Fujitsu Wraps Up Solid First Half; Increase Seen in Innovative Customers Relying on New Generation Optical Transport Solutions.

Business Editors & High Tech Writers

RICHARDSON, Texas--(BUSINESS WIRE)--June 26, 2001

Beating back industry odds, Fujitsu Network Communications, Inc. continued adding to its score card by expanding on the company's innovative and industry leading products available, adding coveted marquee customers and by retaining the title of "The Number One Supplier of SONET Metro Equipment."

"Fujitsu navigated a tough course and made a couple of hole-in-ones along the way," said Ron Martin, executive vice president and chief operating officer. "Clearly the FLASHWAVE(R) OADX, gives carriers the world's biggest long-haul pipe. While we remain one of the quieter optical transport companies, RHK proved we're the top player in the local metro market with a 42.3 percent share of a $5.5 billion market -- beating the loud companies by more than 20 percent. Our FLASH(TM) 2400 ADX is a potent metro market force that should further our metro dominance."

Customer Highlights

-- WorldCom announced Fujitsu's FLASHWAVE OADX as the winner of its Terabit
Challenge in February, 2001. The FLASHWAVE OADX beat out a number of products,
and is now powering the world's highest-capacity network on the East Coast.
Fujitsu's FLASHWAVE OADX is the world's largest capacity and commercially
available system today, capable of carrying 1.76 terabits per second (Tbps) of
bi-directional traffic.

-- Dynegyconnect, L.P, is deploying the FLASHWAVE OADX for its long haul
network. The company is developing the first nationwide optically switched data
network that will consist of approximately 20,000 route miles and more than 40
points of presence by the fourth quarter of 2001. The network will support
private line, ATM and IP services with circuit sizes of OC-3, OC-12, OC-48 and
OC-192. Fujitsu Network Services is installing, deploying and providing network
management services for FLASHWAVE OADX.

-- Penn Telecom, Inc. maximized more than 300 miles of fiber optic cable
through new and upgraded SONET facilities that feature the FLASH600 ADX. The
company bolstered its telco-grade facilities, improved market coverage, boosted
network utilization and the reliability of its competitive local, broadband and
long distance services in Western Pennsylvania. Their Fujitsu-enhanced network
gives Penn Telecom the ability to offer more reliable, high-bandwidth services
to any customer on its network without using the facilities of another carrier.
The company also established two carrier-neutral, carrier hotels; one in
downtown Pittsburgh and the other in the city of Butler.

-- Integra Telecom Inc. expanded its agreement with Fujitsu to purchase
additional high-capacity FLASH2400 ADX, FLASH600 ADX and FLASH-192 transport
equipment. Integra is deploying the technology to several of its new networks
in Oregon and Washington, enabling the company to increase the quality and
availability of its voice and data services for customers while maintaining
competitive pricing. The Fujitsu FLASH products offer next generation SONET
technology, allowing Integra greater flexibility and growth potential, while
driving down its network costs.

-- Qmedia added to its 100 percent Fujitsu transport network by deploying the
FLASHWAVE 320G to support its real-time interactive production and
collaboration, point-to-point connections, datacasting and server libraries
spread across 44 major metropolitan markets including Boston, New York, Los
Angeles, Miami and Denver. This network will support 640 Gbps of data transport
and gives Qmedia the ability to provision new or incremental services quickly.
Fujitsu Network Services provided equipment installation services.

-- Nava Networks tapped Fujitsu Network Communications to provide terrestrial
WDM links for $600 million international broadband cable network "Nava-1",
which will interconnect South East Asia and Australia. Nava-1 will use
FLASHWAVE OADX terrestrial DWDM system, FLASH 10G SDH equipment, and
NETSMART(R) network management systems for the links between Perth, Adelaide,
Melbourne and Sydney in Australia, to complete the operation and maintenance of
the full 10,500 km (5,830 mile) Nava-1 network on a turnkey basis.

-- Smithville Telephone saved 80 percent of its network costs by deploying
FLASH600 ADX multi-service SONET platform at the core of its advanced
multi-city network in Southern Indiana. This multi-ring network supports
Smithville's total service needs within its operating territory, and enables
the company to write more service tickets for high speed access services.
Fujitsu Network Services provided engineering, test and turn-up services.

Product News Highlights

-- FLASHWAVE OADX began shipping as the world's highest capacity

all-optical add/drop platform capable of transmitting 1.76

terabits per second up to 4,000 kilometers, without

regeneration, giving 10 percent more capacity than the next

leading competitor while supporting 40 Gbps signals. Its

massive capacity allows long-haul service providers to more

than meet the skyrocketing demand for bandwidth in the core of

their network. The small-footprint platform offers fully

reconfigurable OADM capability, uses tunable lasers and

operates in a variety of network configurations, including

point-to-point, ring, and mesh. During 4Q01, 22-channel

tunable laser will replace current 4-channel tunable lasers,

further reducing capital expenditures by carriers.

-- FLASH 2400 ADX, a next-generation SONET add/drop multiplexer

packs the industry's highest OC-48 drop capacity provides, is

a data-ready platform upgradable from OC-48 (2.5 Gbps) to

OC-192 (10 Gbps), and is the industry's first SONET

(Synchronous Optical Network) network element to support DS3

tributary drops from an OC-192 line signal. It supports six

full drop OC-48s, in a single seven-foot rack, using just 400

watts of power and two complete OC-192 systems (or one 4-fiber

BLSR system) that can fit in a single shelf. An upgradable

switching fabric and line optics allows the platform to scale

in system capacity and capabilities to meet changing network

requirements, while supporting the broadest range of

integrated tunable narrowband OC-48 or OC-192 optics for dense

wavelength division multiplexing applications. During 4Q01,

22-channel tunable laser will replace current 4-channel

tunable lasers further reducing capital expenditures by

carriers. Direct data interfaces such as 10/100 Base-T and

Gigabit Ethernet (GigE) will also be available in 4Q01.

-- FLASH 600 ADX will offer GigE functionality in 4Q01, offering

10/100 Base-T support allowing for transport of Ethernet, ATM

and SONET on existing networks. The GigE addition allows

virtual private network services, router connectivity and

Ethernet transport. Universal interface slots provide GigE and

10/100 Base-T capability. Carriers benefit from a more

efficient use of their networks and end users save on network

router costs. It accomplishes this with its advanced optical

amplification and built-in spectrum analyzers, which maximize

the optical signal and reduce noise, achieving greater

distances.

-- 44-channel tunable laser technology, a world's first, was

demonstrated at Supercomm this month. The laser is configured

with distributed feedback laser array integration. Each laser

cavity covers four wavelengths and includes temperature

control and wavelength-locking circuitry. A built-in silicon

optical amplifier enables large laser output power

requirements for 40 Gbps, and is capable of being programmed

down to lower settings for OC-192 or OC-48 using the same

laser. This technology should be commercially available 4Q02.

Fujitsu Network Communications, Inc., (FNC) provides optical transport solutions for the Internet, by designing, manufacturing, and installing next generation SONET and DWDM systems that redefine the transmission of all traffic over networks. Fujitsu's FLASHWAVE OADX is the world's largest capacity system available, delivering 1.76 terabits per second bi-directionally. The company is the top supplier of SONET equipment with over 40 percent of the metro market. FNC is a $2.6 billion division of Fujitsu Limited (TSE: 6702), a provider of comprehensive networking solutions for the global marketplace. For more news and information please visit http://www.fnc.fujitsu.com.

FLASH(R), FLASHWAVE(R) and NETSMART(TM) are registered and/or proprietary trademarks of Fujitsu Network Communications, Inc.