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Technology Stocks : Alcatel (ALA) and France

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To: Tunica Albuginea who wrote (1406)3/7/2000 9:27:00 AM
From: Tunica Albuginea  Read Replies (1) of 3891
 
ALCATEL REINFORCES LEADERSHIP BY DELIVERING NEXT-GENERATION OPTICAL COMPONENTS

ALCATEL REINFORCES LEADERSHIP BY DELIVERING NEXT-GENERATION OPTICAL COMPONENTS

alcatel.com

ÿOFC, Baltimore, March 7, 2000 - Alcatel (NYSE:ALA), a global leader inÿ
ÿcommunications and networking, today unveiled several breakthroughs
ÿin the commercialization of new optical technology that will bring high-speedÿ
ÿtelecommunications networks to market faster and at significantly
ÿless cost than before. It also announced a significant expansion of itsÿ
U.S. production facilities for optical components.
ÿAlcatel already leads the industry in the worldwide deployment of opticalÿ
ÿtransport systems that carry soaring volumes of Internet and voice traffic.
ÿNow the company is announcing four major new areas where it isÿ
ÿreinforcing its leadership in optical components:

ÿÿÿÿ Already a major supplier of active optical gear, Alcatel will begin
ÿÿÿÿ selling passive optical devices, including Arrayed Wave Guides that
ÿÿÿÿ process up to 40 separate wavelength of light.
ÿÿÿÿ Alcatel is introducing a new generation of compact optical amplifiers
ÿÿÿÿ that will dramatically lower the costs of installing Dense Wavelength
ÿÿÿÿ Division Multiplexing (DWDM) systems in metropolitan areas, a market
ÿÿÿÿ many analysts believe is set to explode.
ÿÿÿÿ Alcatel announced availability of a new class of laser pumps, which willÿ
ÿÿÿ drive very long haul optical networks that need signal regeneration
ÿÿÿÿ only once every 3,000 kilometers.
ÿÿÿÿ Alcatel is introducing a highly integrated 10 gigabit-per-second (OC-192)
ÿÿÿ optical interface, which will cut the size and cost of high-speed
ÿÿÿÿ transmission equipment.

ÿLast fall, the consultancy RHK named Alcatel the global leader in DWDMÿ
market share, counting both submarine and terrestrial long-haul optical
ÿtransmission systems. Alcatel, which was the first company to introduceÿ
DWDM lasers in 1995, is also among the leading suppliers of optical
ÿsystems components, with sales in the range of $200 million in 1999.ÿ
That figure is expected to grow more than 50 percent this year.ÿ

ÿUntil now, Alcatel has sold only active components such as lasers, opticalÿ
amplifiers and optical interfaces. But the company today is announcing
ÿits expansion into the passive component business, including a 16-channelÿ
Arrayed Wave Guide. This product, which will be widely available at
ÿthe end of Q2, allows the multiplexing and demultiplexing of 16 differentÿ
wavelengths of light on a single chip. A prototype 40-channel version is
ÿalso on display at the Optical Fiber Communications show.ÿ

ÿRecognizing the huge potential of the metropolitan transport market, Alcatelÿ
has also developed a new generation of low-cost, compact optical
ÿamplifiers and lasers. These will pave the way for transmission equipment
costing only half as much-and taking up only one third as much
ÿspace-as previous systems. The favorable economics should greatlyÿ
accelerate deployments of metro DWDM. Seeking to slash the costs of
ÿdeploying and maintaining long-haul networks, many carriers are investigatingÿ
the potential of fiber that exploits the so-called Raman
ÿamplification effect, which lets signals travel without regeneration as far
as 3,000 kilometers-roughly 10 times the distance of ordinary networks.ÿ

ÿAlcatel is pleased to announce the immediate availability of specialÿ
ÿlaser pumps tuned to the special frequencies that make this revolutionary
ÿeffect possible.ÿ

ÿLast but not least, Alcatel is maintaining its position on the leading edge
ÿof transmission technology by introducing a 10 gigabits-per-second
ÿoptical interface that integrates the laser, laser driver, alarms and multiplexer
ÿin a single compact unit. The high level of integration allows
ÿcustomers to reduce the size, cost and power requirements of their systems.
ÿThe unit, which should be available at the end of Q1, will be fully
ÿcompatible with equipment expected from Lucent and Hitachi,
ÿassuring customers peace of mind.ÿ

ÿIn order to better serve its North American customers, Alcatel also saidÿ
ÿtoday that it will expand U.S. manufacturing of optical components by
ÿopening a 3,000-square-meters facility in Plano, Texas in March.ÿ
ÿThe facility will house about 100 employees, up from 60 currently engaged in
ÿU.S. production.ÿ

ÿ"Our exciting announcements today confirm Alcatel's leadership in theÿ
ÿoptical transport business and prove that we are ready to meet the
ÿmost exacting customer requirements with innovative products at theÿ
ÿright time," said Philippe Bregi, chief operating officer of the Optronics
ÿbusiness unit of Alcatel. "When it comes to serving our valued telecommunications
ÿcustomers with next-generation technology and service, we
ÿwill not be beaten."ÿ

ÿAbout Alcatelÿ

ÿThe Optronics business unit of Alcatel, markets a full range of devices and
ÿsolutions for fiber optic communications. Operating state-of-the-art
ÿmanufacturing plants in France and in the USA, it is a leading supplier of
ÿDWDM lasers, photodetectors, optical amplifiers, high-speed interface
ÿmodules and key passive devices such as arrayed waveguide multiplexers
ÿand Fiber Bragg Grating filters.ÿ

ÿAlcatel builds next generation networks, delivering integrated end-to-end voice
ÿand data communications solutions to established and new
ÿcarriers, as well as enterprises and consumers worldwide.ÿ
ÿWith 120,000 employees and sales of EURO 23 billion in 1999, Alcatel operates in
ÿmore than 130 countries.
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