Corning Incorporated To Acquire Telecommunications Cable Businesses and Full Ownership of Optical Waveguides Australia, Pty Ltd From BICC, plc.

CORNING, N.Y.--(BUSINESS WIRE)--March 1, 1999--

Acquisition will extend Corning's access to worldwide

telecommunications markets - particularly in Europe

Separately, Corning raises guidance to investors for first

quarter 1999 in view of increased demand for high data rate fiber

Corning Incorporated (NYSE:GLW) today announced that it will acquire BICC's telecommunications cable businesses and the 50 percent equity interest in Optical Waveguides Australia, Pty Ltd (OWA), it does not already own for approximately $133 million. The telecommunications cable businesses produce optical and metallic telecommunications cable and provide network installation services. OWA manufactures and sells optical fiber.

Upon completion of the transaction, BICC's telecommunications businesses in Australia, Germany, Spain and the United Kingdom will become wholly owned by Corning Incorporated.

Corning said that the acquisition of BICC's telecommunications cable businesses, together with the recently acquired full ownership of Optical Fibres, will give it a strong international platform from which it can continue to meet the needs of its current cable customers. At the same time, it will position the company to capitalize on new product and business opportunities in the worldwide telecommunications marketplace, particularly in Europe.

Corning said that it sees the potential for robust near-term growth in the European telecom market. "We anticipate strong European demand for optical fiber, cable and photonics in the coming years as a result of deregulation and increased network traffic," said Wendell Weeks, executive vice president, Corning Opto-Electronics. "These are the same drivers that influenced the rapid deployment of optical networks in North America, and there is similar momentum in Europe."

In addition, Corning said that in view of current increased demand for its high data rate fiber, LEAF(R), it was raising its guidance to investors with respect to the first quarter of 1999. Corning now expects an increase of approximately 20 - 25 percent in its earnings for the first quarter of 1999, compared to its first quarter earnings in 1998. "While we would caution investors that it is premature to factor this current surge in market demand into an increase in the earnings outlook for the full year 1999," concluded Roger G. Ackerman, Corning's chairman and chief executive officer, "we are very pleased with the reception our new LEAF optical fiber is receiving for leading, long distance telecommunications networks."

BICC, the international engineering group, was a pioneer in optical cabling in Europe and Asia. The businesses included in this transaction had 1998 sales approaching $400 million and have a number of strong long-term relationships with key network customers in these regions.

Established in 1851, Corning Incorporated creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic components 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's total revenues in 1998 were $3.5 billion. More information on the company is available at www.corning.com, Corning's website.