leading provider of interactive switched digital video (SDV) systems, has announced it's first major European customer. France Telecom has selected BroadBand Technologies together with their European partner SAT (Groupe SAGEM), a leading French telecommunications equipment provider, to build a fiber-to-the-curb trial network and begin the development of broadband interactive multimedia services in France.

BroadBand Technologies and SAT will provide a fiber-based access platform to deliver telephony, interactive video services and high speed data communications to up to 20,000 homes in France. France Telecom will incorporate the BroadBand Technologies/SAT system into its $100 million Fiber Optic Information Superhighway Initiative, designed to provide subscribers with the most efficient access to new and existing multimedia services. In 1996 the first of these fiber-to-the-curb and fiber-to-the-building networks will be installed to enable access to new broadband interactive services, including video on demand, and telephone, broadcast cable and high-speed data services for access to Teletel and the Internet.

Less than one year ago, BroadBand Technologies announced a partnership agreement with SAT to develop a system compliant with European standards (ETSI). This system incorporates BroadBand Technologies' second generation interactive switched digital video platform, the FLXb-2500 System, with SAT's telephony and telecommunications expertise. This System delivers full broadband video, data and telephony services over a fiber-to-the-building or fiber-to-the-curb network.

"Our common success with France Telecom validates our business strategy to develop partnerships in key international markets, combining our partners telephony experience and marketing presence in each country with BroadBand's full-service global core platform," said Dick Popp, BroadBand Technologies' Executive Vice President of Operations. "Together, SAT and BroadBand can offer a range of proven products and services that no one company in Europe can match."

France Telecom's Fiber Optic Information Superhighway Initiative is an extension of the national fiber optic business network launched in 1992. The France Telecom network will be carried right to the building or to distribution points serving small groups of homes. France Telecom has announced that its trial multimedia networks will combine the most advanced telecommunications technologies to deliver video and interactive services in addition to high-quality voice and data communications services to individuals and business subscribers.

"France Telecom has demonstrated a complete commitment to select only the most efficient and capability-rich interactive broadband communications products for their national information superhighway which makes the selection of the integrated BroadBand-SAT platform a tremendous victory for both companies," said Marc Matthieu, Executive Vice President of SAT. "The extensive array of high-quality interactive broadband services enabled by our two companies' integrated technologies will provide our customers with a true state-of-the-art communications environment."

BroadBand Technologies' FLX Systems are fiber-to- the-curb and fiber-to-the-building platforms that incorporates ATM switching and transport. The FLX Systems enable network operators to provide telephone service and advanced services such as enhanced cable TV, impulse pay-per-view movies and movies-on-demand, multi-media home shopping, electronic yellow pages, interactive educational programs on up to 1,500 interactive channels. No other system available today is able to deliver this type of high-performance, interactive service capability.

BroadBand Technologies, Inc., based in Research Triangle Park, N.C., was founded in 1988. Its mission is to transform the local loop into a cost-effective, fiber-based, interactive switched digital broadband network for consumers. BroadBand's Fiber Loop Access (FLX) System is currently being deployed by Bell Atlantic and has been in trials at most operating companies, GTE, and a number of international telephone companies. The second-generation FLX System was selected by SBC Communications, formerly Southwestern Bell, for deployment in Richardson, TX. AT&T has chosen the FLX System as its fiber-to-the-curb, switched digital video (SDV) offering for the U.S. and Canadian markets.

Groupe SAGEM employs 14,000 people and has Annual Sales of 13 billion francs (2.6 billion U.S. dollars). In the field of telecommunications, with its undisputed technological expertise, a strong research and development and manufacturing organization, and long term relationships with important customers worldwide, Groupe SAGEM is the leading European manufacturer of set tops for pay TV and of fax machines. Groupe SAGEM also enjoys leading positions in transmission on fiber optic cable and microwave, and in several other market segments such as ISDN devices and data transmission.

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Note to Editors: FLX is a registered trademark of BroadBand Technologies Inc.

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BroadBand Technologies, Inc.

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