Lucent Technologies and Uniphase Deliver Breakthrough Undersea Lasers to Tyco Submarine Systems Ltd.; Contract Worth $150 Million.

ALLENTOWN, Pa.--(BUSINESS WIRE)--Dec. 22, 1998--Lucent Technologies' Microelectronics Group today announced it is delivering new undersea laser modules to Tyco Submarine Systems Ltd. (TSSL), in a contract valued at more than $150 million to Lucent over a two-year period. The modules, which contain laser chips made by Uniphase, will support an increase of up to eight times in the voice and data capacity of new undersea communications systems.

The modules are used in optical amplifiers, or repeaters, which are installed at many points along a fiber-optic cable route to boost the strength of digital signals that carry voice and data traffic. Called pump laser modules, they provide the energy needed to boost the photons that make up the transmission signal.

These modules provide less noisy optical power than other similar devices, making it possible to support more information on each fiber channel while packing more channels on the same fiber. They are the first of their kind to meet the ultra-stringent reliability standards for undersea cable systems.

TSSL, a leading supplier of undersea communications network systems, will be the first to deploy Lucent's modules. By increasing the capacity of undersea transmission systems, TSSL will make it possible for communications service providers to satisfy the burgeoning demand for global Internet connectivity and other telecom and data communications services.

"The skyrocketing demand for capacity caused by the Internet and global telecom network growth is driving the need for major advances in undersea systems," said Neil Garvey, president of TSSL. "This latest breakthrough allows us to deliver increased capacity to our customers for the undersea communications systems they will deploy around the world."

The new pump laser modules were developed by Bell Laboratories, the research and development unit of Lucent Technologies. An integral part of the module is a semiconductor laser chip made of aluminum gallium indium arsenide, designed and manufactured for Lucent by the Uniphase Laser Enterprise (ULE) division of Uniphase Corporation. ULE is recognized as a world-leader in this kind of technology, also referred to as 980-nanometer (nm) laser technology, for the color of light that these lasers produce.

Pump lasers operating in the 980-nm range make possible cleaner (or lower-noise) signals than those operating in the 1480-nm range, which is the typical range of pump lasers in today's undersea transmission repeaters. This low-noise characteristic permits the 980-nm lasers to support higher transmission capacities. Pump lasers that operate at 980 nm have been deployed in land-based optical transmission repeaters, but until now they haven't demonstrated the 29-year lifetime-rating needed to meet the ultra-stringent reliability demands of undersea systems.

"Lucent's expertise in the development and manufacture of laser modules, and Uniphase's expertise in 980-nm laser chip technology, enabled us to meet Tyco's high-reliability and certification requirements," said Dan DiLeo, vice president of the optoelectronics components business of Lucent's Microelectronics Group. "We're excited to be part of the cutting edge of undersea transmission technology."

To ensure TSSL's required performance of the 980-nm pump lasers, Lucent and Uniphase conducted rigorous certification stress tests. These tests made it possible to identify potential performance problems of the devices and drive failure rates to nearly zero.

"We worked extremely closely with Lucent in the certification process of the modules to ensure that the reliability met TSSL's undersea standards," said Kevin Kalkhoven, chairman and CEO of Uniphase. "We each focused on our own area of expertise and together created a system that is an important step towards increasing the level of bandwidth available in undersea repeaters today."

The pump laser modules will be used with Lucent's TrueWave(R) XL Fiber -- a new high-power fiber that allows network providers to dramatically improve the speed and performance of their undersea networks. In October, TSSL signed a $200 million agreement with Lucent to be the first undersea cable system maker to use TrueWave XL Fiber along with Lucent's WaveStar bandwidth management system.

The fiber supports dense wavelength division multiplexing (DWDM), which handles multiple laser signals, or channels, on a single fiber strand. DWDM allows communications systems providers to maximize the bandwidth capability of fiber-optic cables and enables the delivery of multimedia services such as simultaneous voice, data and video transmission.

TSSL, a wholly owned subsidiary of Tyco International Ltd., is an independent supplier of undersea communications network systems and services. TSSL owns and operates a fleet of eight cable ships for the installation and lifetime maintenance of the undersea communications networks. The manufacturing capabilities of TSSL are highlighted by cable, repeater and transmission equipment manufacturing. TSSL has successfully supplied 65 undersea cable networks connecting over 100 countries, and is presently implementing undersea communication networks valued in excess of $4 billion. For more information on TSSL, visit its web site at http://www.submarinesystems.com.

Uniphase Corporation is an optoelectronics company that designs, develops, manufactures and markets fiber optic telecommunications components and modules, laser subsystems and laser-based semiconductor wafer defect examination and analysis equipment. The company's telecommunication products include semiconductor lasers, high-speed external modulators, transmitters, fiber Bragg gratings and optical modules for fiber-optic networks in the telecommunications and cable television industries. For more information on Uniphase, visit its web site at http://www.uniphase.com.

Lucent Technologies designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronics components. Bell Laboratories is the research and development arm for the company. For more information on Lucent Technologies, headquartered in Murray Hill, N.J., USA, visit its web site at http://www.lucent.com.

Lucent's Microelectronics Group designs and manufactures integrated circuits and optoelectronic components for the computer and communications industries. More information about the Microelectronics Group is available from its web site at http://www.lucent.com/micro.

TrueWave is a registered trademark of Lucent Technologies.

The statements contained in this press release regarding Uniphase Corporation that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Such forward looking statements include, but are not limited to, statements regarding the performance of products produced by Uniphase and future demand for the products. Actual results could differ materially from those projected in any forward-looking statements as a result of a number of factors, including those detailed in the "Risk Factors" as set forth from time to time in the Uniphase reports on Form 10-K, 10-Q and Annual Reports to Stockholders. The forward-looking-statements are made as of this date hereof and Uniphase assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ materially from those projected in the forward-looking statements.