Alcatel Claims ADSL Market Lead

PARIS -- Alcatel (Paris: CGEP.PA, NYSE: ALA) Microelectronics Division today announced it shipped 16.3 million DynaMiTe ADSL chipsets in 2000, an increase of more than six times over the previous year. In 1999, Alcatel shipped 2.64 million ADSL DynaMiTe chipsets, winning a substantial percentage of the ADSL chipset market*. The company thus established itself as the market leader in both ADSL systems (Central Office and Customer Premises Equipment) and in ADSL silicon. Due to the exponential growth of ADSL deployment in 2000, Alcatel shipped almost twice its forecasted number of DynaMiTe chipsets, shattering company forecasts for the year. The 2001 forecast again shows a significant increase in the number of anticipated shipments as the Alcatel multi-mode ADSL approach continues to attract customers who understand the need for both full-rate and G.lite functionality.

"With increased deployment in new markets, we don't see the 2001 numbers decreasing," said Leon Cloetens, Vice President of the Wireline Product Division for Alcatel's Microelectronics Activities. "We intend to hold our leadership role in the ADSL chip marketplace and show that our market share is not a one-time event. We pride ourselves on the fact that we can offer our customers high-speed access solutions that respond to genuine market needs. Our commitment to developing interoperable products is a major contributor to our success."

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