Corning Cable Systems To Increase Optical Cable Manufacturing Capacity.

Business Editors/High Tech Writers

HICKORY, N.C.--(BUSINESS WIRE)--June 19, 2000

Building new facility to meet increasing industry demand

Corning Cable Systems, the industry-leading manufacturer of optical cable and related hardware, today announced that it intends to build a state-of-the art manufacturing facility in Hickory, adjacent to its existing Telecommunications Cable Plant, to produce flame retardant optical fiber cable.

The new 250,000 square foot facility, expected to be complete in mid-2001, will initially employ approximately 300 people.

Corning Cable Systems, a wholly owned subsidiary of Corning Incorporated (NYSE: GLW) is increasing its manufacturing capacity to keep pace with the growth and demand for its fiber products, while also allowing for new product development and commercialization.

According to Thomas J. McMahon, vice president, manufacturing, cable operations, the new facility is essential for Corning Cable Systems global presence and to meet customer requirements.

"This new facility will be instrumental in Corning Cable Systems' ability to meet increasing demand for flame retardant cables used in public and private networks, as well as OEM applications," Mr. McMahon said. "This construction is necessary to the growth of our business as we maintain a quality commitment to offer a portfolio of products and unparalleled customer service," he said.

Currently, flame retardant cables are manufactured at Corning Cable Systems' Specialty Cable Plant (SCP), where cable assemblies are also produced. When the new optical fiber cable plant is operational, the other facility at 1928 Main Avenue SE will be exclusively dedicated to manufacturing cable assemblies.

Flame retardant cables are required to meet building life safety codes limiting flame propagation and smoke production in the event of a fire. Flame retardant cables include single fiber interconnect and multiple fiber distribution cables used for optical fiber based systems within a building, as well as for high fiber indoor/outdoor cables that connect long-haul outside plant cables to the switching gear within a building.

Furthermore, single fiber flame retardant cables are used extensively within cable assemblies for the booming market of photonics components like optical amplifiers and wave division multiplexing. The rapid proliferation of high-speed optical fiber networks is growing the demand for flame retardant cables by more than 40% a year. As optical fiber reaches closer to the home, closer to the business, and closer to the desk, this growth will increase to even higher rates in the future.

Headquartered in Hickory, N.C., Corning Cable Systems has manufacturing facilities located worldwide including the United States, Canada, Mexico, Latin America, Asia, Australia, and Europe.

Corning Cable Systems, committed to providing superior customer-support services and unparalleled product quality, has more than 14,000 employees in 20 countries. With sales of $2.2 billion, Corning Cable Systems is the leading manufacturer of fiber optic and copper communications system solutions for voice, data, and video network applications worldwide.

Established in 1851, Corning Incorporated ( www.corning.com ) creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television and other communications-related industries. The company also uses advanced materials to manufacture products for scientific, semiconductor and environmental markets. Corning revenues for 1999 were $4.7 billion.

(Editor's Note: A contractor has not been identified.)