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CIENA, Telcordia Drive Cost-Effective Ethernet Services Opportunities for Carriers' Existing Networks

Posted on: Monday, 9 August 2004, 06:00 CDT

Innovative Jointly Developed Technology Solutions Accelerate Customers' Businesses, Transform Telecommunications Industry, Deliver on Promise of Strategic Relationship

CIENA(R) Corporation (Nasdaq:CIEN), a leading global provider of intelligent service creation and delivery solutions, and Telcordia(TM) Technologies, Inc., a global provider of telecommunications software and services, are jointly developing and delivering new technology solutions that empower Incumbent Local Exchange Carriers (ILECs) to more efficiently introduce and manage new high-speed, carrier-class Ethernet services over their existing network infrastructures. Metro Ethernet services represent a $3.3 billion global opportunity today, with an expected growth to $15 billion by 2007.(1)

"Generating new revenue streams from existing network assets is the key to gaining and maintaining a competitive advantage in today's telecom industry - and it's what keeps many senior execs awake at night," said Dennis Tinley, senior vice president OSS solutions at Telcordia. "Teaming with CIENA to enable ILECs to maximize the significant opportunity in the Ethernet services market brings our Elementive(TM) strategy to life and represents the continued success of this relationship. Telcordia is delivering on its commitment to transform its OSMINE program to a vehicle that provides timely solutions to sophisticated technology challenges and makes delivering new services a simpler proposition for carriers worldwide."

The collaboration aims to establish Operations Support Systems (OSS) features to support the cost-effective deployment of advanced Ethernet-over-SONET services, specifically those enabled by CIENA's CN 2600(TM) Multiservice Edge Aggregator. Through the Generic Feature Development Services (GFDS) Program, Telcordia and CIENA are co-investing in numerous enhancements for SONET Virtual Concatenation enabling dynamic inventory management, alarm notification and automated flow-through provisioning of capacity for Ethernet services. With these enhancements, RBOCS can offer high-speed, carrier-class Ethernet services by leveraging their current OSS and SONET infrastructures.

The CIENA-Telcordia collaboration on Ethernet service delivery solutions validates the previously announced strategic relationship between the two companies and underscores the importance of OSS features that enable carriers to deploy new services, improve service levels, and optimize network assets without requiring significant additional financial investments.

"Together with Telcordia, we're helping ILEC customers create and deliver a new generation of revenue-rich services over their current OSSs and networks - combining the flexibility and efficiency of data services with the reliability of SONET," said Tom Mock, senior vice president of strategic planning at CIENA. "This supports CIENA's ongoing approach to evolving the telecom network to support highly reliable and valuable data services."

The recent teamwork also demonstrates the individual commitments from Telcordia and CIENA to work in partnership with industry leaders to advance the transformation of the telecommunications sector by introducing open, standards-based technologies that extend the value of carriers' existing network investments and support easy integration with other internally developed or third-party applications.

The new OSS features will support CIENA's CN 2600 Multiservice Edge Aggregator (formerly known as ONLINE Edge), which provides a single platform for carriers to deliver Ethernet, TDM and storage services. The solution is deployable over existing ILEC infrastructure, lowers the capital cost of service delivery by as much as 60 percent, and lowers operating expenses through platform consolidation and automated service provisioning. -0- *T (1) According to an IDC study, "Worldwide Metro Ethernet Internet Access Services Forecast, 2003-2007," published May 2003. *T

ABOUT CIENA

CIENA Corporation delivers innovative network solutions to the world's largest service providers, cable operators and enterprises, increasing the cost-efficiency of current services while enabling the creation of new carrier-class data services built upon the existing network infrastructure. Additional information about CIENA can be found at www.ciena.com.

ABOUT TELCORDIA TECHNOLOGIES, INC.

Telcordia Technologies, Inc. is a leading global provider of telecommunications software and services for IP, wireline, wireless, and cable. By delivering on its Elementive strategy of providing flexible, standards-based solutions that optimize complex network and business support systems, Telcordia enables customers to aggressively reduce costs and grow revenues. Telcordia, a subsidiary of Science Applications International Corporation (SAIC), is headquartered in Piscataway, NJ, with offices throughout the United States, Canada, Europe, Central and Latin America. www.telcordia.com

NOTES TO INVESTORS

This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions of CIENA (the Company) that involve risks and uncertainties. Forward-looking statements in this release, including but not limited to the features and benefits of CIENA's products, are based on information available to the Company as of the date hereof. The Company's actual results could differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with the Company's business, which include the risk factors disclosed in the Company's Report on Form 10-Q filed with the Securities and Exchange Commission on May 20, 2004. Forward-looking statements include statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward looking words such as "anticipate,""believe,""could,""estimate,""expect,""intend,""may,""should,""will," and "would" or similar words. The Company assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.

Telcordia Technologies is a wholly owned subsidiary of SAIC. Statements in this announcement other than historical data and information constitute forward-looking statements that involve risks and uncertainties. A number of factors could cause our actual results, performance, achievements or industry results to be very different from the results, performance or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in SAIC's Annual Report on Form 10-K for the period ended January 31, 2003, and such other filings that the Company makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.

(1) According to an IDC study, "Worldwide Metro Ethernet Internet Access Services Forecast, 2003-2007," published May 2003.

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