Grande Communications Selects Alcatel to Supply Fiber Optic Cable for Its Metro Broadband Optical Network

Business Wire, Feb 22, 2001

Business/Technology Editors

PARIS--(BUSINESS WIRE)--Feb. 22, 2001

Alcatel to deliver 100,000 kilometers of optical fiber allowing

bandwidth capabilities in excess of 10 Mb/s per user

Texas-based broadband company Grande Communications announced today that it has signed a three-year deal with Alcatel (Paris:CGEP.PA) (NYSE:ALA), world leader in intelligent optical networking, for the supply of fiber optic cable and interconnection hardware for Grande Communications' broadband network.

Grande is building a fiber broadband network that will offer Central Texas and Houston residents access to high-speed Internet, local and long distance telephone and cable television entertainment services.

Over the next three years, Alcatel will allocate 100,000 kilometers of fiber and related interconnection hardware for the construction of Grande Communications' network. Grande Communications also has the option to double the amount of fiber they receive from Alcatel in the second or third year if an accelerated construction timeline creates the demand.

Grande is committed to providing the most dependable technology and stellar service for its customers. Using FTTC (Fiber To The Curb) technology, Grande Communications' network will reach closer to the home and offer bandwidth capabilities in excess of 10 Mb/s per user, more than any other network in the region. Grande Communications' network will benefit from the industry leading optical performance and long term reliability of Alcatel's fiber with exclusive ColorLock(TM) fiber coating technology.

"Alcatel has demonstrated the reliability of its product and services in the international market," said William E. Morrow, Grande Communications' vice chairman and CEO. "We're glad to partner with an established, recognized company that will provide us with the tools necessary to be the leading bundled service provider in Central Texas and Houston."

"Alcatel fully supports Grande Communications' advanced broadband network strategy," said John Steen, Chief Operating Officer for Alcatel's optical fiber activities. "Alcatel will support Grande's service deployment by providing world class optical cables and interconnection solutions."

Construction of Grande Communications' network has already begun in Austin, San Marcos and San Antonio and is set to begin in Houston in 2001. Grande Communications will begin offering bundled services to Austin and San Antonio and San Marcos residents in Q1 2001.

About Grande Communications

Grande Communications, which sets a Texas initial equity fund-raising record of 233 million US dollars in February 2000, is building a ground-up deep fiber broadband network to homes and businesses. The employee-owned company will deliver high-speed Internet access services, local and long distance phone and cable television entertainment services over its own advanced broadband network to communities in Texas. Grande Communications' service area will include the Houston metro area, the Austin metro area, San Marcos, New Braunfels and San Antonio. (www.grandecom.com)

Grande Communications' wholesale service division serves the integrated communications needs of other service providers and carriers by providing the underlying network products, services and professional support staff for carriers, ISPs, CLECs, VoIP providers, ESPs and ASPs through Grande's ATM, voice and data switching platforms and SONET/fiber networks.

About Alcatel

Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With 130,000 employees and sales of EURO 31 billion in 2000, Alcatel operates in more than 130 countries.

Alcatel is the only vendor to master all optical network elements, from optical components, optical fibers and DWDM systems to core routers and network intelligence, and from terrestrial to submarine solutions. Alcatel is also the only company to provide both terrestrial and marine services for the installation and maintenance of global, seamless optical networks.

According to RHK's 2000 study, Alcatel holds the number two position in global optical transport market with 20% market share, distancing itself from all other competitors. RHK also reported that Alcatel reaffirms its number one position in submarine networks with 41% worldwide market share. Moreover, Alcatel claims to be the world leader in total terrestrial and submarine DWDM systems, in digital cross-connects, which contain the enabling technology for operators to offer high bandwidth services, and in SDH networks. Alcatel's optics business comprises terrestrial and submarine transmission systems, fiber optics and optical components. Alcatel has launched a new class of Alcatel stock which is intended to track the performance of Alcatel Optronics, the Company's optical component business. For more information, please visit Alcatel's Web site at www.alcatel.com