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Technology Stocks : Alcatel (ALA) and France

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To: zbyslaw owczarczyk who wrote (3732)1/24/2002 7:21:57 PM
From: zbyslaw owczarczyk  Read Replies (1) of 3891
 
Alcatel Enhances Its Optical Transmission Product Portfolio with New
Capabilities

Cutting edge matrix chip adds the flexibility and efficiency to surpass current bandwidth limits

Paris, January 18, 2002 - Alcatel (Paris: CGEP.PA and NYSE: ALA), world leader in intelligent
optical networking, today announced it has added new capabilities to its leading-edge optical
systems portfolio. A brand-new digital matrix-chip will enhance the features of Alcatel's backbone
and metro optical systems - whether they are based on Time Division Multiplexing (TDM) or Dense
Wavelength Division Multiplexing (DWDM) technologies - as well as provide increased efficiency
and flexibility.

This matrix-chip further advances Alcatel systems' cross connect capabilities by independently
"crossing" and "connecting" different traffic flows from any of the systems' input ports to any of
their output ports. Its adoption extends the existing limitation of bandwidth in the optical domain
where cross connects with relatively low-capacity electrical matrixes have been employed until
now. Alcatel's new generation transport systems will fill the gap between current standard
solutions (based on 155Mbit/s switching) and the all-optical high-capacity solutions of tomorrow.

Thanks to its 33 input and 33 output of totally independent ports and its capability of supporting up to
12.5 Gbit/s per port (without breaking them into 155Mbit/s wavelengths), the chip provides total
capacity of more than 410Gbit/s. Different devices can be combined to build larger matrixes for a
variety of optical networking systems with throughput in the multiple Terabit/s range. Additionally, its
very compact size - 13x13 mm2 - will enable Alcatel's solutions to impart significant capital and
operational costs savings by reducing equipment footprint and power consumption.

Alcatel's systems will also leverage the chip's on board features for control, testing and supervision
to give operators superior network quality and reliability. Furthermore, increased protection and
restoration mechanisms will help carriers' networks to efficiently accommodate proper traffic
transmission flow. These capabilities will provide a carrier-grade level of security against failures
and will further lower the time needed to restore a service or a downed network.

"As increased data traffic in the network has created demand for DWDM and optical cross connect
equipment, demand for sub-systems has also grown significantly, " stated Bernard Le Mouël, Chief
Technology Officer of Alcatel's Optics Group. "Alcatel's transmission systems continuously evolve
to carry bit-information faster, while maximizing optical networks' cost efficiency and the quality of
the services offered."

About cross-connect
Cross connecting is an essential feature of today's telecommunication platforms, enabling operators
to monitor their networks and meet stringent Quality of Service (QoS) targets. Cross-connects
manages the interconnection of transmission links, automatically allocating the traffic from one link to
the other. Additionally, they ensure that transmission links are used to their maximum potential by
matching traffic demands with network resources. Their configuration is based on several
input/output ports. As the name itself says, cross-connects have to "connect" input and output
signals in both the space and wavelength dimensions: this is the simplest cross connecting function
needed in every network.

About Alcatel
Alcatel is the only vendor to master all optical network elements, from optical components, optical
fibers, DWDM systems and microwave radio links to core routers and network intelligence, and from
terrestrial to submarine solutions. Alcatel is also the only company to provide both terrestrial and
marine services for the installation and maintenance of global, seamless optical networks.
According to RHK's 2000 study, Alcatel holds the number two position in global optical transport
market with 20% market share, distancing itself from other competitors. RHK also reported that
Alcatel reaffirms its number one position in submarine networks with 41% worldwide market share.
Moreover, Alcatel claims to be the world leader in total terrestrial and submarine DWDM systems, in
digital cross-connects, which contain the enabling technology for operators to offer high bandwidth
services, in SDH networks and in microwave radio links. Alcatel's optics business comprises
terrestrial and submarine transmission systems, fiber optics, optical components and microwave
radio links. Alcatel has launched a new class of Alcatel stock, which is intended to track the
performance of Alcatel Optronics, the Company's optical component business.
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
sales of EURO 27 billion in 2000 and 110,000 employees, Alcatel operates in more than 130
countries.

Contact press@www.alcatel.com
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