Scientific-Atlanta Will Increase Manufacturing Capacity to 1.3 Million Set- Tops a Quarter to Meet Increased Demand for Interactive Digital TV Services - Company Operations

Cambridge Telcom Report, June 5, 2000

Scientific-Atlanta, Inc. (NYSE: SFA) announced Tuesday plans for a major increase in manufacturing capacity enabling a total production capability of 5.2 million of its flagship Explorer set- tops per year beginning in January 2001. The additional capacity at Scientific-Atlanta's Juarez, Mexico manufacturing facility will help the company fulfill the surging demand for Explorer digital interactive set-tops, which are being deployed by cable operators into consumer homes at unprecedented rates of more than 40,000 a week. Recently Scientific-Atlanta announced major set-top commitments from Adelphia Communications and Charter Communications.

Current production is approximately 60,000 units per week with plans to increase capacity to 80,000 units per week in July 2000. The Company believes that rapid expansion is necessary to keep up with accelerating demand for Scientific-Atlanta's Explorer set-tops and is expected to allow Scientific- Atlanta to improve the manufacturing flow in the Juarez facility with a focus on reducing costs, improving quality and reducing cycle times.

"Our broadband customers have indicated that their subscribers are embracing digital interactive television and are requesting Scientific- Atlanta's Explorer set-tops in record numbers," said Greg Taylor, Scientific- Atlanta's vice president of worldwide manufacturing. "This increased demand validates Scientific-Atlanta's visionary strategy to create Internet protocol- based devices that are capable of a variety of exciting interactive TV applications. We are consistently ramping up our manufacturing capabilities to reflect our customers' requirements now and in the future."

Scientific-Atlanta, Inc (http://www.scientificatlanta.com) is a leading supplier of broadband transmission networks, digital interactive subscriber systems for video, data, and voice networks, and worldwide customer service and support.

COPYRIGHT 2000 EDGE Publishing
COPYRIGHT 2000 Gale Group

 

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