SCARBOROUGH, Maine -- August 10, 1998 -- Hannaford Bros. Co. multi-regional food retailer is the first retail company in the Northeast to operate its business using an all Asynchronous Transfer Mode (ATM) network for data, voice and video communications linking its headquarters and supermarkets throughout Maine.

The custom network builds on innovative technology constructed by Bell Atlantic-Maine and employs new equipment deployed by Cisco Systems, Inc. to satisfy the customer's growing need for high-speed data transmission and low-cost voice communications.

Bell Atlantic's ATM connections, scalable to data pathways from 145 megabits per second downward, work in conjunction with Cisco MC3810 multiservice access concentrators to handle intracompany voice and data communications. Hannaford uses the network for store-to-headquarters transmission of point-of-sale tallies and inventory balances.

This information flow feeds a perpetual inventory system and a decision support system. The network also will be used to support Hannaford's Intranet and email system and a planned Internet-based sales channel. In addition, Hannaford plans to use ATM technology for video conferencing and video security systems.

"We are transmitting 15 times more data than we did three years ago and we were running out of capacity on our satellite-based corporate network," said William Homa, Hannaford chief information officer. "The combination of Bell Atlantic's ATM service and Cisco's multiservice access concentrators provides 80 times the bandwidth capacity of our old telecommunications network.

"By converging data and voice on the same network, we were able to virtually eliminate store-to-headquarters toll charges, leading to a substantial savings on intracompany calls, and we have improved point of sale support to each retail outlet," Homa said.

Bell Atlantic Network Integration, Inc. (BANI) sourced and assisted in the trial of the new Cisco equipiment, assisted in its field trial, and provides fault management services monitoring the edge devices for Hannaford. BANI provided installation, implementation and project management services of a pilot of the network. The pilot, which both laid the groundwork for the final network and ensured the quality of its performance, involved testing all the equipment, software, carrier services and Hannaford's applications.

"By bringing together Bell Atlantic's network integration services and ATM transport function with Cisco's tailor-made concentrators, we got a vastly better network at efficiencies that will bring us a financial return in less than 30 months," Homa said.

Hannaford's ATM application initially connected 55 stores to its Scarborough headquarters. In the future, all 150 of Hannaford's stores from Maine to South Carolina will be connected.

The versatility of Bell Atlantic's regionwide ATM backbone was demonstrated in an expedited rollout of the network. This spring when the Galaxy IV satellite failed just before the Memorial Day weekend, disabling Hannaford's data system, Bell Atlantic connected all 55 of Hannaford's Maine stores to the new network. Remaining stores re-aimed their dishes at other satellites.

"Hannaford is breaking new ground with its innovative, wide-reaching network," said Wayne Zuckerman, vice president-business sales at Bell Atlantic. "It's taken a high-capacity data pathway and fed an array of data, voice and video functions that support the business and its customers right out to the local stores."

BANI, which also provides network operations and management services to its clients, will continue as the principal contractor as the Hannaford network expands in the coming months.

Thanks to Bell Atlantic's multi-billion-dollar network infrastructure investment in Maine, the state has one of the most technologically advanced telecommunications systems in the world. With ATM switches, this advanced network makes flexible and scalable fiber optic connectivity available to all communities in Maine. The network provides both narrowband (T1) and broadband (45 and 155 Mbps) ATM pathways for transmitting switched voice, data and full-motion video to multiple locations.

"Our fiber-optic based ATM networks can competitively position Maine businesses, allowing them to benefit from the enhanced productivity and efficiencies derived from state-of-the-art telecommunications technology," said Ed Dinan, Bell Atlantic-Maine president and CEO. Bell Atlantic's network also supports innovative applications such as distance learning and telemedicine.

About Hannaford Brothers

Hannaford Bros. Co. operates 150 supermarkets and food and drug combination stores in northern New England, New York, Virginia, and North and South Carolina under the names of Shop 'n Save, and Hannaford Food and Drug Superstores. A publicly-held company (NYSE-HRD) with annual sales of $3.2 billion, Hannaford employs 24,000 associates in eight states. The company also owns and operates its own distribution system, with four distribution centers -- two in Maine, one in New York and one in North Carolina -- and Hannaford Trucking Company, a wholly-owned subsidiary.

About Bell Atlantic

Bell Atlantic - formed through the merger of Bell Atlantic and NYNEX - is at the forefront of the new communications and information industry. With 41 million telephone access lines and 6.7 million wireless customers worldwide, Bell Atlantic companies are premier providers of advanced wireline voice and data services, market leaders in wireless services and the world's largest publishers of directory information. Bell Atlantic companies are also among the world's largest investors in high-growth global communications markets, with operations and investments in 23 countries.

About Bell Atlantic Network Integration, Inc.

Bell Atlantic Network Integration, Inc. (BANI), an unregulated subsidiary of Bell Atlantic Corp., is a leading data, video and voice network integrator focused on providing customers with end-to-end networking solutions. BANI's cutting-edge integration services delivered via a single-point-of-contact cover the full "Network Lifecycle" from the planning and implementation to the management and support of enterprise networks. Incorporated in 1993, BANI is one of the first U.S. network integrators to achieve company-wide ISO 9001 certification. With headquarteres in Frazer, Pa., and 33 offices across the United States, BANI is positioned to serve customers both within and outside the Bell Atlantic region. Visit BANI at www.bani.com.

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