DIGITAL TELEPORT AND PIRELLI ANNOUNCE CONTRACTS VALUED AT $240 M

llion 


       Naming Pirelli As DTI's Primary Supplier Of WDM Equipment And
                  Exclusive Supplier Of Fiber Optic Cable


ST. LOUIS, Sept. 9 /PRNewswire/ -- Digital Teleport Inc. (DTI) of St.
Louis and Pirelli Cables and Systems today announced the awarding of two
contracts to Pirelli valued at $240 million naming Pirelli as the exclusive
supplier to DTI of fiber optic cable and the primary supplier of the WDM
equipment used by DTI in the completion of its planned coast-to-coast network. 
DTI awarded Pirelli a three-year contract valued at $100 million for its
wavelength division multiplexing equipment in which DTI agreed to purchase
from Pirelli 80% of the WDM equipment used in completing the remaining
approximately 16,500 miles of the planned 18,500-mile coast-to-coast DTI
network. DTI also awarded to Pirelli a two-year contract valued at $140
million naming Pirelli as its exclusive supplier of fiber optic cable
purchased to complete the DTI network on the approximately one-half of the
fiber routes that DTI intends to construct rather than acquire through long
term indefeasible rights to use. 
DTI is creating an approximately 18,500-route-mile digital fiber optic
network comprised of 19 regional rings interconnecting primary, secondary and
tertiary cities in 37 states. Deliveries of Pirelli WDM equipment to DTI are
scheduled to begin in September. 
DTI President Richard Weinstein said Pirelli was best able to meet DTI's
network needs and is the only supplier offering both cable and WDM capability
as a means of increasing network capacity. "Pirelli understands our business
needs," he said. "Pirelli offers the WDM technology that makes it possible to
offer to our customers a reliable, more than 150-gigabit, ring-protected
solution for their regional transport needs." Weinstein added that Pirelli's
ability to provide consistent quality and consistent on-time delivery were key
factors in DTI's decision to award the exclusive cable contract. 
Giuseppe Morchio, chairman and CEO of Pirelli Cables and Systems, pointed
out that the WDM and cable contracts illustrate Pirelli's unique position as a
vertically integrated optical systems supplier to the communications industry. 
"Unprecedented growth of demand in the communications industry by rapidly
growing companies such as DTI generates the need to rapidly expand capacity
and to manage increased system complexity. From a business standpoint,
managing exponential growth in throughput and complexity demands deployment of
revolutionary technologies in evolutionary upgrades, which can provide high
rates of return on the investment," he said. 
"The Pirelli Group is in a unique position to help DTI take full advantage
of its growth opportunities. By exclusively focusing its communications
strategy on optical technologies, Pirelli Cables and Systems has pioneered
development and deployment of fiber optic and photonic products, allowing
rapid expansion of communication networks," he added. 
Pirelli will provide DTI with a WDM system on its WaveMux(TM) platform,
which can grow to 128 channels, giving customers full system flexibility and
use of conventional fiber for very high speed transmission. Pirelli unveiled
its 128-channel system at SuperComm '98 in Atlanta. The 128-channel
TeraMux(TM) Hyper-Dense WDM system presents a new generation of optical
technology that raises the level of transmission capacity to a new order of
magnitude, from the gigabit to the terabit. Each optical channel is capable of
carrying up to 10 gigabits of information per second over a single optical
fiber. At full capacity, each fiber pair can deliver 1.28 terabits of data per
second, the rough equivalent of 16 million simultaneous telephone calls. 
The system also features a fully integrated element management system. 
DTI is offering to its carrier customers dedicated, virtual circuits
through the exclusive use of OC-48 capacity, ring-redundant optical windows
from WDM equipment on the regional rings throughout the DTI network.  DTI will
use the OC-48 optical windows to offer its carrier customers a high quality,
ring-redundant means to efficiently deliver their calls to a significant
number of end-users along these rings.  The DTI regional rings will also offer
carriers a means to aggregate, for further long haul transport, the outgoing
calls of that carrier's customers along such rings to regional points of
interconnection between the carrier's network and DTI's network for further
transport by the carrier. 
Pirelli Cables and Systems North America is headquartered in Columbia,
S.C. With facilities in Lexington and Abbeville, S.C., Colusa, Calif., Surrey,
British Columbia, St-Jean-sur-Richelieu, Quebec, and Prescott, Ontario, it
provides fiber optic cable and photonics equipment for the communications
industry and energy transmission and distribution cable for the utility and
commercial building industries. 
Pirelli Cables and Systems is a global manufacturer of communications and
power cables and systems. With 14,000 employees, 49 plants, Research and
Development centers in Italy, the United States, France, Great Britain and
Brazil, and total sales of more than $3.5 billion, Pirelli ranks among the
world leaders. The company is increasingly focusing its R&D and manufacturing
resources and competencies on leading edge technologies, based on optical
fibers and photonics for communications networks and superconductivity for
power transmission.
 

SOURCE  Pirelli Cables and Systems North America 
-0-                                              09/09/98 
/CONTACT: Lee Bussell, Pirelli Cables and Systems North America,
803-254-8158 or Gary Douglass, Digital Teleport Inc., 314-253-6600/ 
CO:  Pirelli Cables and Systems North America; Digital Teleport Inc.
ST:  South Carolina, Missouri
IN:  TLS
SU:  CON
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