Tellabs Inc.,

July 1, 1997

Tellabs Inc.,

Lisle, IL, has signed a letter of intent to supply Cincinnati Bell Telephone, Cincinnati, OH, with its Synchronous Optical Network-based titan 5500 digital crossconnect system. The two parties are negotiating a contract that would make Tellabs Cincinnati Bell Telephone`s single supplier of Sonet 3/1 digital crossconnect systems. Overseas, Tellabs will supply its Martisdxx managed access and transport network system to Libancell of Lebanon. Libancell will use the equipment to link its gsm (global standard for mobile) facilities to a Synchronous Digital Hierarchy backbone.

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