BlueStone Capital Partners Announces Investment Opinion on Sycamore Networks.

Business Editors

NOTE TO EDITORS: The following is an investment opinion issued by

BlueStone Capital Partners

NEW YORK--(BUSINESS WIRE)--Dec. 19, 2000

Bluestone Capital Initiates Coverage on

Sycamore Networks With a 3-2 Rating

Senior Analyst Susan Kalla from BlueStone Capital initiates coverage on Sycamore Networks (SCMR; NASDAQ- $50.13) with a 3-2 (Underperform - Market Perform) rating, an intermediate price target of $40 and a long-term target price of $60.

Analyst's Summary

-- Well-positioned fiber optics company, but could be subject to downdraft of
telecom carriers and dot.coms.

-- Transport products face competitive pressures, pushing down pricing 25%-30%
per port.

-- Optical switching products face development challenges in MEMs.

-- Hypergrowth could reaccelerate long term after telecom consolidates and
picks up investment pace.

-- Initiating coverage with a 3-2 rating.

BlueStone Capital is a full service investment banking and brokerage firm focused on identifying investment opportunities in the emerging growth sector. BlueStone Capital assists clients in maximizing their growth by providing sophisticated investment strategies that are designed to achieve clients' strategic, operating and financial goals. Member NASD, SIPC, and ISMA.