April 26, 1999

DES PLAINES, Ill. - Telecommunications systems leader Tellabs Inc. has selected Waterstone Consulting to develop and implement a global manufacturing systems strategy which will help the company better focus on productivity gains and global capacity maximization. This partnership with Waterstone will better help the company reach its goals of achieving $2 billion in annual revenue by the year 2000 and occupying a top three position as a telecommunications supplier by the year 2003.

Once the strategy is fully implemented, Tellabs will be able to link shop floor activity to its ERP and device control applications. This information will facilitate strategic, tactical and operational decision-making related to quality, capacity, inventory and work order management decisions. In addition, the system design will support Tellabs as the company takes on new business, develops new product lines and grows through acquisition.

"Communication is key from the shop floor throughout the organization, and with the implementation of the new systems strategy, we can meet our growth goals and confidently continue our expansion," said John Kohler, vice president of global manufacturing at Tellabs.

Waterstone Consulting has already completed the first project phase, which included the development of the global manufacturing systems strategy. With the second project phase underway, team efforts will concentrate on system design and detailed requirements gathering. The second phase results will support subsequent project phase activities, including software evaluation, selection, and implementation, as well as systems integration.

ABOUT TELLABS, INC.:
Based in Lisle, Ill., Tellabs Inc. designs, manufactures, markets and services voice and data transport and network access systems that are used worldwide by public telephone companies, long-distance carriers, alternate service providers, cellular and other wireless service providers, cable operators, government agencies and businesses. Since 1975, Tellabs has grown to more than 5,000 employees in facilities around the world. As a global supplier to communications providers, Tellabs provides global solutions to customers that have a global perspective and a global business opportunity.

ABOUT WATERSTONE CONSULTING:
Waterstone Consulting is a business consulting and systems integration firm specializing in advanced customer and operations solutions. With expertise in customer management and supply chain management, including ERP implementations, Waterstone Consulting drives client success by solving complex business needs using advanced technology, a straight-talk approach, and an unmatched ability to deliver on promises.

Waterstone's Supply Chain Solutions Group works closely with middle-market and Fortune 500 companies in the manufacturing, distribution, health care and telecommunications industries to develop solutions that deliver increased operational efficiencies, optimized supply chain performance and tightened customer relationships.

Based in Des Plaines, Illinois, Waterstone Consulting has served the needs of mid-market and Fortune 500 companies since 1992. The firm now has more than 70 employees and continues to rapidly grow. Waterstone's client roster includes market leaders such as Caterpillar, Monsanto, Allegiance Healthcare, Motorola and Whirlpool.