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Technology Stocks : Alcatel (ALA) and France

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To: Steve Fancy who wrote (1806)5/17/2000 5:26:00 PM
From: zbyslaw owczarczyk  Read Replies (1) of 3891
 
Fast Internet Access: Alcatel ships One Million DSL
Lines in first 4 Months of 2000

First quarter 2000 shipments up nearly 750% over same period last year

PARIS--(BUSINESS WIRE)--May 17, 2000--Alcatel (ALA), the world leader in DSL (Digital Subscriber Line) solutions, announces
today that it has shipped one million central office DSL lines to its worldwide customer base during the first four months of this year,
bringing Alcatel's installed base to a total of 2.7 million lines.

In the first quarter of 2000 alone, Alcatel shipped 737,000 lines, nearly 750 percent above the year ago period. Sixty-eight percent of the
first quarter volume was shipped to service providers in North America, fifteen percent to service providers in Europe, fifteen percent to
the Asia/Pacific region, and two percent to Latin America. Alcatel ADSL SpeedTouch TM CPE shipments reached 190,000 units
worldwide in the first quarter of 2000, a 375 percent above the year ago period.

In calendar year 1999, Alcatel shipped 1.6 million central office DSL lines to its worldwide customer base. The year-to-date shipment
performance in 2000 puts Alcatel on track to conservatively ship about 4 million central office DSL lines by the end of the year. Based on
research conducted by Dataquest, Alcatel commands a leading fifty-five percent share of the ADSL central office line market. With the
recent introduction of its next generation award winning ASAM, which offers the industry's best balance of performance, density, and
power consumption, Alcatel is clearly positioned to expand its market dominance in DSL.

``We are extremely pleased to have reached this shipment milestone so early in the year,'' said Martin De Prycker, President of Alcatel
carrier data activities. ``In 1999, the one million line shipment milestone was reached in the fourth quarter. For Alcatel to reach this
milestone early in the second quarter of 2000 is evidence of the exploding demand for DSL and Alcatel's market and technology
leadership in this space.''

Alcatel defines a central office DSL line shipment as the delivery of an actual central office modem to a service provider for deployment
in their network. This metric yields a true measure of supplier market presence and provides a much better indication of market share than
other metrics such as ``capacity shipped,'' ``DSLAMS installed,'' and ``number of central offices,'' all of which can count empty slots for
modems or unused rack space. The central office line shipment measure also more accurately tracks the service provider community's
immediate ability to support DSL subscribers.

About Alcatel DSL

The world's leading supplier of DSL systems with market leadership in its ASAM and Litespan family of products, Alcatel has been
supplying industry-standard end-to-end ADSL solutions since 1996. Alcatel's DSL access solutions are available on a variety of service
platforms, including the Alcatel ASAM family; the Litespan NGDLC; and environmentally hardened DSLAM packages optimized for
digital loop carrier deployment. The Alcatel ASAM holds over 55 percent of the worldwide central office ADSL market. Alcatel's
Litespan multi-service access platform, an integrated NGDLC/DSLAM, has a global embedded footprint of 57 Million subscribers and
growing. Alcatel's DSL technology is also offered in an advanced range of customer premises equipment, the Alcatel Speed Touch(TM)
family of DSL modems, routers, and integrated access devices supporting multi-line voice and data service over a single telephone access
line.

About Alcatel

Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new
carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of EURO 23 billion in 1999, Alcatel
operates in more than 130 countries. For more information, visit Alcatel on the Internet: alcatel.com

Contact:

Press Relations
Mark Burnworth
972/519-5168
Mark.a.burnworth@usa.alcatel.com
or
Industry Analyst Relations
Julie Buckley
707/792-7820
Julie.Buckley@usa.alcatel.com
or
Investor Relations
Peter Campbell
972/519-4347
Peter.campbell@usa.alcatel.com
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