Paris, Tokyo, December 5th, 2002

- Alcatel Optronics [Paris: CGO; NASDAQ: ALAO], Hitachi Cables and NEL, three leading companies in the planar passive domain, today announced a multi-source agreement for thermally stabilized Arrayed Waveguide Grating (AWG) modules. These standardized AWGs will provide multiplexing and demultiplexing interfaces for DWDM optical equipment. The new common specifications ensure that network equipment manufacturers have a choice among compatible sources, while the foremost suppliers are able to reduce AWGs'lead-time and cost.

Through this new agreement, complex passive devices enter the world of standardization, until now reserved to active functions. It defines common mechanical features and electrical parts of the AWG modules and, more specifically, package outlines for the AWGs with up to 48 channels, heater resistance, pin function definitions, and software. The optical performance, such as insertion-loss and cross-talk, is up to each MSA member, who will independently develop and market compatible AWG products.

"The development of this MSA recognizes the maturity of AWG technology and its widespread adoption by system vendors," explained Philippe Bregi, Chief Operating Officer of Alcatel Optronics. "In today's environment of cost and inventory reduction, the development of common platforms is critical and will mutually benefit our customers and ourselves."

"We are pleased to participate in this MSA", added Dr. Seiichi Okubo, a member of the Board of Directors, and Deputy Group Executive of the Information Systems Group of Hitachi Cable. "This MSA is a win for both the AWG vendors and our customers. For us vendors, standardization of the mechanical and electrical interfaces will allow us to concentrate on the optics, the heart of the devices. For our customers, enhanced cost reductions can be realized."

"The MSA surely benefits the incumbent customers and stimulates the demand of the potential users", said Dr. Nakahara, Senior Managing Director, and Executive Director of Photonics Business Group of NEL. "After having five-year research experience of AWGs in NTT laboratories, I moved to NEL to commercialize and penetrate them all over the world. NEL continues to contribute to equipment vendors by supplying innovative products like this."

The thermally tuned AWG MSA group is an open forum, welcoming applications from AWG manufactures that wish to join.

For more information on detailed technical specifications or joining the MSA, please contact the following MSA representatives:

Alcatel Optronics, Mark Hesketh	mark.hesketh@alcatel.co.uk
Hitachi Cable, Susumu Himi	himi.susumu@hitachi-cable.co.jp
NEL, Akira Himeno	himeno@photo.nel.co.jp

About Alcatel Optronics

Alcatel Optronics designs, manufactures and sells high performance optical components, modules and integrated sub-systems for use in terrestrial and submarine optical telecommunications networks. Alcatel Optronics is a leading supplier of DWDM lasers, photodetectors, optical amplifiers, high-speed interface modules and key passive devices such as arrayed waveguide multiplexers and Fiber Bragg Grating filters. It also has experience in integrating active and passive components and modules into sub-systems. The Optronics Division is part of Alcatel's Optics Group which comprises Alcatel's world-leading activities in optical networking, including submarine and terrestrial transmission systems, fiber optics and optical components. For more information, visit Alcatel Optronics on the Internet:

About Hitachi Cable

Hitachi Cable, Ltd., is the solution provider supporting daily global communication needs, by innovating a variety of cabling products from Optical Fiber Cables (Terrestrial and Submarine), Base Transmitting Station Cables and Antennas, FTTH components and Optical Transceivers. Hitachi Cable as an original leading manufacturer of Array Waveguide Gratings filters, Interleaver and Splitter based on Planar Lightwave Circuit technology, supports the key function of DWDM systems since its beginnings. For more detailed information, visit our web site:

About NEL

NTT Electronics Corporation (NEL) is a subsidiary of NTT (Nippon Telegraph and Telephone Corporation) with headquarters in Tokyo, Japan and a sales office in Saddle Brook, New Jersey, U.S.A. NEL is engaged in technological development covering a wide range of areas in both hardware and software, including Photonic Devices, Optical Semiconductor Devices, Ultra-High Speed Electronics Devices, multimedia products and network products. Further information on NEL can be found at

Alcatel Optronics press contact

Guy Mesquida

Tel: +33 (0) 1 64 49 49 03

guy.mesquida@alcatel.fr

Hitachi Cable press contact

Louis Marra

Tel: +1 914 993 09 90

Lmarra@hitachi-cable.com

NEL press contact

Noboru Hagiwara

Tel: + 81-3-5456-4192

hagiwara@hqs.nel.co.jp