Tele Danmark Chooses Tellabs for Expansion of International Backbone Network.

Agreement Will Strengthen Tele Danmark's Presence in the European Marketplace

LISLE, Ill., Aug. 7 /PRNewswire/ --

Tellabs (Nasdaq: TLAB) announced today that Tele Danmark, the largest network operator in Denmark, has selected Tellabs' DWDM (dense wavelength division multiplexing) and SDH (synchronous digital hierarchy) solutions for its new Pan-European network covering Germany, Sweden, Norway and Denmark. The agreement, which covers backbone and access applications, will enable Tele Danmark to offer high-quality Internet, mobile and telephony services to business and residential customers as well as carrier services to other telecommunications service providers.

As part of the agreement, Tele Danmark will expand its existing backbone networks with Tellabs' next-generation DWDM platform, the recently released FOCUS(TM) 6200 system. Tellabs' earlier generation of wavelength products, FOCUS WDM system, has been in service in Tele Danmark's networks since 1998.

Tele Danmark, which is owned by San Antonio, Texas-based SBC Communications (NYSE: SBC), also is installing the FOCUS AC4 system, an advanced and well-established trunk SDH network solution in its new Pan- European network. The entire network will be managed by Tellabs' carrier- class, multi-vendor FOCUS NM2100 management system.

"Tellabs delivers a complete solution that will enable us to meet the voice and data needs of our customers today and can scale to meet their future needs," said Henning Dickow, vice president of trunk network at Tele Danmark. "By working with Tellabs, we can meet our growing bandwidth demands and manage the equipment with one system."

"We are pleased to work with Tele Danmark to help migrate its networks to deliver expanded services in more markets," said John Vaughan, president of Global Sales and Service at Tellabs. "Tellabs is committed to helping providers like Tele Danmark build their existing networks and meet the growing needs of their customers."

Tele Danmark is the principal provider of a full range of telecommunications services in Denmark and holds significant interests in a range of telecom companies across Northern and Continental Europe. Tele Danmark has 18 operations in 12 countries. Domestic activities include landline and cellular telephone services, data communications, Internet, leased lines, cable television and directory services. The company was privatized in 1994 and today SBC Communications owns 42 percent of the shares, with the remaining shares held by individual and institutional shareowners all over the world. Tele Danmark's 1999 net revenues were DKK 38.206bn, a growth of 14 percent, earnings per share before one-time items were 16.23, a growth of 19.2 percent.

Tellabs designs, manufactures, markets and services optical networking, next-generation switching, and broadband access solutions. These solutions are supported by the company's professional services. Tellabs' products are used worldwide by providers of communications services. Tellabs stock is listed on the Nasdaq Stock Market (TLAB).

Tellabs and Tellabs logo are registered trademarks and FOCUS is a trademark of Tellabs or one of its affiliates in the United States and/or in other countries.