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To: Steve Fancy who wrote (2477)9/28/2000 7:11:32 AM
From: zbyslaw owczarczyk  Read Replies (1) | Respond to of 3891
 
Alcatel and Tdsoft to Kick-Start Voice Revenue
Opportunities for DSL Service Providers

Partnership Will Expand and Accelerate Deployment of Integrated Voice
and Fast Internet Services in `V5' International Markets

PARIS & HERZLIA, Israel--(BUSINESS WIRE)--Sept 28, 2000-- Alcatel (Paris:CGEP.PA)(NYSE:ALA - news), the global market
and technology leader in DSL (Digital Subscriber Line) solutions, and Tdsoft, a developer of voice over next generation access
solutions (VoNGA), today announced a partnership and a set of solutions to address V5-based voice over DSL services for
Europe, Asia, Latin America and Australia.

The solutions will allow DSL service providers to integrate new, high margin voice services alongside broadband Internet access
on a single pair of copper wires. For many alternative service providers in particular, the voice services will represent entirely new
revenue streams that will contribute strongly to bottom line performance.

The ability to purchase a bundle of services, including multi-line voice and broadband Internet access, is seen as particularly
attractive to small and medium enterprises, and also to parts of the residential market. Voice over DSL service revenues in Europe
and Asia could reach $US 29 billion by 2005, according to ICM Global Intelligence.

``Alternative service providers can easily increase revenues from their customer by 10-fold with the inclusion of voice services in
the bundle,'' said Marc Verhoeyen, product manager for VoDSL at Alcatel. ``For this reason we expect alternative service
providers to lead the charge, but incumbents will respond with new bundled services of their own, as they attempt to protect and
then grow their market share.''

Alcatel's global market leadership in DSL will be a strategic advantage in its quest to accelerate growth for the voice over DSL
market. Dell'Oro Group figures reveal that Alcatel shipped more than four times as many DSL central office lines as its nearest
competitor in the second quarter of 2000. ADSL accounted for 76% of all CO line shipments in the quarter, and Alcatel
registered a 54% share. The Del'Oro figures further reveal that Alcatel has shipped 3.5 million CO DSL lines since records began,
and each one has the potential to support the new voice services.

A second strategic advantage will be the end-to-end nature of the solution. Alcatel and Tdsoft have worked to integrate Tdsoft's
VoNGATE(TM) Voice Access Gateway systems into Alcatel's comprehensive broadband access and switching solutions. The
VoNGATE system fully supports the V5 standard, which specifies an open interface for access network systems. With
concentration and protection features, the V5 standard was approved by the ETSI and ITU organizations and has been adopted
by European, Asian, Australian and Latin America carriers for PSTN, ISDN and leased lines. Alcatel's industry leading DSL Access
Multiplexers are deployed at the central office location, and the Alcatel Speed Touch IAD can be deployed at the customer
premise. This newest member of the Alcatel Speed Touch family of DSL modems provides four analogue voice ports alongside a
four-port Ethernet hub.

``Alcatel is the run-away market and technology leader in DSL, and Voice over DSL offers our existing and new customers an
opportunity to squeeze as many services as possible onto that single twisted pair,'' said Willem Verbiest, vice president with
responsibility for the DSL business within Alcatel. ``Working together with Tdsoft, Alcatel is introducing exceptional revenue
opportunities for incremental investment.''

``We're excited to enter the partnership with a market leader such as Alcatel,'' said Gil Eyal, VP Sales and Marketing, Tdsoft.
``Alcatel's worldwide industry presence and industry leading technology combined with Tdsoft's recognized position in V5
solutions for the international voice markets will enable both companies to accelerate the deployment of VoDSL services by their
customers in this rapidly evolving market.''

About Tdsoft

Tdsoft develops and markets Voice over Next Generation Access (VoNGA) solutions, access concentrators and switch simulators
for the telecommunications industry. Tdsoft open solutions will enable service providers to add voice services over existing next
generation access broadband infrastructure (Cable, DSL and Wireless). Tdsoft V5 products demonstrated interoperability with
more than 50 access equipment vendors and 16 voice switches in 25 countries. Established in 1994, Tdsoft is a privately held
company financially backed by leading US and International venture capital firms. For more information please see
tdsoft.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. With 120,000 employees and sales of EURO 23 billion in
1999, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: alcatel.com

Contact:

Andy Williams
Alcatel CID
Tel: +44 1633 413500
E-mail: andy.williams@alcatel.com
or
Mayrav Nachmanovich
Tdsoft Ltd.
Tel: +972 9 9703822
E-mail: mayrav@tdsoft.com