ADSL technology turns standard twisted-pair copper phone lines into a high-speed connection for Internet access, video conferencing, remote access and multimedia applications, such as video on demand. It supports an upstream bit rate of 640 kilobits a second and a downstream rate of up to 8 megabits per second. Downstream is allocated a higher bit rate to handle large data transfers after the initial upstream connection is made.

Toshiba will apply cutting-edge capabilities licensed from Alcatel, a leader in ADSL DMT technology. The company's first LSI will be available in June, 1999. From this, Toshiba will develop ADSL LSI supporting ISDN in Europe and time-compression multiplex ISDN in Japan. Future developments will support G. Lite, the ADSL specification for 1.5 megabit a second downstream. Toshiba intends to combine the advantages of ADSL with its own capabilities in asynchronous transfer mode switching, ethernet and RISC technology, and to apply the results to modem products, cost-effective solutions for PCs and a series of high performance derivative products with a distinct technological edge. Toshiba can respond to customer demand for ADSL by applying its intellectual property to ASSP or customized ASIC products.

"We are very pleased to form this alliance," said Katsuji Fujita, general manager of Toshiba's System LSI Division. "Alcatel is a leader in ADSL Technology. This agreement gives us excellent positioning in the emerging market for ADSL-supported technologies and solutions and strengthens our presence in network applications."

"I am happy to welcome Toshiba as a valuable licensing partner in our strategic licensing programme", said Martin De Prycker, VP and general manager Internet Access & ADSL, Alcatel. He continues, "Alcatel has now a well-balanced ADSL licensee portfolio, with a complete geographical coverage which will support the dominant position of Alcatel in the future ADSL market."

About Toshiba
Founded in 1875, Toshiba Corporation is today the world's sixth largest electronics and electrical equipment manufacturer. The company had sales of US$41 billion in fiscal year 1997 (to March 31st, 1998) and over 180,000 employees in more than 55 countries. Toshiba has a long history of technological innovation, reflected in an R&D investment budget of approximately US$2.4 billion in 1997. The company is a world leader in high-technology products, including portable PC, computer peripherals, semiconductors and liquid crystal displays (LCD). Toshiba's web site is at www.toshiba.co.jp.

About Alcatel
A world leader in telecommunications systems and equipment as well as related cables and components activities, Alcatel operates in over 130 countries. Alcatel provides complete solutions and services to operators, service providers, enterprises and consumers, ranging from backbone networks to user's terminals. For more information, visit the Alcatel web site at http://www.alcatel.com.