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OEM Agreement Enables New Revenue Opportunities

RC Networks, Inc., a leading provider of in-building broadband access solutions, today announced that they have signed an Original Equipment Manufacturer (OEM) agreement with Alcatel (Paris: CGEP.PA and NYSE:ALA). The OEM agreement will enable Alcatel to offer RC Networks’ in-building product line, which is targeted at the multi-tenant unit (MTU) market, to service providers as part of Alcatel’s industry-leading portfolio of broadband wireless access solutions, including Alcatel LMDS (Local Multipoint Distribution Service) and Alcatel Wireless IP (Internet Protocol.)

"Incorporating RC Networks’ impressive suite of in-building products into Alcatel’s industry-leading broadband wireless access solutions is a natural fit," said Michel Peruyero, vice president of product management, Fixed Wireless at Alcatel."With RC Networks, Alcatel now enables service providers using broadband wireless access to capitalise on new revenue opportunities by addressing the requirements of customers in multi-tenant office buildings."

Supporting Alcatel’s leadership in the broadband access market, including DSL and DLC, Alcatel is currently the broadband wireless access market leader with over 6,000 base station sectors shipped and more than 100 customers in commercial deployments. The comprehensive Alcatel solutions are multi-service broadband wireless networks comprised of base station and customer premises equipment, and network and service management. With a reliable, high-performance broadband wireless access product suite available for immediate mass deployment, Alcatel has established itself as the broadband wireless access vendor of choice for service providers around the world.


Multi-Tenant Market Poised For Growth

According to a report by market research firm Cahners In-Stat Group, the U.S. market for multi-tenant broadband equipment and services will grow from $371 million in 2000 to nearly $2 billion in 2004. Factors contributing to this growth include the deployment of high-speed Internet connections to the MTU market, which will enable the delivery of new value-added services such as e-commerce, telephony, video and network management. Demand for broadband equipment will grow rapidly in order to build the infrastructure needed to deploy these services.

"This agreement with Alcatel significantly expands RC Networks’ distribution channel and strengthens our position in the global marketplace," said Jerry A. Dusa, president and chief executive officer of RC Networks. "Collaboration with such a highly respected broadband wireless supplier will allow us to further enhance our technology and support capabilities that will provide a compelling difference for service providers worldwide."

The RC8000Plus product family is a comprehensive line of next-generation DSL access concentrators that enables service providers to deliver value-added services such as Internet access, VoDSL, VoIP, video and VPN in one easy-to-install package. It offers advanced features that provide bandwidth flexibility and AnyPair technology that delivers in-building DSL access over existing in-use telephone wires. It also provides support for any available network access service such as Frame Relay or ATM, and simultaneous support for Layer2 switching and Layer3/4 IP QoS routing. These unique features give service providers the capability to offer a broad range of advanced business services.


For further information contact:

Donna Burke

RC Networks

+1 858 450 3436 ext. 1243

dburke@rcnets.com


Amy MacLeod

Alcatel CID

+1 613 784 1980

amy.macleod@alcatel.com


Press Contact:

Catherine Eyres/Mary Brain

Strategic Alliance International

+44 (0) 1494 434434

catherinee/maryb@strategicpr.net



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. For more information, visit Alcatel on the Internet: http://www.alcatel.com


About RC Networks

RC Networks, based in San Diego, Calif., USA, is a privately held, venture-backed company that develops and markets DSL-driven, in-building broadband access products for the global multi-tenant unit (MTU) market. These high-speed Internet access solutions enable carriers and other service providers to offer high-performance voice and data services easily and cost effectively. For more information, visit http://www.rcnets.com


or call +1 858 450 3370 (international).

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