First All-Asynchronous Transfer Mode Network Supports Business of Maine-based Food Retailer

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First All-Asynchronous Transfer Mode NetworkSupports
Business of Maine-based Food Retailer

Network Uses Bell Atlantic Services, Cisco Systems Edge Devices for Voice, Data and

August 17, 1998


Jim Smith,
Bell Atlantic
Sharon Heard,
212 395-8758
Steve Bauer,
CISCO Systems
Susan Pierter,
Hannaford Brothers
John Puccio,
Hill and Knowlton

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Print Quality Photo

Click Here for Print 
Quality Photo

SCARBOROUGH, Maine -- 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 System, Inc. to satisfy the customers growing need for high-speed data
transmission and low-cost voice communications.

Bell Atlantics ATM connections, scaleable to data pathways from 145 megabits per second downward, work
in conjunction with Cisco MC3810 multi-service 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 Hannafords 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

"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 Atlantics ATM service and Ciscos multi-service 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), a subsidiary of Bell Atlantic that plans, implements,
manages and supervises enterprise networks, provided installation, implementation and project management
services for a pilot of the network. Additionally, BANI provided consulting service and sourcing for
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, including Ciscos concentrators, software, carrier
services and Hannafords applications.

"By bringing together Bell Atlantics network integration services and ATM transport function with
Ciscos 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.

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

The versatility of Bell Atlantics 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 Hannafords data system, Bell Atlantic connected all 55 of Hannafords 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. "Its 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

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 Atlantics enormous 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 scaleable 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 Atlantics network also supports innovative applications such as
distance learning and telemedicine.

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.

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

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. BANIs 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 headquarters
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

Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in
networking for the Internet. News and information are available at

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