China Unicom, ADC Launch Homeworx System Technology Trial; Trial completes first stage in multi-phase plan for large-scale deployment of telecommunications services throughout China.

MINNEAPOLIS--(BUSINESS WIRE)--July 24, 1996--ADC Telecommunications, Inc., announced today that China Unicom has launched a technology trial of ADC's Homeworx(TM) hybrid fiber/coax system in Beijing, China. The laboratory trial, turned up on July 19 -- the second anniversary of the forming of China Unicom as an alternative service provider in China -- is transmitting integrated voice, data and video services.

The trial marks the culmination of the first phase of an agreement signed by ADC and China Unicom in March of this year. Additional phases of the agreement call for field trials in the fall of 1996; commercial deployment of the Homeworx system is scheduled to begin in the first half of 1997, with large scale deployment in the second half of 1997.

"ADC and China Unicom have successfully completed the first phase of their agreement, which provides the foundation for accomplishing the goals set forth in China's current five-year plan for deploying telecommunications services throughout that country," said Richard Barcus, vice president of marketing for ADC's broadband communications division. "The opportunity for the two companies is extensive, as China will install between 75 million and 100 million new lines of telephony service over the next five years, and a significant portion of these services is expected to be delivered over a hybrid fiber/coax network."

ADC has been active in China since 1994 when the company established a joint venture -- Shanghai ADC Telecommunications Equipment Co., Ltd. -- for the manufacturing and marketing of fiber-optic video transmission equipment. ADC has formed alliances with other service providers in China to assist in advancing the country's telecommunications infrastructure.

The Homeworx HFC platform is a fully integrated, broadband loop transport system. It supports services such as basic cable television and standard telephony, and offers a clear migration path to future digital broadband services. The Homeworx system, based on OFDM (orthogonal frequency division multiplexing) technology, offers a number of key advantages over competing HFC systems. OFDM technology provides twice the bandwidth efficiency of competing technologies, enabling the Homeworx system to accommodate 240 DS0s in one six megahertz channel. In addition, OFDM provides superior protection against narrowband interference, which is especially common in the upstream spectrum.

Partners in the alliance that was signed last March include China United Telecommunications Corporation (China Unicom), a Chinese company approved and licensed by the China State Council to engage in telecommunications operation and management; and Communications System Corporation (ChinaCom), a Chinese company affiliated with the Ministry of Electronics Industry (MEI). MEI is a large shareholder of both China Unicom and ChinaCom.

ADC Telecommunications, Inc., is a leading supplier of transmission and networking systems used to deliver voice, data and video services. The company holds a preeminent market position in physical connectivity products for fiber-optic, twisted-pair, coaxial and wireless networks. Wholly owned business units include ADC Video Systems, ADC Fibermux, ADC Kentrox, AOFR, ITS Corp., Metrica Systems and ADC Solitra Oy. The company also operates international business units in Australia, Belgium, Canada, China, England, Mexico, Singapore and Venezuela. Revenues for fiscal year 1995 were $586.2 million.

"Homeworx" is a trademark of ADC Telecommunications, Inc.

CONTACT: Lynne High, ADC, 612/946-3136