Alcatel and Prime Companies, Inc. to Conduct Field Trials of National LMDS Broadband Wireless Network in March 2000 - Company Business and Marketing

Cambridge Telcom Report, March 13, 2000

Alcatel and Prime Companies Wednesday announced that they will conduct field trials of a Local Multipoint Distribution System (LMDS) high-speed broadband wireless access network for small- and medium-sized businesses beginning in March of this year.

As part of the agreement, Alcatel will supply its EVOLIUM LMDS Solution, a broadband wireless access solution, to LMDS Communications, Inc., a subsidiary of Prime Companies, and will assist with the installation and management of the LMDS (28GHz) network. The first field trials will take place in New Castle, Pennsylvania, with additional trials scheduled for later this year. LMDS Communications has a corridor of LMDS (28GHz) A band licenses in Pennsylvania, New York, and Ohio, and is ranked in the top 10 of LMDS A band licenses holders in the U.S.

"As LMDS secures a foothold in the U.S. market, Alcatel's broadband wireless access solution has proven in 40 extensive field trials and commercial deployments around the world that LMDS is an easy-to-use and affordable solution for the broadband access needs of small to medium enterprises," said Dave Kimzey, vice president and general manager, Wireless Access Products, Alcatel USA. "The modularity and flexibility offered by Alcatel's LMDS solution makes it possible to bring high-speed data communications, including voice, data, Internet and video conferencing, to businesses quickly and cost effectively."

According to Bert Lima, Chief Executive Officer, Prime Companies, "Using Alcatel's LMDS technology, we will be the first in many areas of the United States to offer wireless high-speed data connections to businesses. These field trials will demonstrate how Prime Companies and LMDS Communications can play a leading role in helping companies build traditional and e-commerce businesses by leveraging high-speed wireless access technologies."

Alcatel builds next generation networks, delivering integrated end-to-end voice and data solutions to established and new carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of EURO 23 billion in 1999, Alcatel operates in more than 130 countries. For more information, visit Alcatel on Internet: http:/www.alcatel.com EVOLIUM is the brand name of a whole range of fixed and mobile radio solutions dedicated to ILECs, CLECs and GSM operators and specially designed to adapt to the constantly changing realities of fixed and cellular networks.

Prime Companies, Inc., through its wholly owned subsidiaries, currently provides telecommunications services to both commercial and residential customers throughout the U.S. The services offered include prepaid telecommunications, interconnect, paging, Internet service access and voicemail services. The company is launching LMDS technologies to various markets through its subsidiary, LMDS Communications. Prime Companies is publicly traded on the OTC Bulletin Board by the symbol PRMC.