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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (9768)	11/27/2001 9:00:49 PM
From: Mark Fowler	Respond to of 57684

Things change fast.

To: Bill Harmond who wrote (9768)	11/27/2001 10:32:29 PM
From: Mark Fowler	Read Replies (3) \| Respond to of 57684

OCEANPORT, N.J., Nov 27, 2001 /PRNewswire via COMTEX/ -- According to a new study released today by RHK, a leading market research firm with headquarters in San Francisco, Tellium (Nasdaq: TELM) will increase its market share of the global optical core switching (OCS) market in 2001 by more than 50 percent from a year ago. According to the study, Ciena will maintain its leadership in the estimated $465 million worldwide optical core switching equipment market, with a market share of 46 percent, dropping from 60 percent a year ago. Tellium is second in market share, and will own 29 percent of the market, an increase of 10 points of market share, or 53 percent growth compared to its 19 percent share a year ago. Tellium was the only company in the study to see double- digit market growth with nearly a ten-fold increase in projected annual revenues. "This study divides the optical core switching market into three different segments -- edge grooming at STS-1 levels, core grooming at STS-48 levels and pure photonic switching," said Dana Cooperson, director of optical transport with RHK. "We see different leaders emerging in each of these segments. Tellium is the leader in the core grooming segment and the only vendor shipping core grooming switches." The study also reports that Tellium will gain significant market share over its competitors, most of which will show little or no market share growth in 2001. Tellium, which went public in May, recently announced its third quarter financial performance, which for the second consecutive quarter, exceeded expectations. The company is the sole provider of optical core switches for DynegyConnect's new network, the largest optically switched mesh restoration network in the world. "We've been able to successfully capitalize on our strategy of focusing exclusively on the core and our first mover advantage," said Harry Carr, Tellium's chairman and chief executive officer. "This market share gain is clear evidence that our strategy is working. When carriers understand the economic benefits of the Tellium solution, they are compelled to act. In today's economic environment, our value proposition of major capital savings and significant operating expense savings is a clear call to action for our carrier customers that want to have a competitive cost position in the industry." About Tellium Tellium delivers high-speed, high-capacity, intelligent core optical solutions, that empower service providers around the world to create, run, control and optimize their networks. First in the world to provide in- service, intelligent optical switches, Tellium's Aurora Optical Switch(TM) family and the StarNet Software Suite(TM) together offer service providers a simple and cost-effective evolutionary path to next-generation public networks. More information is available at www.tellium.com.