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TELECOMMUNICATIONS CARRIERS SEE RAPIDLY APPROACHING SHIFT TO SIMPLIFIED NETWORK WITH CORE OPTICAL LAYER

New Research Rates CIENA as Leader in DWDM and Best Overall in Optical Networking; CIENA Also Cited as Easiest Vendor to Work With

Telecommunications companies almost unanimously believe that network architectures will shift to data-friendly, packet and cell-based networks, directly connecting IP and/or ATM to the optical layer according to new research released today. Forty-four percent of the decision-makers surveyed said that this simplified network shift will be significantly underway by the end of 1999.

The survey, conducted by Yankelovich Partners, queried decision makers from telecommunication service providers, including interexchange carriers (IXCs), regional Bell operating companies (RBOCs), and competitive local exchange carriers (CLECs), some of which were Ciena customers. Participants were unaware that Ciena Corporation (NASDAQ: CIEN) commissioned the study.

"The research confirms that data and Internet growth is causing service providers to begin adoption of the highly scalable optical networking architecture we have been driving over the last two years," said Steve Chaddick, Ciena's senior vice president for strategy and corporate development. "Industry-wide, this shift toward an optical core represents the next big opportunity for differentiation amongst service providers and equipment vendors alike."

Survey Highlights

Highlights of the study include:

• Almost unanimously, decision-makers believe that simplification of the current circuit-switched network toward a more data-centric approach, directly connecting IP and/or ATM to the optical layer will occur. Forty-four percent responded they believe significant steps toward such simplification will occur in 1999, and there was an equally divided view over the role SONET would play in this next generation network.

• Ciena received the highest average ratings with regard to leadership in developing new technology, surpassing Alcatel, Nortel, Pirelli, NEC and Lucent.

• Decision-makers rated Ciena as the company in the industry that is "easiest to work with," and Ciena was named as the leader in delivering service and support to its customers.

• Decision-makers said the most important factors in choosing a DWDM vendor include product features, customer service, system scalability and network management capabilities.

• Ciena was named most often as the leader in DWDM systems.

• Ciena was mentioned most often as the best company overall in optical networking.

• Ciena was named as the company in the industry most likely to deliver on a new product on the date promised when the product was announced.

"Yankelovich's findings indicate overwhelming support for Ciena's vision and prove that carriers believe that direct connection of cell and packet data to the optical layer is the first step toward a true next generation network," continued Jesús León, vice president, products & technology at Ciena. "We plan to continue driving innovation in the industry, enabling a smooth transition from current SONET-based legacy systems to next generation optical networks."