Internet Services Shine At Star Telephone With Alcatel Solution; Schools, Hospitals and Businesses Benefit From Exciting New Internet and Data Services.

ASHBURN, Va.--(BUSINESS WIRE)--April 14, 1998--Alcatel Data Networks announced today that Star Telephone Membership Corporation (TMC), an independent operating company (IOC) in North Carolina, is offering high-speed data services over Frame Relay technology based on the Alcatel 1100 HSS(R) Multiservice Network Switch and the Alcatel 1100 QIK(TM) (QUICKFRAD(TM)) Frame Relay Access Device.

The Alcatel solution enables Star Telephone to dramatically increase the performance of its Internet access and Local Area Network (LAN) Interconnection services for its corporate, medical and education customers.

"Alcatel's strong reputation for building and supporting carrier-class networks worldwide was a key factor in the decision-making process," said Danny Britt, Star Telephone's engineering manager. "With a multiservice ATM and Frame Relay platform, we can provide the best possible Internet access and data services to our customers. We have a complete solution from Alcatel, including a comprehensive network management system and a customized service portfolio, "all-in-One(TM) Alcatel Service." One vendor meeting all of these needs significantly reduces network administration costs and improves our ability to offer high quality services to our customers. "

"We are very pleased that we can now offer these important new Internet and networking services to our customers with the Alcatel 1100 HSS solution," said Steve Scharf, marketing manager of Star Telephone. "The local schools were the first to adopt this technology. It has made their Wide Area Networks (WANs) much more efficient and easier to administer. We've also been able to really help them integrate the Internet into the classrom. Now, we're working with corporate clients and medical clinics to develop Virtual Private Network (VPN) and telemedicine applications using the Alcatel 1100 HSS platform."

"We are experiencing an immediate and dramatic network improvement with the Star Telephone Alcatel-based solution," said Dale Weeks, technology specialist, Sampson County School District. "The benefits include affordable, reliable, high-performance multimedia networking resulting in more return on our investment in teachers and teaching materials - and, consequently, increasing our abilities to deliver a quality and diversity of education we couldn't otherwise offer."

The Alcatel 1100 HSS Multiservice Network Switch provides both native ATM and Frame Relay switching. It is the only switch of its kind being delivered today that has independent Frame Relay and ATM switching, with interworking between the two, offering unparalleled broadband networking options. The multiservice switch supports high-bandwidth backbone applications, such as LAN interconnection, circuit emulation, voice and video. RateMaster(R), a patented, proactive traffic control system, provides maximum trunk utilization and optimized network performance.

The Alcatel 1100 QIK product line provides economical access to Frame Relay networks for voice, data and LAN traffic. Multiple virtual circuits from these various traffic types are statistically multiplexed onto one or more physical circuits at network access speeds of 56/64 Kbps to T1/E1. Serial data is converted into Frame Relay packets for transport via any of Alcatel Data Networks' Frame Relay products, providing a total end-to-end solution.

The "all-in-One" global service portfolio offers Alcatel's enterprise and carrier customers 21 individual service products. The cost-effective, modular nature of "all-in-One" allows customers to choose a tailored service solution, from single-location support to multinational provision of several different services. Bronze, Silver, and Gold packages offer different levels of services, coverage, and response times for support products such as technical assistance, remote diagnostics, software and hardware support, and repair/replacement.

Anticipating the needs of its customers for total solutions supporting the convergence of voice and data in their networks, Alcatel Data Networks recently became part of a larger division within Alcatel Telecom called the Enterprise and Data Networks Division (EDD). EDD provides total solutions to enterprises and carriers migrating their networks towards next generation broadband infrastructures by offering integrated solutions based on Alcatel's 1100 family of data switching products as well as the Alcatel 4000 family of voice communications systems. Alcatel Data Networks is a leading provider of data communications solutions for public and private networks throughout the world and has built more than 400 major data networks, including 65 national carrier networks. With more than 3 million lines installed, the Alcatel 4400 family is the European market leader in business networking systems. EDD is part of Alcatel Telecom, one of the world's largest manufacturers of communications equipment with operations in over 130 countries. In 1997, the Telecom segment of Alcatel Alsthom registered sales of US$ 14.17 Billion. Company news and product information is available at: http://www.adn.alcatel.com. -0-

1100 HSS and Ratemaster are registered trademarks of Alcatel. 1100 QIK, QUICKFRAD, and all-in-One are trademarks of Alcatel.

CONTACT: Alcatel Data Networks

Katie Sheldon Hammler, 703/724-2249

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