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, seealcatel.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