Corning Incorporated Introduces Corning Submarine Leaf New High-Performance Optical Fiber for Undersea Applications.

CORNING, N.Y.--(BUSINESS WIRE)--October 26, 1998--

Corning Now the Only Fiber Manufacturer to Offer Large Effective Area

Fibers for Both Terrestrial and Submarine Applications

Corning Incorporated (NYSE: GLW) today introduced a new large effective area submarine optical fiber, Corning(r) Submarine LEAF(r) fiber. The new fiber, which was unveiled at the IBC Submarine Communications Conference in London, is designed to provide superior performance in multi-channel, high-bit-rate undersea applications, company officials said. Submarine LEAF's large effective area enables it to transmit 16 channels at 10 gigabits per second over transoceanic distances.

According to Robert V. VanDewoestine, director of Worldwide Fiber Technology for Corning Incorporated, "Submarine LEAF fiber boasts an effective area 30 per cent larger than standard non-zero dispersion- shifted fibers (NZ-DSF). This enables the fiber to minimize non-linear effects, which are the main cause of degradation in overall system performance. Submarine LEAF fiber represents the next generation of optical fiber for high-speed undersea networks, repeatered or unrepeatered.

"Today's installed submarine systems are currently operating at data rates of 2.5 gigabits per second with up to 16 channels," VanDewoestine continued. "Submarine LEAF fiber has the capability to deliver four times the current capacity, which will allow network builders room to move into the future. Additionally, submarine applications require high-powered, long-reach capabilities and Submarine LEAF fiber will enable greater distances between amplifiers, while also accommodating higher data rates.

"With the addition of Submarine LEAF fiber to Corning's NZ-DSF product line, Corning is the only fiber manufacturer to offer NZ-DSF fibers with large effective area for both terrestrial and submarine applications," he said.

Submarine LEAF fiber is the latest in a series of submarine fiber offerings from Corning. In 1994 Corning first introduced Submarine SMF-LST fiber, and then enhanced the product in 1996 to allow for multi-wavelength operation for undersea applications.

Earlier this year Corning introduced LEAF(r) optical fiber, the first commercially available large effective area fiber for terrestrial applications. LEAF fiber has quickly become the fiber of choice for advanced high-data-rate terrestrial installations. To date, key carriers, such as Level 3 Communications, Williams Communications and IXC Communications, have selected LEAF fiber over other commercially available NZ-DSFs with smaller effective areas.

"Corning broke the bandwidth barrier with terrestrial LEAF fiber," VanDewoestine said, "and with our experience in both large effective area fiber designs and submarine applications, we are now able to add an advantaged submarine fiber to our product portfolio."

Corning's leadership in submarine fiber designs was recognized earlier this year when Corning was selected as the exclusive fiber sponsor for Project OXYGE(NT), the world's first global undersea optical fiber network. The sponsorship agreement, which was announced in April 1998, provides Corning with the opportunity to supply submarine fiber from its line of NZ-DSF fibers for use throughout the OXYGEN network. "Use of LEAF technology will allow us to build a more efficient and cost-effective network than we otherwise could," said Neil Tagare, chairman and CEO of Project OXYGEN Ltd. "Submarine LEAF optical fiber will provide us with the ideal transport medium to meet the needs of today and permit cost-effective growth of the network in the future," Tagare continued.

According to Kevin Able, commercial operations manager for Submarine Fiber for Corning Incorporated, "Submarine LEAF optical fiber is currently undergoing qualification and evaluation with the key global submarine cable and system providers, and we expect deployment of the new fiber to begin by early 1999." Able anticipates that the demand for Submarine LEAF optical fiber will grow rapidly, as it has with terrestrial LEAF fiber. Industry analysts project that by the year 2000, the total amount of fiber installed in major global undersea network projects will approach 1.7 million kilometers. "The capabilities of Submarine LEAF optical fiber will allow Corning to be well positioned to meet the fiber bandwidth demands of the rapidly growing undersea market," said Able.

Established in 1851, Corning Incorporated creates leading-edge technologies for the fastest-growing segments of the world's economy. Corning manufactures optical fiber, cable and components, high-performance glass and components for television, and other electronic displays for communications and communications related-industries. Corning also manufactures advanced materials for scientific and environmental markets. Corning's total revenues in 1997 were $3.5 billion. More information on Corning is available at http://www.corning.com.

(Editor's notes: Corning and LEAF are registered trademarks of Corning Incorporated and SMF-LS is a trademark of Corning Incorporated. An electronic copy of this release and complimentary visuals are available via our website at www.corningfiber.com or through the above-named press contacts.)