For Immediate Release

Contact:

Kirsten Skedd, Marketing Manager
Email: kskedd@instat.com; Phone: (480) 609-4534

Doug McEuen, Industry Analyst - Voice & Data Service
Email: dmceuen@instat.com; Phone: (480) 609-4555

DWDM Presents Bright Future for Networking

SCOTTSDALE, Ariz., June 27, 2000 - The days when a business, be it big or
small, will require a phone network for voice applications alone are
fleeting, according to Cahners In-Stat Group. Given this, the high-tech
market research firm sees optical networks as the solution for the New World
business strategy. Dense Wave Division Multiplexing (DWDM) systems are the
required, capacity-enabling applications for these optical networks, and as
the Internet Service Provider (ISP)-driven, e-commerce economy continues to
expand, DWDM market revenue is projected to hit $21.5 billion in 2004.

In 1999, the DWDM systems market revenue was $4 billion, all of which was
attributed to long haul applications. However, according to Doug McEuen,
Industry Analyst for In-Stat's Voice and Data Service, "As the market
continues to grow, the emergence of metro DWDM systems will begin to support
the overall market nearly as much as the long haul market." DWDM is expected
to thrive in carrier applications, as the optical network becomes
commonplace. Interexchange Carriers (IXCs) and Incumbent Local Exchange
Carriers (ILECs) will use DWDM technology to satisfy the growing amount of
network traffic attributed to ISPs. As the future of carrier networks
continues down the light and fiber path, next generation products and
technology will continue to push towards a pure optical network, in which
DWDM systems will maintain a long product life.

In-Stat also found the following:

* DWDM systems, which transmit multiple light wavelengths
simultaneously over the same fiber thread, drastically increase the number
of transmissions that can be carried over the fiber thread and are also
protocol-independent and have the ability to carry IP, ATM, SONET, etc.,
while still offering Quality of Service (QoS).

* DWDM systems are currently prominent in long haul applications, but
the metro applications market is gaining momentum, as the technology is
becoming feasible and affordable.

The report, "DWDM Systems: The Bright Future of Networking"(# TX0004MS),
presents an end-user market overview, overall market overview and a market
forecast for DWDM systems. The report also includes vendor profiles for long
haul, ultra long haul and metro vendors such as Alcatel, Cisco/Pirelli,
Ericsson, Qtera/Nortel, Lucent, Fujitsu, Siemens and Nortel. To purchase
this report or for more information, please visit
http://www.instat.com/catalog/cat-tx.htm#tx0004ms or call Matt Woods at
617.630.2139; mwoods@instat.com. The report price is $3,495 USD.

Cahners In-Stat Group (http://www.instat.com/) covers the full spectrum of
digital communications research from vendor to end-user, providing the
analysis and perspective that allows technology vendors and service
providers worldwide to make more informed business decisions.