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Technology Stocks : Alcatel (ALA) and France

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To: zbyslaw owczarczyk who wrote (2454)9/26/2000 6:54:10 PM
From: zbyslaw owczarczyk  Read Replies (2) of 3891
 
France Telecom's N.America DWDM Optical Backbone:

PARIS--(BUSINESS WIRE)--Sept. 26, 2000--France Telecom has selected Alcatel
(NYSE:ALA - news), the world leader in optical networking, to design, build, install and maintain the whole of its DWDM
backbone transmission network in North America.

The network will deliver a potential capacity of 1.6Tbit/s and will span over a distance of 15,000 miles. This success for a turnkey
DWDM network is a major milestone for Alcatel in the North American DWDM marketplace.

France Telecom's North American backbone network will connect 28 points of presence and 270 intermediary sites across the
continent, reaching all North American major cities. This network will be commercialized by Global One to provide end-to-end
services directly to business customers throughout North America. Multi-national companies will be able to take advantage of
interconnection with France Telecom's pan-European backbone network (EBN), extending their reach to major cities across
Europe and giving users access to the highest quality data services. Alcatel's DWDM transmission systems will be used to
transport advanced telecommunications such as Internet Protocol (IP) and Asynchronous Transfer Mode (ATM) as well as
traditional Sonet services in order to carry mission-critical corporate data across the network.

Alcatel will supply 2.5 and 10Gbit/s DWDM (Dense Wavelength Division Multiplexing) transmission systems of its carrier-class
Optinex(TM) range, enabling France Telecom to meet the combined challenges of increased IP and ATM service demand, and
network flexibility. Alcatel's solution also includes an advanced network management system to optimize traffic control and
routing at all network levels.

Jean-Philippe Vanot, Executive Vice President of France Telecom Long Distance, commented: ``We have selected Alcatel
because they are the recognized world leader in DWDM technologies. They are also uniquely positioned to provide us with a
turnkey solution, including network management. The North American backbone network is part of France Telecom's strategy to
fully control its network infrastructure in order to reduce costs and to guarantee service quality. It is also a key asset for Global
One to aggressively address the North American market.''

Christian Reinaudo, President of Alcatel's Optics Group, stated: ``This contract demonstrates our relationship of trust with France
Telecom which has already chosen Alcatel to build part of its DWDM core network in Europe. It is a major success for Alcatel in
the North American market, which was obtained thanks to our leading technologies in DWDM and intelligent optical
networking, and turnkey offering. This also confirms our worldwide leadership in DWDM systems.''

The backbone network will be in service by year-end 2001.

About Optinex

The Optinex family of carrier-class transmission solutions is designed with distinctive and enduring features that enable operators
to offer a full range of services to business and residential users, including the newest IP-based services with guaranteed IP
Quality of Service (QoS). IP and ATM grooming and forwarding functionality is introduced into Optinex Multiservice Nodes and
Gateways, thus drastically reducing the amount of investments needed to build up a transmission network and to operate it. The
current terrestrial Optinex product range also includes wide-band optical amplifiers and Dense Wavelength Division
Multiplexing systems (DWDM) with high-channel counts and very high-performance applications, able to multiplex up to 160
channels -- upgradable to 240 -- with optical tributaries from 100Mbit/s to 10Gbit/s. Within this range, Optinex Optical network
Systems are capable of reaching up to 1.6Tbit/s. of capacity. All the above mentioned systems are managed by a single, fully
integrated Network management System enabling efficient traffic control and routing throughout all network levels, from local
up to intercontinental links and from submarine to terrestrial ones.

About Alcatel

In November 1999, RHK, a leading telecommunications analyst firm, said that Alcatel holds a 23% share -- the number one
position -- of the world's total transport market, which comprises submarine and terrestrial transmission systems. RHK noted that
Alcatel's market-leading 37% market share in the submarine networks segment helped secure the top position in the total
transport market. In addition, RHK found that Alcatel commands a 37% share of the digital cross-connect systems (DCS)
segment. Cross-connect systems contain the enabling technology for operators to offer high bandwidth services. Alcatel is also
cited as the global leader in terms of DWDM market share for the global market encompassing both terrestrial and submarine
applications.

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. Visit us at www.alcatel.com.

Contact:

Alcatel
Press relations
Sarah Compton, +33 (0)1 40 76 16 16
sarah.compton@alcatel.fr
or
Christophe Lachnitt, +33 (0)1 46 52 94 51
christophe.lachnitt@asn.alcatel.co.uk
or
Burson-Marsteller
Tim Fiala, 212/614-4933
or
Investor relations
Claire Pedini, +33 (0)1 40 76 13 93
claire.pedini@alcatel.fr
or
Charlotte Laurent-Ottomane, +33 (0)1 40 76 13 30
charlotte.laurent.ottomane@alcatel.fr
or
Emmanuel Spite, +33 (0)1 40 76 16 04
emmanuel.spite@alcatel.fr
or
Peter Campbell, 972/519-4347
peter.campbell@usa.alcatel.com

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