John Roth Expect Quotations

Given our strong market position and leadership in high-performance Internet solutions, we continue to expect to grow significantly faster than theÊ market, with anticipated growth in revenue and earnings per share from operations in the 30 to 35 percent range,

We only expect a meaningful rebound in capital spending following a period of industry rationalization and an improved economic environment. Given the uncertainty as to the extent and timing of these events we are not providing specific financial guidance for the next quarter of full year 2001.

We continue to expect that our percentage growth in revenue and earnings per share from operations in 2000 over 1999 will be in the low 40's,

We continue to expect our optical Internet revenues to grow in excess of 125 percent in 2000 over 1999, to exceed $10 billion.

We expect that our revenue growth in 2000 over 1999 will be in the 30 to 35 percent range, up from our previous view of 20 to 21 percent, and that our growth in earnings-per-share from operations in 2000 compared with 1999 will be around 30 percent,

We are seeing longer than expected delays in spending by our U.S. customers as they continue to assess the impact of the economic and market conditions on their businesses,

In light of the current levels of expected industry spending, we are adjusting our work plan and targeting a cost structure, expected to be in place during the first quarter of 2002, to drive breakeven at a quarterly revenue level well below $4 billion, instead of the $5 billion quarterly revenue level outlined previously.

Looking forward to 2001, we expect the overall market to grow in excess of 20 percent. Given our strong market position and industry-leading networking solutions, we expect to continue to grow significantly faster than the market, with anticipated growth in revenues and earnings per share from operations in the 30 to 35 percent range.