Bell Canada Chooses Alcatel Optical Solution for the Migration of its Network.

Business/Technology Editors

SUPERCOMM 2000

ATLANTA--(BUSINESS WIRE)--June 7, 2000

Alcatel, world leader in optical networking, announced today that Bell Canada, the largest telecommunication-services firm in Canada, has chosen to utilize the Optinex(tm) OGX, Optical Gateway Cross-Connect, for its migration from the traditional broadband management points in its network to more reliable, all optical, large hub offices. The terms of the agreement were not disclosed.

Ian Highet, vice president-network planner, Bell Canada said, "As we look to migrate to a more optical-based network, Alcatel offered one of the best solutions for our immediate needs. This selection builds upon the successful relationship that we have developed with Alcatel over the years."

According to Christian Reinaudo, president of Optics, Alcatel, "The integration of the OGX into Bell Canada's optical hub offices is an important win for us. As the global leader in optical systems and digital cross-connects, Alcatel is pleased to demonstrate our expertise and experience in assisting our partners evolve their existing networks to the optical domain. Bell Canada has provided us an invaluable opportunity."

By combining traditional broadband digital cross-connect technology with optical layer and data management, the Optinex OGX will provide Bell Canada with improved bandwidth management, increased network efficiency, automatic restoration capability, and a clear migration path from the wire-center to the fiber-center. This deployment marks the introduction of the Optinex OGX to the Canadian market.

In November 1999, RHK, a leading telecommunications analyst firm, said that Alcatel holds a 21% share - the number one position - of the world's total transport market, which comprises submarine and terrestrial transmission systems. RHK noted that Alcatel's market-leading 37% market share in the submarine networks segment helped secure the top position in the total transport market. In addition, RHK found that Alcatel commands a 37% share of the digital cross-connect systems (DCS) segment. Cross-connect systems contain the enabling technology for operators to offer high bandwidth services. Alcatel is also cited as the global leader in terms of DWDM market share for the global market encompassing both terrestrial and submarine applications.

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. For more information, visit Alcatel on the Internet: http://www.alcatel.com