Paris, Tokyo, March 19, 2003

- 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 AWG-VOA modules with remote control. They will provide multiplexing and demultiplexing functions for DWDM optical equipment accommodating up to 40 channels. These standardized modules integrate one arrayed waveguide grating (AWG), Multiplexer or DeMultiplexer, with variable optical attenuators (VOAs), tap detectors and embedded electronics, offering VOA functions and optional signal and power monitoring. The new common specification ensures that network equipment manufacturers have a choice among compatible sources, while the foremost suppliers are able to reduce AWG-VOA' lead-times, footprint and cost.

Through this new agreement and for the first time, integration of passive and active devices enters the domain of standardization, until now reserved for separate functions. This agreement defines common mechanical features, electrical interface and control electronics for the AWG-VOA modules. More specifically, it defines the package size (220 x 135 x 31mm³) and outlines for modules capable of handling up to 40 channels. Each module communicates to the system via an industry standard I2CTM interface bus. This allows monitoring and adjustment of key parameters such as mode of operation, attenuation setting and power output, without on-site intervention. The optical performance including insertion-loss, cross-talk etc is up to each MSA member, who will independently develop and market compatible AWG-VOA products.

"In today's environment where cost, size and power consumption reduction are critical to our customers, hybridization is the right solution," explained Philippe Bregi, Chief Operating Officer of Alcatel Optronics. "This MSA illustrates our commitment to provide our customers with innovative products based on planar hybrid platforms."

"Given the dramatic restructuring of the optical networking equipment vendors, there is a growing demand for the multi-functional, intelligent optical modules using standardized mechanical, electrical and firmware interfaces" said Dr. Seiichi Okubo, a member of the Board Director, and Deputy Group Executive of the Information Systems Group of Hitachi Cable. "The announcement of this MSA for AWG-VOA modules is a significant first step in this direction. We intend to continue on this path, working with others to form MSAs as much as possible."

"The integrated subs system like AWG-VOA is one of the products that our customers long for", said Dr. Nakahara, Senior Managing Director in NEL, and Executive Director of photonics business groups. "It must bring many pros for equipment manufacturers; it saves in-house cost of assembling discrete components, makes WDM equipment compact, and reduces system design cycle time needed for version-up. NEL focuses on developing such value-added products that integrate hardware with software."

The AWG-VOA MSA group is an open forum, welcoming applications from capable manufactures that wish to join.

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

Mark Hesketh /Alcatel Optronics	mark.hesketh@alcatel.co.uk
Susumu Himi / Hitachi Cable	himi.susumu@hitachi-cable.co.jp
Akira Himeno / NEL	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. For more information, visit Alcatel Optronics on the Internet: www.alcatel.com/optronics

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, Wavelength Splitter 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: www.hitachi-cable.com

About NEL

NTT Electronics Corporation (NEL) is one of the members of NTT (Nippon Telegraph and Telephone Corporation) group. It has been providing the state-of-the-art devises for optical telecommunications networks with collaboration of NTT laboratories, covering a wade range of products such as DWDM lasers, PLC-based passive components, ultra-high-speed electronic devices, MPEG-2 products, and datacom equipments. For AWGs, in particular, NEL keeps on the first truck in terms of sales and technical performance. For more information, visit NEL web site: www.nel-world.com

Alcatel Press Contacts

	Tel	Mail
Willem Zevenbergen / HQ	+33 (0)1 40 76 11 38	Willem.zevenbergen@alcatel.fr
Guy Mesquida / Alcatel Optronics	+33 (0) 1 64 49 49 03	Guy.mesquida@alcatel.fr

Alcatel Investors Relations

Claire Pedini	+33 (0)1 40 76 13 93	claire.pedini@alcatel.com
Laurent Geoffroy	+33 (0)1 40 76 50 27	Laurent.geoffroy@alcatel.com
Pascal Bantegnie	+33 (0)1 40 76 52 20	Pascal.bantegnie@alcatel.com
Peter Campbell	+1 972 519 4347	Peter.campbell@alcatel.com
Charlotte Laurent-Ottomane	+1 703 668 3571 +33 (1) 40761327	charlotte.laurent-ottomane@alcatel.com

Hitachi Cable press contact

Louis Marra

Tel: +1 914 993 09 90

Lmarra@hitachi-cable.com

NEL press contact

Noboru Hagiwara

+ 81-3-5456-4192

hagiwara@hqs.nel.co.jp