Alcatel Fiber Optics Announces a Tripling of Optical Fiber Production Capacity

Business Wire, June 19, 2000

Business & Technology Editors

DALLAS--(BUSINESS WIRE)--June 19, 2000

Alcatel (NYSE: ALA) today announced it will accelerate its aggressive production plans, which will triple capacity at its fiber optics production plants within two years.

Alcatel has had a phenomenal year, particularly in the demand for TeraLightTM, the new generation of optical fiber, specially designed for long-distance transmission.

"We have made the strategic decision not only to grow the business to meet today's demand, but to proactively meet our customers' demand in the future," said Jacques Blanc, president of Alcatel fiber optics. "The expansion will also enhance our ability to rapidly introduce new and innovative products to the market."

The fiber market is expected to grow by over 30% this year. Alcatel fiber optics expects the growth to continue at this level for the next few years, as demand increases for a full range of solutions, including fiber for the metropolitan and access markets.

"We realize that our success is not only due to increasing demand," said Hakan Yuce, vice president, Strategic Marketing & Business Development of Alcatel fiber optics. "Our customers are coming to Alcatel and staying with us because our products are recognized and appreciated worldwide as being technologically advanced and highly reliable. Thanks to the research efforts over the past several years, Alcatel has been able to stay ahead of its competitors and provide products that meet telecommunication company expectations."

Alcatel fiber optics currently produces fiber in six plants throughout the world. The new investment, however, will focus mainly on the major production plants in Europe and in the United States (Claremont, N.C.).

In the long-distance segment, Alcatel fiber optics provides one of the leading products on the market. Alcatel fiber optics has been providing its customers cables with TeraLight fibers, its new generation of optical fibers that can handle Dense Wavelength Division Multiplexing (DWDM), since late 1999. TeraLight is unique because it can offer more than 240 user channels in the C, L and S bands; that is, 2.4 Terabits per second per fiber with a 10-Gigabit system. TeraLight's optimized dispersion capability provides Alcatel customers with tomorrow's capabilities today.

With the announcement of this significant increase in production, Alcatel - already recognized as a major player in the fiber optics industry - is confirming its determination and commitment to being one of the world's leading players in this industry, offering a full range of solutions to meet ongoing customer needs.

About Alcatel

Alcatel builds next generation networks, delivering integrated end-to-end voice and data communications 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

In the field of telecommunications and power cables, Alcatel offers products, systems and services that meet the growing requirements of three main markets: infrastructure, industry and construction. The batteries and components businesses also form part of this strategy of a global approach to markets, offering integrated solutions for clients who operate on an increasingly international basis.

For more information, visit Alcatel on Internet: http:/www.alcatel.com