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Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (1973)	6/8/2000 7:13:00 PM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 3891

TELSTRA SELECTS ALCATEL TO SUPPLY THE FIRST 32-CHANNEL DWDM NETWORK IN AUSTRALIA The system will allow to handle one million simultaneous multimedia connections Steve, Telestra is 11 billion revenue company Paris, June 8, 2000 - Alcatel, the world leader in optical networking, has been chosen by Telstra, the Australia's premier communications carrier, to build Australia's first 32-channel DWDM (Dense Wavelength Division Multiplexing) network which will link Melbourne and Sydney. This technology will be used across Telstra's inter-capital fiber optic cable. Alcatel will supply, install and commission its Optinex 1686 WM, a state-of-the-art 32-channel DWDM system specially designed for regional and metropolitan applications. The technology will transmit data using 32 different "colors of light" at once, allowing for up to 80 Gbps of traffic to be carried over the existing fiber system. The capacity being produced will be able to handle one million simultaneous multimedia (voice and Internet) connections. The expansion in carrier grade Terabit networks allows customers to keep pace with the rapid innovation of telecommunications. DWDM is a key technology to telecommunications companies as demand for data services continues its exponential growth. "The project will greatly enhance voice and data communications", said Ms. Meredith Rogers, Telstra's General Manager for Core Network Development and Global Connect. "The Melbourne-Sydney project is important for Telstra because it further enhances the capability and robustness of our interstate transmission network, which is vital to the provision of voice and data communications along the eastern seaboard. Alcatel's solution will give us the capacity to steadily augment the system as traffic grows in the coming years". "Alcatel have closely worked with Telstra to define the optimum architecture for the Melbourne-Sydney DWDM project", stated Mr. Ron Spithill, President of Alcatel Asia Pacific. "The full turnkey solution includes Alcatel's management system to allow Telstra to manage the entire network from their Global Operations Center in Melbourne. The overall system will ensure that Telstra's customers receive the highest quality of service." About Telstra Corporation Limited Telstra is Australia's premier communications carrier and is a world-class, fully integrated, full service provider across wireline, ADSL, HFC, satellite and digital wireless networks and platforms. It is Australia's leading ISP, has the most highly accessed family of internet portals and sites and provides entertainment and multimedia content over its broadband network and through its Pay-TV joint venture, Foxtel. Telstra has indicated its interest to expand its activities in Australia and regionally in the digital media area. Telstra has also focused its B2B and B2C activities in major industry growth areas, e.g. entertainment, health, financial services, insurance, education and travel and has a significant stake in Australia's largest e-commerce enterprise. A top tier global carrier with fiscal 1998/99 revenue of A$18.2 billion (approx US$11.6 billion), Telstra placed 62nd in Business Week's 1999 Global 1000 ranking of the world's most valuable companies by market value. The Wall Street Journal ranked Telstra in the top 50 of 'The World's 100 largest Public Companies' in 1999. Telstra was credited with underpinning Australia's first place ranking in a survey of 100 MNCs in 22 countries by the National University of Singapore's Centre for Telemedia Strategies (http://www.comp.nus.edu.sg/telemedia) on such criteria as regulatory environment, price, choice and service. For more information, visit Telstra on the Internet: telstra.com About Alcatel In November 1999, RHK, a leading telecommunications analyst firm, said that Alcatel holds a 21% 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. Contact press@www.alcatel.com

To: Steve Fancy who wrote (1973)	6/9/2000 6:19:00 PM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 3891

Salomon Smith Barney on Alcatel, 06/09/2000 Positive Feedback from Supercommm the worlds largest telecom equipment exhibition based on comments form ALA C.Reinaudo, president of ALA Optics. ALA won two major submarine contracts with Level 3 Comm and Flag Telecom. Alcatel dominate submarine market. Expect to see more big orders this year. Accidentally Nortel who sold submarine business are now interested in getting back into this business. two major DWDM contracts each for more then 100 million US with Global Photon System in California- connecting major cities in CA. ALA will also maintain and operate network. The second with VSP Comm. ( in US) for high speed DWDM voice and date in eastern part of US . This contract is worth several million $ US This contracts confirm ALA worldwide No1 position in transport, in optical networking and submarine system Reinaudo admitted that ALA missed the boat on 10 Gbit systems , but have made quantum leap to 40 Gbit and have several key customers evaluation this technology.* Of course absolute No1 position in both xDSL and LMDS , after addition of Newbridge. ( now call Newbridge-Alcatel and they had they won boot on Supercom, which was dominated by ALA. It was difficult to get in . This is from my friend who attended Supercom) * IN terns of future technology they were showing big all optical cross connect using Agilent switching technology were other vendors were showing cross connects using micro mirror technology. Conclusion: Alcatel looks increasingly cheap compared to its US peers. ALA is leading in key technologies , including optical , have more open management . Our (Salomaon SB) target price is under review my note: in early May SSB had conservative price target of 58 US...... ------------------------------ Below is translated( from French) comments from Lehman Brothers: Friday June 9 2000, 16h37 ALCATEL continues to go up thanks to a rain of contracts Alcatel (Paris: 13000.PA - topicality ) does not finish any any more going up. The title allocates 2,88 more % to 66 euros today towards 16h30. This carries its progression to 67 % since its low annual of April 5. It is true that on the level of its results, the group does not disappoint. Last 4 May, it published a progression of its turnover of 42 % for first quarter 2000 (to 6,124 billion euros) and a net income of 258 million euros, against a loss of 18 million euros one year earlier. But beyond these figures, it is the good behaviour of the sector of the infrastructures networks which carries the title. Thanks to a technology and to a know-how of foreground, the group does not finish any obtaining contracts. Not less than 5 were announced these last three days at the time of the SuperComm show, in particular in Asia and in the United States. Let us quote the two contracts for the supply of centers of contacts based on the Internet for the Information center of the Chinese Internet network (CNNIC) as well as the " Bank of Communications ". But also the signed contract, with the nose and the beard of its American competitors, with Total Photon Systems, Inc, of a value of more than 100 million dollars, for a terrestrial and underwater optical network completely integrated DWDM, on the West coast of the United States. On this technology known as " wet and dry ", Alcatel seems untouchable besides. More generally, the group has a line of goods one cannot more complete. ATM with the ADSL (which is exploding) while passing by the underwater infrastructures. Without forgetting the new technology of optical, faster and less expensive commutation (in the long term). The stake is here enormous puic the " optical whole " should gradually become the standard. As underlines it Eric Burkel, analyst at Handelsbanken Markets, Alcatel is one of only in the world, if it is not only, with being able to provide today a network very optical key-in-hand. The analyst of Lehman Brothers underlines on this subject that the group defined an action plan aiming at creating a single tool " Optinex CoreNode " gathering of routers IP/ATM, the optical gates and interfaces DWDM. He says himself in addition very trustful on the integration of Newbridge, which is essential insofar as the group aims at world signal 3 in the sector of the Networking Carrier, a market evaluated by Alcatel to 10 billion dollars. Eric Burkel specifies that, if this market has one limited lifespan (the " optical whole " threatening), its potential remains very strong A medium term, i.e. for at least 5 years more. If the future takes shape under best the auspices, remains to be known until where can still go the title. The analyst of Lehman Brothers little expensive considers it in term of PER (35 times 2001), showing a d‚c“te of 20-25 % compared to his principal competitors, Nortel, Lucent and Ericsson. Eric Burkel joins with this analysis and estimates that with the top of 10 %, the d‚c“te is not justified. The objectives of courses fixed by the analysts thus leave logically a margin of progression to the title. Lehman Brothers counts on 72 euros, Handelsbanken Markets on 74 euros, and SG Securities on 76 euros.(A.T.) Consensus Aof Recommendations To The 04.05.00 To buy 28 To preserve 3 To sell 1