Corvis to Acquire Algety Telecom, Extends Optical Networking Leadership.

Business and Technology Editors

COLUMBIA, Md.--(BUSINESS WIRE)--May 5, 2000

Pioneering terabit technology will enable service providers to

easily scale from OC-48 to OC-192 and OC-768 to create

fast, high performance all-optical networks

Corvis Corporation, a leader in delivering all-optical Internet infrastructure, today announced an agreement to acquire Algety Telecom, a privately-held company that develops terabit capacity long-haul transmission systems, for an undisclosed number of shares. The acquisition of this start-up breakthrough soliton-based optical technology further extends Corvis' product offerings, delivering both terabit capacity and ultra-long reach capabilities required to meet the growing demand of broadband services.

Algety has developed soliton-based, dense wave division multiplexing (DWDM) transmission systems that enable 40 Gbps, as well as 10 Gbps, transmission to be sent over long distances in a purely optical form, providing carriers significant cost advantages while increasing the efficiency and reliability of their networks. Algety holds the current record for a terrestrial soliton transmission of 1 terabit/second over a distance of 1000km - the equivalent of transmitting the entire contents of the Library of Congress in less than 30 seconds down a single fiber.

"Carriers are searching for innovative technology that increases the capacity of their networks while lowering the overall cost of ownership," said Dr. David Huber, President and CEO of Corvis. "The addition of Algety's ground-breaking soliton technology, combined with our leadership in optical networks and Raman amplification technology, further enhances Corvis' ability to deliver the highest capacity, longest reach optical network solution available today."

"This is a combination of today's most innovative optical networking companies who are defining the optical Internet," said Dr. Thierry Georges, President of Algety Telecom. "Our pioneering products and shared vision of all-optical networking will revolutionize the way traffic is moved and business is conducted in the new Internet-driven economy."

Solitons are specially shaped lightwave pulses that balance the effects of fiber dispersion and fiber non-linearity to allow higher bit rate transmission over longer distances than conventional systems. The combination of Corvis' leadership in Raman amplification and Algety's leadership in soliton technology could lead to industry-leading extremely high capacity (40 Gbps), ultra-long reach backbone capabilities.

"European service providers are searching for intelligent all-optical networking capabilities to meet the unprecedented demands of the Internet", said Glenn Falcao, Executive Vice President of Corvis. "This acquisition establishes a solid presence in Europe from which Corvis can provide European carriers the high-capacity, all-optical switching, transport and network management required for the next generation Internet backbone."

"This acquisition is a strong example of Corvis' dedication to reinventing optical networking," said Moise Augis, Vice President of Business Development. "Corvis is committed to incorporating the best optical technologies to give our customers access to the best networking solutions available in the market today."

The Corvis suite of all-optical products provides the industry's first end-to-end optical network solution, offering high-capacity, all-optical switching and transport with integrated network and bandwidth management required for next-generation, terabit IP networks. Corvis recently announced contract agreements with Broadwing Communications (NYSE: BRW) and Williams (NYSE: WCG) Communications for its suite of all-optical networking products.

Algety, which was founded in 1999, has 100 employees and is headquartered in Lannion, France. Upon completion of the acquisition, Algety will become a wholly-owned subsidiary of Corvis Corporation, with its operations remaining in Lannion, France.

About Corvis

Corvis Corporation is a privately held all-optical Internet infrastructure company founded by Dr. David Huber, one of the leading figures in the field of optical communications. The company has introduced the first transparent all-optical switching, transport and network management solutions that will revolutionize the way traffic is moved in the new Internet-driven economy. The Corvis all-optical mesh network is the foundation for building the next generation all-optical Internet to meet the explosive growth of users and applications.

Corvis products and services give communication service providers the capability to build a single-layer, transparent, high-capacity all-optical network necessary to quickly accommodate the continuing growth of Internet, video, voice, and other data traffic. This flexibility can result in a significant gain in network capacity using existing fiber in the field. For more information, call Corvis at 443-259-4000 or visit the Corvis web site at www.corvis.com.

Corvis, CorWave, and the Corvis logo are trademarks and/or service marks of the Corvis Corporation.

About Algety Telecom

Founded by veterans of France Telecom in 1999, Algety Telecom is a privately held manufacturer of ultra high-speed fiber optic transmission equipment. Algety's technology is based upon innovative soliton technology applied in a unique combination with advanced wavelength division multiplexing. A current world record-holder for data transmission speed, Algety's technology is targeted at long-haul telecommunication carriers that operate major backbones with high transmission capacity requirements.