BellSouth Plans the World's Largest Broadband Fiber in the Loop Deployment Using Marconi's ATM Based DISC*S MX Platform.

PITTSBURGH--(BUSINESS WIRE)--Dec. 16, 1999--

Marconi today announced a major commitment by BellSouth to deploy voice, video and ATM-based high-speed data technology throughout the BellSouth network using Marconi's newly introduced ATM-based DISC*S MX access platform. Marconi projects that BellSouth's planned deployment will generate more than $1 billion in sales revenue for the company over the next three years. This announcement follows the June 1999 commitment to Marconi for Integrated Fiber in the Loop (IFITL) and represents a strong next step in BellSouth's broadband deployment strategy. It builds upon BellSouth's commitment to fiber optic distribution deep into its network, based on Marconi's Deep Fiber technology.

This contract is a landmark for Marconi, clearly demonstrating the synergies of acquiring and integrating RELTEC Corporation and FORE Systems. The contract covers deployment of a solution comprised of the robust DISC*S platform, and ADSL and ATM technologies gained from the considerable strengths of the combined Marconi companies. In addition, technology and engineering resources from Europe were instrumental in accelerating this development and bringing this product to market in time to meet BellSouth's needs

Beginning in early 2000, BellSouth will deploy Marconi's next generation DISC*S MX products. DISC*S MX delivers enhanced, ATM-based broadband services in the framework of the "field proven" first generation DISC*S equipment.

In addition to the new deployment, the program also involves upgrading the first generation "fiber to the curb" deployments to add ATM-based ADSL services to those areas currently served by the existing Marconi Communications equipment.

BellSouth has been deploying Marconi's first generation "fiber to the curb" products since 1995 and serves nearly 500,000 homes with fiber optic distribution capacity. Earlier this year, BellSouth announced plans to deploy 280,000 lines of fiber optic distribution in the region. This deployment is concentrated in Atlanta and south Florida, and is part of BellSouth's major commitment to deliver broadband voice, video and data services to consumers. The success of this initial deployment program has led to the decision to accelerate fiber optic deployment into other BellSouth served geographies.

Fiber optic distribution offers the fastest speed delivery rates possible. Marconi has demonstrated this unique "fiber to the curb" performance on its new MX ATM platform across the range of voice, video and data services. This award is a confirmation of that capability.

Dr. Dave Kettler, BellSouth vice president of science and technology, said, "This demonstrates the expanding commitment of BellSouth to be a leader in broadband technology deployment. BellSouth has been deploying fiber in the loop for over four years. This agreement will enable BellSouth to take greater advantage of the fiber bandwidth in delivering the suite of broadband services, including voice, video, and high-speed data services."

Mike Parton, chief executive officer of Marconi Communications' worldwide business, added, "This contract is a clear demonstration that the acquisitions of RELTEC and FORE are beginning to bear fruit and that our integration program is achieving success. We are extremely proud of having earned this business. BellSouth has been an important customer for us for many years and has been in the forefront of fiber optic distribution since its decision in 1995 to deploy `fiber to the curb' technology as the first choice in residential new construction. The combination of Marconi Communications' leadership in fiber optic deployment and FORE Systems' expertise in ATM has created an important platform for very rapid broadband service deployment."

This deployment is the largest commitment to date from any major carrier to drive high-speed fiber optic based technology deep into its network. Where deployed, the Marconi next generation Deep Fiber technology will drive fiber optic distribution to within 500 feet of subscribers. Fiber deployment deep in the local loop enables symmetrical high-speed services through traditional customer interfaces. The demand for such high-speed, high-bandwidth services is insatiable. The ultimate response to this demand is driving fiber to the edge of customer premises. This network architecture will allow BellSouth to deliver a menu of traditional voice services, as well as cable television and high-speed Internet connectivity. Unlike alternative network architectures such as Fiber to the Node (FTTN) and Hybrid Fiber Coax (HFC), this Deep Fiber solution will allow maximum symmetrical bandwidth to be delivered to the customer.

Mike Pratt, executive vice president and general manager of Marconi Communications' Access Systems business unit, said, "There is no question that with this deployment, by the end of 2000, Marconi will have enabled the largest installed base in North America of broadband network equipment delivering voice, video and high-speed Internet connectivity."

BellSouth (NYSE:BLS) is a $25 billion communications services company. It provides telecommunications, wireless communications, cable and digital TV, directory advertising and publishing, and Internet and data services to nearly 36 million customers in 20 countries worldwide. In the U. S., BellSouth provides telecommunications services in nine southeastern states: Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. With headquarters in Atlanta, BellSouth serves more than 24 million local telephone lines and provides local exchange and intraLATA long distance service over one of the most modern telecommunications networks in the world.

Marconi plc is one of the world's fastest growing communications and IT companies with a strong record of innovation and technological breakthroughs. It is a world leader in smart broadband optical networks and it supplies the key technologies for the New Public Network and the Internet. With 45,000 employees worldwide and sales in more than 100 countries, it is based in London, listed on the London Stock Exchange and appears in the FTSE-100 index.

NOTE TO EDITORS: In the word "DISC*S" noted in this news release, there is an asterisk between "DISC" and "S" -- this symbol may not appear properly in some systems.