ADC Ventures Makes New Investment in Optical Technologies

Business Wire, July 17, 2000

Business Editors & High Tech Writers

MINNEAPOLIS--(BUSINESS WIRE)--July 17, 2000

ADC Ventures, the investment arm of ADC (Nasdaq: ADCT; www.adc.com), announced today it has invested in Northstar Photonics, a start up company focused on the development of next generation laser-based optical devices. ADC's investment was part of Northstar's recently closed round of financing totaling $8.5 million, which also included investments by CIT Venture Capital and Newport Corporation.

Northstar's unique solutions are designed to provide greater wavelength stability, higher output power and reduced environmental control complexity compared to standard semi-conductor laser devices common today. The devices are designed to support fiber optic telecommunications networks by increasing speed and system bandwidth.

"This infusion of capital will further accelerate our product and process development and the market introduction of Northstar's proprietary planar waveguide laser technology," said Mark Bendett, president and CEO of Northstar Photonics, Inc.

"Northstar fits nicely into ADC Venture's objectives of investing in companies that have both high growth potential and synergies with ADC's focus on next generation optical network solutions," said Robert E. Switz, general manager of ADC Ventures and chief financial officer of ADC. "We believe that Northstar's solutions hold tremendous promise for the photonics market, and we expect they will become a key component in the successful deployment of all-optical networks."

ADC Ventures was established in March 2000 as the investment arm of ADC. ADC Ventures is a private fund focused on investing in emerging and start-up companies worldwide who are engaged in developing high-performance, next-generation broadband communications technologies. The fund is particularly focused on companies developing next-generation optical, Internet Protocol (IP), and software technologies that benefit service providers deploying broadband, multiservice networks. Other ADC Ventures optics investments include YAFO Networks and Optical Switch Corporation.

More information on ADC Ventures can be obtained by calling 952.946.3333 for Gokul Hemmady, managing director of ADC Ventures and vice president and treasurer of ADC.

About ADC

ADC is The Broadband Company(TM). ADC's network equipment, software and integration services make broadband communications a reality worldwide by enabling communications service providers to deliver high-speed Internet, data, video and voice services to homes and businesses. ADC (Nasdaq: ADCT) has annual sales of over $2.3 billion and employs more than 16,900 people worldwide. ADC's stock is included in the Standard & Poor's 500 Index and the Nasdaq-100 Index. Learn more about ADC Telecommunications, Inc. at www.adc.com.