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Technology Stocks : Alcatel (ALA) and France

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To: zbyslaw owczarczyk who wrote (2891)1/17/2001 7:26:30 AM
From: zbyslaw owczarczyk  Read Replies (1) of 3891
 
German operator to launch nationwide service using Alcatel's fully integrated DSL platform

Paris, January 17, 2001 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced it
has entered into a turnkey agreement with Callino, a leading German alternative service
provider, to supply digital subscriber line (DSL) technology. The contract is valued at over
20 million Euros. Alcatel will begin delivering its DSL solution in the first quarter of 2001:
ADSL (asymmetric DSL), G.SHDSL (symmetric high bit rate DSL), HDSL (high bit rate DSL)
and VoDSL (voice over DSL) solution.

As part of the contract, Alcatel will install all central office equipment and assume
responsibility for the operation, maintenance and management of the network. Alcatel's
maintenance of the DSL network will allow Callino to avoid expensive staffing overhead
costs and to focus on the launch of its revenue-generating broadband services. Over the
next year, Callino will roll out xDSL services throughout Germany and the first customers
will be connected in time for the CeBIT trade fair in Hannover, scheduled for March 2001.

Alcatel is currently the only vendor able to offer an integrated suite of xDSL services over
a single platform, the award winning Alcatel 7300 ASAM DSL Subscriber Access Platform.
Callino's subscriber base is dominated by small and medium-sized businesses and
integrated G.SHDSL functionality on the 7300 ASAM now allows the operator to provide
these subscribers with a cost-effective alternative for data services.

"The breadth and availability of Alcatel's DSL solution were decisive factors in our choice
of partner," says Matthias Weber, CEO of Callino. "We can now offer our customers
broadband Internet access via the medium of their choice: wireless or wireline." Alcatel
also supplies Callino with broadband wireless solutions including industry-leading Alcatel
LMDS in the 26 GHz band and Alcatel Wireless IP in the 2.6 and 3.5 GHz band.

"Callino is now ready to meet the demand for broadband access in Germany", said Heinz
Friedman, Executive Vice President for Alcatel in Germany. "Its trust in Alcatel not only to
supply but to manage the network will help Callino exceed its customers' expectations. The
agreement is further proof of our continuing market leadership in DSL."

About Callino

Headquartered in Munich, Callino is a full-service provider of telecommunications services.
Founded in the summer of 1999, the company focuses on direct subscriber connection of
business customers via microwave (Wireless Local Loop, Point to Multipoint, (WLL. PMP))
and - especially in metropolitan areas - via xDSL (Digital Subscriber Line). These
technologies make broadband Internet access available in addition to conventional
telephone services (voice, data and fax). Callino is a 100% subsidiary of Formus Inc,
Denver. The US microwave specialist is primarily active in Europe. Formus has licenses in
Poland, Belgium, France, Finland, Hungary, Ireland, Norway and Spain.

About Alcatel DSL
Alcatel is the world's leading supplier of DSL solutions, helping service providers
everywhere deploy an expanded range of revenue producing offerings and applications
such as high speed Internet access, voice over DSL, and video services.
Alcatel's DSL technology is also offered in an advanced range of customer premises
equipment, the Alcatel Speed TouchTM family of DSL modems, routers, and integrated
access devices supporting multi-line voice and data service over a single telephone
access line. For more information on Alcatel's DSL solutions, visit
alcateldsl.com

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. According to the Dell'Oro group, Alcatel enjoys over 50 % market
share in global DSL central office equipment. With 120,000 employees and sales of EURO
23 billion in 1999, Alcatel operates in more than 130 countries.

Contact press@www.alcatel.com
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