The deal is valued at $70 million (Euro $75 MM) in revenue and includes cornerstone products and services from ADC’s extensive portfolio of DSL solutions, including the Avidia System multi-service DSLAM, StarGazer comprehensive element management software (EMS) and industry-leading integration services. The deal also marks ADC’s first major sale of DSL equipment into France.

Kaptech’s DSL strategy of providing high-bandwidth services to small and medium business subscribers requires an experienced company dedicated to our success. The ADC DSL solution is the most appropriate to implement our unique voice over DSL strategy which is available today on our network through our Cirpack switches, said Mr. Pierre Prieux, CEO of Kaptech. We feel extremely confident that ADC is the right company to support our strategy due to their extensive experience with carriers deploying converged services over DSL, the rich feature set of the Avidia platform, and their established service organization here in France.

Kaptech plans to offer a complete suite of communication products to an expanded business subscriber base throughout 19 cities in France by the end of 2002. The Avidia System solution will help Kaptech to address its subscriber base with a greater variety of service offerings quickly, easily and more profitably.

Kaptech is aggressively pursuing the business DSL market, including the use of the latest standardized technologies to address business needs, said Sean Martin, general manager of ADC’s DSL Division. The selection of the Avidia System is key to Kaptech’s execution of this strategy, because Avidia’s superior capabilities support both the technical and business requirements of profitably deploying business services.

The Avidia System incorporates capabilities normally found only in high-end A(TM) core switches that automate both the provisioning of end-to-end PVCs (Permanent Virtual Circuits) and the recovery of failed PVCs. These capabilities proved vital in Kaptech’s selection of the platform because the system supports the Quality of Service (QoS) necessary to satisfy business customers. Equally critical to Kaptech’s strategy is the fact that the Avidia System supports G.shdsl today — the most advanced business DSL technology available.

Business solutions require maximum symmetrical bandwidth to handle data intensive applications, such as integrated voice services, content-rich intranets or VPNs, videoconferences, and more. The optimum DSL technology to deliver symmetrical bandwidth is g.shdsl, which features greater rate/reach performance, improved spectral compatibility, automated multi-rate negotiation/adoption, lower latency, two-wire transmission and lower power consumption.

The Avidia System includes multi-service DSLAMs in a variety of chassis sizes, multi-function customer premises equipment (CPE) to address varying end user needs, and comprehensive element management software to simplify installation, management and maintenance of Avidia deployments. In combination with ADC’s integration services, Avidia helps carriers around the globe to quickly, easily and more profitably deploy advanced revenue-generating services based on DSL. Kaptech and ADC are in further negotiations considering other products from ADC’s DSL portfolio to enhance Kaptech’s DSL network.

ADC has one of the most comprehensive lines of last mile DSL solutions available in the world, including multi-service DSLAMs, high-performance customer premise equipment, OSS software, and integration services.