Storm Telecommunications Limited and Sycamore Networks Broaden Agreement as International Optical Mesh Network Expands

Business Wire, Feb 1, 2001

Business/Technology Editors

CHELMSFORD, Mass. and LONDON--(BUSINESS WIRE)--Feb. 1, 2001

Intelligent optical switching and metro core transport technology

facilitate backbone expansion

Sycamore Networks (NASDAQ: SCMR), a leader in intelligent optical networking, and Storm Telecommunications Limited (Storm), the first Optical-switched Service Provider (OSP), today announced that the two companies have extended their strategic multi-year agreement. Under the agreement now worth up to US $100 million, Sycamore will supply SN 16000 Intelligent Optical Switches and SN 8000 Metro Core (MC) transport platforms to support the second phase of Storm's international intelligent optical network build out.

This expansion, which includes an ability to purchase an additional $60 million worth of Sycamore equipment, follows the initial agreement of $40 million announced in March 2000. Storm's deployment of the SN 16000 commenced in Q4 2000 and deployment of the SN 8000 MC began in January 2001. In addition to providing products and services, Sycamore will also provide lease financing to Storm for the purchase of Sycamore's equipment.

Storm first began deploying Sycamore's SN 8000 Intelligent Transport Platform in its network last spring to create the world's first optical mesh network, a groundbreaking new infrastructure designed to deliver bandwidth to customers when and where they need it. The deployment of the SN 8000 MC will extend Storm's portfolio of flexible, scaleable bandwidth services, StormWave(TM) into the metro arena providing its customers with flexible services both internationally and locally.

Storm is deploying the SN 16000 as part of its international intelligent optical backbone network, which is now built in the UK, France, Germany, the Netherlands, Denmark, Sweden, Norway and over the coming months will be operational in the USA, Belgium, Switzerland, Italy and Austria.

"Our optically switched network is changing the economics of the next-generation IP network by making it possible for our service provider customers to respond to market dynamics in a matter of hours," said Steve Sanderson, CEO of Storm. "Sycamore's solutions enable an efficient mesh-based network topology, giving the Storm network the advantages of greater flexibility and resilience, creating new revenue possibilities that we would not have been able to offer with traditional switches."

Storm's StormWave(TM) services reduce provisioning time from weeks or months to hours; enable customers to increase, decrease and switch intelligent lightpaths in response to changing demand for IP data flows; and support event-driven bandwidth requirements of next-generation carriers, ASPs, ISPs and high-growth e-business companies.

"Storm has clearly taken an early lead in developing a next generation optical network that combines both the bandwidth potential and service creation capabilities made available by the Intelligent Optical Network," said Daniel E. Smith, president and CEO of Sycamore Networks. "We're pleased to continue working with Storm as they continue to scale their network across Europe and into North America."

Sycamore Networks' product portfolio spans from the edge to the core of the intelligent optical network and includes transport, switching and network management products that can be used to build flexible, scalable network infrastructures. Based on a sophisticated software-centric architecture, Sycamore's products combine carrier-class hard optic technologies with robust soft optics to create intelligent optical networking products that support rapid provisioning of high-speed bandwidth services.

About Storm Telecommunications

Storm Telecommunications Limited, wholly-owned and group operating company of Storm Investments Limited, the first OSP (Optical-switched Service Provider), is a substantial company with operations in 8 countries. Storm's optical mesh network is now built in the UK, France, Germany, Norway, Sweden, Denmark and The Netherlands, reaching the USA, Italy, Austria and Switzerland in the coming months. In February 2000, Storm's management completed an MBO backed by investment affiliates of Soros Private Equity Partners, and further backing by investment affiliates of Merrill Lynch & Co came in May 2000.

Storm's new intelligent optical network is in prime position to meet the e-business challenges of the new Millennium. For more information, please visit Storm on the web at http:\\www.stormtel.com.

About Sycamore

Sycamore Networks develops and markets intelligent optical networking products that transport voice and data traffic over wavelengths of light. The Company combines significant experience in data networking with expertise in optics to develop intelligent optical networking solutions for network service providers. Sycamore's products are based on a common software foundation, enabling concentration on the delivery of services and end-to-end optical networking. Sycamore's products and product plans include optical transport, access and switching systems and end-to-end optical network management solutions. Contact Sycamore Networks at www.sycamorenet.com.