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To: zbyslaw owczarczyk who wrote (3540)7/12/2001 7:04:00 AM
From: zbyslaw owczarczyk  Respond to of 3891
 
Dominion Telecom Selects Alcatel's end-to-end Optical Solutions for
its North American Network

Integrated DWDM and SONET transport systems, TeraLight(TM) fiber cables and
connectivity elements unite for optimized performance and lower cost

PARIS, July 10, 2001 - Alcatel (Paris: CGEP.PA and NYSE: ALA), world leader in
intelligent optical networking, has been selected by Dominion Telecom, a subsidiary of
Dominion (NYSE: D), as the primary supplier for a major North American optical network.
Alcatel will provide long-haul optical solutions, including DWDM (dense wavelength division
multiplexing) systems, SONET multi-service systems, optical fiber cables and connectivity
elements. Alcatel's unique integrated, end-to-end optical networking capability will allow
Dominion to deploy a cost-effective and flexible services platform to meet its growing
customer needs. Dominion Telecom's new network, connecting Chicago, Cleveland,
Detroit, Toledo, Pittsburgh, Harrisburg and Washington, D.C., will be complete in 2001 (see
map).

Dominion will be deploying Alcatel's TeraLight cabled fibers, which are the only optical
fibers on the market proven to operate at 40 gigabits per second (Gbit/s). This advanced
non-zero dispersion fiber (NZDSF) is optimized for use in dense wavelength division
multiplexing architectures, and will outfit Dominion's state-of-the-art network with the
bandwidth necessary to grow with its customers. In addition to TeraLight cable, Dominion
also plans to utilize Alcatel's passive interconnection solutions including water-tight splice
closures and the Optical Modular Distribution Frame to connect the cable network to the
SONET and DWDM equipment.

Along with these cable and interconnection solutions, Dominion will also deploy the Alcatel
1603 SMX SONET multi-service transport system and the advanced long-haul capabilities
of the Alcatel 1640 Optical Add-Drop Multiplexer (OADM). The 1603 SMX offers Dominion a
low cost, high-capacity, metro transport solution, while the 1640 OADM provides Dominion
with cost-effective, long-haul DWDM capabilities in the core of its network.

"Communications carriers are facing challenges they never dreamed of in the past. The
continued appetite for more and more bandwidth, and the need to support the explosion of
next generation services are the issues facing carriers today," said Gregg Kamper,
executive vice president and general manager of Dominion Telecom. "Alcatel's optical
solutions will enable our network to handle today's data traffic more efficiently and
reliably, while offering a clear migration path to support future expansion."

"Dominion Telecom's deployment is a paramount example of Alcatel's comprehensive
optical network solution," stated Christian Reinaudo, President of Alcatel's Optics Group.
"When coupled with TeraLight, our DWDM solutions provide operators with an enhanced
ability to maximize the potential of their networks at lower costs. By selecting Alcatel's
solution, Dominion will enjoy reliable, high capacity networks that can seamlessly evolve
with the changing demands of its customers."

Alcatel's relationship with Dominion Telecom dates back to the origins of Dominion's
involvement in optical network infrastructure. In June of 1999, when Dominion Telecom
was known as VPS Communications, Inc., a subsidiary of Virginia Power, an agreement
was signed for the first deliveries of Alcatel DWDM equipment. Since that time, Alcatel has
been a key supplier for Dominion's network builds.

About TeraLight(TM)
Laboratory tests of TeraLight demonstrate world record transmission capabilities of 10.2
Terabits per second. TeraLight is capable of transmitting greater than 320 channels at 40
Gbit/s, allowing one fiber to simultaneously transport of more than 160 million phone calls
or one million high bit-rate internet connections. The only long-haul optical cable compatible
with the future S amplifier band, TeraLight demonstrates Alcatel's intent to equip its
customers for the networks of tomorrow.

About Alcatel
Alcatel is the only vendor to master all optical network elements, from optical components,
optical fibers and dense wavelength division multiplexing (DWDM) systems to core routers
and network intelligence, and from terrestrial to submarine solutions. Alcatel is also the
only company to provide both terrestrial and marine services for the installation and
maintenance of global, seamless optical networks.
According to a 2000 study done by telecom industry analyst RHK, Alcatel holds the
number two position in the global optical transport market with 20% market share,
distancing itself from all other competitors. RHK also reported that Alcatel reaffirms its
number one position in submarine networks with 41% worldwide market share. Moreover,
Alcatel claims to be the world leader in total terrestrial and submarine DWDM systems, in
digital cross-connects, which contain the enabling technology for operators to offer high
bandwidth services, and in synchronous digital hierarchy (SDH) networks. Alcatel's optics
business comprises terrestrial and submarine transmission systems, fiber optics and
optical components. Alcatel has launched a new class of Alcatel stock which is intended
to track the performance of Alcatel Optronics, the Company's optical component business.

About Dominion Telecom
Dominion Telecom is a facilities-based, inter-exchange and emerging local carrier that
provides broadband solutions (private line, wavelengths, dark fiber, Internet and
collocation) to wholesale customers throughout the eastern United States. The company is
expanding its fiber-optic network from its current 35,000 fiber miles (3,600 route miles) to
more than 800,000 fiber miles (9,000 route miles). For more information, visit Dominion
Telecom's web site at www.dominiontel.com.

Contact press@www.alcatel.com