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To: zbyslaw owczarczyk who wrote (2819)12/12/2000 5:53:45 PM
From: zbyslaw owczarczyk  Read Replies (2) | Respond to of 3891
 
CoolCast and Alcatel Join Forces to Deliver Broadcast
Video Over Telephone Lines

Enables Delivery of Interactive, TV-Quality Video and CD-Quality Audio via DSL

IRVING, Texas and PLANO, Texas--(BUSINESS WIRE)--December 12, 2000-- Alcatel (NYSE: ALA - news), the world leader in
Digital Subscriber Line (DSL) solutions, and CoolCast(TM), an Internet broadcaster, signed an agreement today that bundles
CoolCast technology with Alcatel's award-winning DSL access platform, the 7300 ASAM.

A first for the telecommunications industry, this innovative solution enables DSL service providers to deliver broadcast-quality
video, CD-quality audio, and Internet connectivity to the desktop.

CoolCast provides DSL subscribers access to syndicated broadcast content such as Bloomberg, The Home Shopping Network and
The Weather Channel as well as independent content through a web portal. DSL subscribers may also choose from a large selection
of CD-quality digital music streamed to their PC. CoolCast enables users to watch broadcast video or listen to streaming audio
while multi-tasking with other Web-based or local applications.

``At Alcatel, we recognize that television and the Internet are on a collision course that will ultimately give rise to interactive
viewing,'' said Kevin Sheehan, Vice President of Marketing for Alcatel's DSL business. ``Our partnership with CoolCast
demonstrates Alcatel's commitment to delivering forward-thinking technologies that make revolutionary services like interactive
media a reality.''

``The combination of Alcatel's outstanding DSL platform and CoolCast's innovative technology offers a scalable, cost-effective
alternative for the delivery of streaming audio and video,'' said Senior Analyst Ron Westfall of the competitive intelligence firm
Current Analysis. ``This should spur tremendous competition with cable and satellite television providers in the near future.''

``Our alliance with Alcatel quickly and decisively accelerates our ability to establish a national footprint for patented CoolCast
technology and its exciting broadcasting service,'' commented Larry Hinderks, Vice President of Distribution for CoolCast. ``As the
undisputed leader in providing DSL equipment to DSL service providers, Alcatel represents an important strategic partner, capable
of highlighting the powerful CoolCast technology through its extensive customer base. We've now demonstrated that the
CoolCast service is fully compatible and integrates seamlessly with Alcatel's DSL equipment.''

Combined with Alcatel DSL access equipment, the patented CoolCast broadcast architecture offers DSL service providers a
powerful solution for multi-media delivery that bypasses the Internet. CoolCast broadcasts media via a celestial satellite network
that beams data to a receiver located close to a telecommunications provider's central office (CO). This data is then aggregated in
the Alcatel 7300 ASAM and rapidly streamed into the home or office on the DSL line. By employing this satellite-coupled DSL
technology, service providers can avoid the unpredictable performance of the Internet. This innovative technology offers service
providers unique branding and incremental revenue generation potential via linkages between streaming media and Internet access
services, ushering in the era of interactive video.

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
solutions are available on a variety of service platforms, including the Alcatel 7300 and 7350 ASAM; the Litespan NGDLC; and
environmentally hardened DSLAM packages optimized for remote terminal deployment, the Alcatel Remote Access Multiplexer
(RAM) and mini-RAM. This complete set of deployment options gives service providers the flexibility to bring DSL service to all
potential subscribers in their service areas, regardless of their network topology. A unified element management solution, Access
Management System (AMS), manages voice and data services for the Litespan and the ASAM product family. The Alcatel 5620
Network Manager, an integrated scalable network management solution, seamlessly manages these products at the network and
service layers. Alcatel's DSL technology is also offered in an advanced range of customer premises equipment, the Alcatel Speed
Touch? 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 CoolCast

CoolCast (www.coolcast.com), a wholly-owned division of StarGuide Digital Networks, is an Internet broadcaster that delivers
join-in-progress streaming media combined with regular Web content to PC users. CoolCast's scalable architecture benefits service
providers and end users with its ability to stream audio and video content simultaneously to millions of broadband PC users. The
CoolCast portfolio of patented intellectual property is currently available to thousands of broadband Internet users nationwide
through partnerships with DSL service providers.

DG Systems (Nasdaq: DGIT - news) recently agreed to merge with StarGuide Digital Networks, a leading provider of long form
audio and digital network distribution services to the broadcast industry, in a tax-free stock-for-stock transaction. StarGuide
employs a patented, cost effective, reliable, high-speed electronic store-and-forward media delivery service and has users of its IP
multicast technology throughout the world. DG Systems, the largest electronic distributor of spot audio in the country, operates a
proprietary, North American digital network for distributing audio and video content that links thousands of advertisers and
hundreds of advertising agencies with over 7,500 radio and nearly 800 television station across the United States and Canada. The
Company can be reached at 415-276-6600 or at www.dgsystems.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: usa.alcatel.com (US site)
alcatel.com (Corporate site)

-0- Disclaimer: Companies mentioned herein, including Bloomberg, The Home Shopping Network and The Weather Channel are
independently owned and operated companies and are not directly affiliated with Alcatel or CoolCast. Each company maintains
their own trademark.

Contact:

Alcatel

Press Relations
Lisa Merchant
212-614-4220
lisa_merchant@nyc.bm.com

Industry Analyst Relations
Julie Buckley
707-792-7820
Julie.Buckley@usa.alcatel.com

Investor Relations
Peter Campbell
972-519-4347
Peter.campbell@usa.alcatel.com
or
CoolCast

CoolCast
Larry Hinderks
972-402-4800
lhinderks@coolcast.com

Jaffoni & Collins Incorporated
Joseph Jaffoni, Jennifer Colbert
212-835-8500
cool@jcir.com