ADVA ACHIEVES 20,000 WDM CHANNELS DEPLOYMENT MILESTONE

ADVAs customer base grows to 47 service providers and over 500 enterprises

ADVA ACHIEVES 20,000 WDM CHANNELS DEPLOYMENT MILESTONE

ADVAs customer base grows to 47 service providers and over 500 enterprises

Martinsried/Munich, Germany and Ramsey/New Jersey USA -- December 6, 2001 -- ADVA Optical Networking (German Neuer Markt: ADV), a leading global provider of optical networking solutions, today announced that it has successfully deployed a total of over 20,000 WDM channel cards in metropolitan networks. This milestone comes within a year after ADVA reached the 10,000 WDM channel mark and reflects ADVAs growing presence in the market. During this period, ADVAs customer base has also increased substantially: its FSP portfolio is now operational at 47 service providers and over 500 enterprises worldwide -- up from 25 service providers and 420 enterprises a year ago.

The 20,000th channel milestone shows ADVAs traction in the marketplace; ADVA announced 10,000 WDM channels last October and within a year has amassed yet another WDM 10,000 channels. This is a testimony to the appeal of its FSP portfolio with service providers and shows ADVAs continued success compared with many start-ups that are floundering," said Brian L. Protiva, ADVAs Chief Executive Officer.

ADVAs FSP portfolio has been deployed worldwide -- in over 200 metropolitan areas, by both incumbent carriers and emerging next-generation carriers. Some of ADVAs blue-chip carrier customers include: BellSouth, Belgacom, BT ignite, COLT Telecom, Eircom, E-Plus, Finnet, France Telecom, M"NET, PTT Luxembourg, SBC Ameritech, Swisscom, Telefonica, Telenor, Torch Telecom, Verizon, Worldcom, and XchangePoint. In addition, more than 500 enterprises have deployed ADVA solutions, including Fortune 1,000 companies, financial institutions, automobile manufacturers, insurance companies, and high-tech companies.

ADVA has developed a portfolio that is tailored to address real business concerns in the various metro segments. It has done so by providing cost-effective solutions for both the metro access and core opportunities. The ease of use through ADVAs Network Planning tool & Network Management system augments this appeal by simplifying the engineering, installation, and management of optical networks. By understanding the diverse requirements of the metro market, ADVA has obtained leadership in the enterprise space and rapid acceptance by numerous service providers.

ADVAs FSP portfolio comprises the FSP 500, FSP 1000, FSP 2000, and FSP 3000, and is expressly designed for the enterprise, metro access, and metro core markets. This is ADVAs fourth generation of optical networking platforms and is engineered to offer the lowest total cost of ownership to its customers. ADVA also received the 2000 Market Engineering Product Line Strategy Award from Frost and Sullivan for its market-leading integrated optical enterprise access platforms.

The pace of ADVA WDM channel deployment during 2001 has been accelerated in large part due to the strong sales channels that ADVA has developed over the years. ADVA has an OEM agreement with Siemens through which Siemens markets, sells, and supports the entire FSP portfolio under its TransXpress Waveline brand. In addition, ADVA also has agreements with Cisco (which sells the FSP-II labelled as the Metro 1500), Alcatel (which sells the FSP 3000 under the 1690 brand), and a host of other channels. ADVA has also established relationships with several Value Added Resellers (VARs) and strategic marketing partners like Extreme Networks to address vertical and regional markets.

This milestone is a tribute to ADVAs well-crafted sales-channel strategy; it has developed key partnerships that have given it unprecedented access to carrier markets," said Chris Nicoll, Vice President, Current Analysis. The coverage from its partnerships is extensive and will allow ADVA to accelerate its market presence worldwide."

ADVA has created a rapidly growing business without the usual amount of venture capital funding typical for most optical networking start-ups. Management has skillfully identified an important market niche, established the best price/performance product in the market, and negotiated key distribution partnerships resulting in rapid revenue and customer growth. They have quietly exercised an aggressive acquisition strategy, broadened their product line, and captured key technical skills. ADVA is leveraging their success and customer relationships in the enterprise access market to enter into the metropolitan access, transport, and optical switching markets," said Mark Storm, Optical Networking Program Leader, Frost & Sullivan.

To support such a large base of installed WDM channels, ADVAs technical support services for end customers in the U.S. were strengthened through the launch of the FSP Rapid Response, a 7 by 24 support service. The addition of the FSP Network Planner to the FSP solutions portfolio has also proved a great success in supporting carrier customers further, as it simplifies the complex and time-consuming process of planning and designing networks.

ABOUT ADVA OPTICAL NETWORKING
ADVA Optical Networking is a leading global provider of optical networking solutions for the deployment, management, and delivery of high-speed services for the metropolitan area and enterprise markets. ADVA is leveraging its core technologies and expertise in the enterprise market to maximize growth opportunities in the exploding metro market. Key services include high-speed data, storage, video, and voice applications. The ADVA product portfolio is sold through an international network of distributors, value-added resellers, and original equipment manufacturers, in coordination with ADVA s own regional sales offices and direct service provider sales force. Customers include over 47 telecommunications organizations and metro service providers, as well as more than ca. 500 Fortune 1,000 companies, universities, and government agencies.
      

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