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Technology Stocks : Alcatel Telecom (ALA)

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To: Bill Harmond who wrote (35)8/1/1997 3:58:00 PM
From: Sam Citron   of 285
 
Wednesday July 30 8:04 AM EDT

Company Press Release

Alcatel Wins SONET Contract and Sole Source Supplier
Status From American MetroComm

RICHARDSON, Texas--(BUSINESS WIRE)--July 30, 1997--New Orleans-based American
MetroComm Corporation (AMC), a competitive local exchange carrier (CLEC) providing local,
long-distance and enhanced telecommunications services throughout the Gulf South, has selected
Alcatel Network Systems, Inc. as its sole source supplier of digital cross connects and advanced
SONET (synchronous optical network) transport equipment.

The total value of this relationship for Alcatel is expected to exceed $30 million.

Using Alcatel equipment, AMC now has an operational network serving primarily the New
Orleans central business district and networks under construction in three other cities. AMC's
networks feature ring architectures using Alcatel's high-capacity OC-48, OC-12 and OC-3 rate
(2.4 Gbit/s, 622 Mbit/s and 155 Mbit/s, respectively) network electronics to ensure network
integrity and redundancy. Alcatel also is installing the Alcatel 1320 NM network management
system, which provides full visibility and control of the network in all cities from AMC's network
operations center in New Orleans.

``Alcatel has taken the time and made the investment to understand the needs and issues related to
the CLEC market,'' said Gary George, president of AMC. ``With this knowledge, they have truly
differentiated themselves from any other vendor.''

``Alcatel understands that for AMC to be postured competitively as a CLEC, speed of service
delivery, reliability, and economics are critical. Our business partnership and technical solution
positioned AMC to meet these objectives,'' said Jeana Cunningham, director of CLEC Sales at
Alcatel. ``Also contributing to our success in this account is Alcatel's concentration on product
development for the CLEC market segment, as well as dedicated sales, engineering and customer
support resources for this rapidly-growing market.''

Incorporating Alcatel's comprehensive CLEC-focused product offerings allows AMC to meet the
growing customer demand for switched and non-switched dedicated voice, data and a wide range
of broadband (e.g., Internet) services. Alcatel ring networks offer advanced protection against
service interruptions, provide immediate service restoration, and feature unique characteristics that
make it easier to add new customers and provide new services.

Alcatel, part of the Alcatel Alsthom group, currently works with partners in over 125 countries on
projects which span the full spectrum of communications systems. A leading systems integrator in
the telecommunications field worldwide, Alcatel manufactures advanced digital switches,
transmission systems, broadband products, access products, radio mobile communications
systems, business systems, systems and products for space and defense, and components.
In 1996, these activities registered total sales of FF 71 billion

($13.65 billion). Alcatel Alsthom trades on the Bourse de Paris and the New York Stock
Exchange (NYSE:ALA - news).

American MetroComm Corporation, a privately held company, is an integrated
telecommunications service provider to Tier II and Tier III markets in the Gulf States. The
Company develops, constructs, and operates digital fiber-optic networks to provide local, long
distance and enhanced data communications services to commercial end users, internet service
providers, and wholesale customers such as long-distance carriers.
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