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To: Steve Fancy who wrote (3406)5/31/2001 10:49:44 PM
From: zbyslaw owczarczyk  Respond to of 3891
 
Alcatel to Demonstrate Video-over-DSL at Supercomm
2001 with Microsoft and Intertainer

Solution allows service providers to generate additional revenue from
their DSL networks

DALLAS--(BUSINESS WIRE)--May 31, 2001--Alcatel (NYSE: ALA - news), the world
leader in Digital Subscriber Line (DSL) solutions, has teamed with Microsoft and
Intertainer at Supercomm 2001 (June 5-7) to demonstrate to DSL service providers how
they can deliver value-added broadband applications and generate additional revenue
from their DSL networks by providing video-on-demand services over ordinary
telephone lines.

Using the latest in video compression and digital rights management (DRM) technology
from Microsoft and the rich content library available from Intertainer, the demonstration
will show how high quality video can be delivered to DSL subscribers over existing DSL
networks. Unlike current video solutions which require 4-6 Mbps of bandwidth per
channel, the Alcatel / Microsoft implementation is capable of delivering near-DVD quality
video using under 700 Kbps of downstream bandwidth, only a fraction of the bandwidth
available on a common DSL connection. The bandwidth savings are due to the
compression efficiency of the new Windows Media Video 8 codec, which delivers the
best video quality in the smallest file size compared with other codecs.

The data center in the Microsoft booth will showcase an Alcatel Advanced Services
Access Manager (ASAM), the most widely deployed DSLAM in the world, with DSL
lines streaming Intertainer's video content to several TV and PC viewing locations in the
Microsoft and Alcatel booths. This DSL video-on-demand system is part of the coming
wave of value-added broadband applications that present additional revenue potential
for DSL network operators.

Alcatel is located in Booth 717 at the Georgia World Congress Center, Microsoft is in
Booth 1442.

About Alcatel DSL

For more information on Alcatel DSL solutions, visit: alcatel.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 130,000 employees and sales of EURO 31 billion in 2000,
Alcatel operates in more than 130 countries. For more information, see
alcatel.com.

Contact:

Alcatel
Press Relations
Tami Christie, 707/665-8237
tami.christie@usa.alcatel.com
or
Industry Analyst Relations
Julie Buckley, 707/792-7820
Julie.Buckley@usa.alcatel.com
or
Investor Relations
Peter Campbell, 972/519-4347
Peter.campbell@usa.alcatel.com