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Technology Stocks : UNPH _ Uniphase

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To: FranW who wrote (1030)12/22/1998 8:20:00 AM
From: w2j2  Read Replies (1) of 1261
 
Lucent Technologies and Uniphase
Deliver Breakthrough Undersea
Lasers to Tyco Submarine Systems
Ltd.

Contract Worth $150 Million

ALLENTOWN, Pa.--(BUSINESS WIRE)--Dec. 22, 1998--Lucent Technologies'
Microelectronics Group today announced it is delivering new undersea laser modules to Tyco
Submarine Systems Ltd. (TSSL), in a contract valued at more than $150 million to Lucent over a
two-year period. The modules, which contain laser chips made by Uniphase, will support an
increase of up to eight times in the voice and data capacity of new undersea communications
systems.

The modules are used in optical amplifiers, or repeaters, which are installed at many points along a
fiber-optic cable route to boost the strength of digital signals that carry voice and data traffic. Called
pump laser modules, they provide the energy needed to boost the photons that make up the
transmission signal.

These modules provide less noisy optical power than other similar devices, making it possible to
support more information on each fiber channel while packing more channels on the same fiber. They
are the first of their kind to meet the ultra-stringent reliability standards for undersea cable systems.

TSSL, a leading supplier of undersea communications network systems, will be the first to deploy
Lucent's modules. By increasing the capacity of undersea transmission systems, TSSL will make it
possible for communications service providers to satisfy the burgeoning demand for global Internet
connectivity and other telecom and data communications services.

''The skyrocketing demand for capacity caused by the Internet and global telecom network growth
is driving the need for major advances in undersea systems,'' said Neil Garvey, president of TSSL.
''This latest breakthrough allows us to deliver increased capacity to our customers for the undersea
communications systems they will deploy around the world.''

The new pump laser modules were developed by Bell Laboratories, the research and development
unit of Lucent Technologies. An integral part of the module is a semiconductor laser chip made of
aluminum gallium indium arsenide, designed and manufactured for Lucent by the Uniphase Laser
Enterprise (ULE) division of Uniphase Corporation [Nasdaq:UNPH - news]. ULE is recognized as
a world-leader in this kind of technology, also referred to as 980-nanometer (nm) laser technology,
for the color of light that these lasers produce.

Pump lasers operating in the 980-nm range make possible cleaner (or lower-noise) signals than
those operating in the 1480-nm range, which is the typical range of pump lasers in today's undersea
transmission repeaters. This low-noise characteristic permits the 980-nm lasers to support higher
transmission capacities. Pump lasers that operate at 980 nm have been deployed in land-based
optical transmission repeaters, but until now they haven't demonstrated the 29-year lifetime-rating
needed to meet the ultra-stringent reliability demands of undersea systems.

''Lucent's expertise in the development and manufacture of laser modules, and Uniphase's expertise
in 980-nm laser chip technology, enabled us to meet Tyco's high-reliability and certification
requirements,'' said Dan DiLeo, vice president of the optoelectronics components business of
Lucent's Microelectronics Group. ''We're excited to be part of the cutting edge of undersea
transmission technology.''

To ensure TSSL's required performance of the 980-nm pump lasers, Lucent and Uniphase
conducted rigorous certification stress tests. These tests made it possible to identify potential
performance problems of the devices and drive failure rates to nearly zero.

''We worked extremely closely with Lucent in the certification process of the modules to ensure that
the reliability met TSSL's undersea standards,'' said Kevin Kalkhoven, chairman and CEO of
Uniphase. ''We each focused on our own area of expertise and together created a system that is an
important step towards increasing the level of bandwidth available in undersea repeaters today.''

The pump laser modules will be used with Lucent's TrueWave® XL Fiber -- a new high-power
fiber that allows network providers to dramatically improve the speed and performance of their
undersea networks. In October, TSSL signed a $200 million agreement with Lucent to be the first
undersea cable system maker to use TrueWave XL Fiber along with Lucent's WaveStar bandwidth
management system.

The fiber supports dense wavelength division multiplexing (DWDM), which handles multiple laser
signals, or channels, on a single fiber strand. DWDM allows communications systems providers to
maximize the bandwidth capability of fiber-optic cables and enables the delivery of multimedia
services such as simultaneous voice, data and video transmission.

TSSL, a wholly owned subsidiary of Tyco International Ltd. [NYSE:TYC - news], is an
independent supplier of undersea communications network systems and services. TSSL owns and
operates a fleet of eight cable ships for the installation and lifetime maintenance of the undersea
communications networks. The manufacturing capabilities of TSSL are highlighted by cable, repeater
and transmission equipment manufacturing. TSSL has successfully supplied 65 undersea cable
networks connecting over 100 countries, and is presently implementing undersea communication
networks valued in excess of $4 billion. For more information on TSSL, visit its web site at
submarinesystems.com.

Uniphase Corporation is an optoelectronics company that designs, develops, manufactures and
markets fiber optic telecommunications components and modules, laser subsystems and laser-based
semiconductor wafer defect examination and analysis equipment. The company's telecommunication
products include semiconductor lasers, high-speed external modulators, transmitters, fiber Bragg
gratings and optical modules for fiber-optic networks in the telecommunications and cable television
industries. For more information on Uniphase, visit its web site at uniphase.com.

Lucent Technologies designs, builds and delivers a wide range of public and private networks,
communications systems and software, data networking systems, business telephone systems and
microelectronics components. Bell Laboratories is the research and development arm for the
company. For more information on Lucent Technologies, headquartered in Murray Hill, N.J., USA,
visit its web site at lucent.com.

Lucent's Microelectronics Group designs and manufactures integrated circuits and optoelectronic
components for the computer and communications industries. More information about the
Microelectronics Group is available from its web site at lucent.com.
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