ADC Updates Financial Outlook for Fiscal Year 2008

MINNEAPOLIS--(Business Wire)--
ADC (NASDAQ: ADCT)(www.adc.com) today announced an update to its
financial outlook for its fiscal year 2008 ending October 31, 2008.
These updated estimates are subject to the completion of ADC's actual
financial results for the fiscal 2008 third quarter and year. ADC is
scheduled to announce financial results on September 4, 2008 for its
third quarter ending August 1, 2008.

At this time, ADC currently expects sales from continuing
operations for fiscal 2008 to be in the range of $1.500-$1.520
billion. Previous annual guidance provided on June 4, 2008 was that
ADC's fiscal 2008 sales would be in the range of $1.520-$1.540
billion. ADC now expects to have year-over-year sales growth for
fiscal year 2008 of 13%-15%.

Compared to previous fiscal 2008 sales guidance, the updated
financial outlook primarily reflects lower sales of copper and fiber
connectivity products in the United States resulting mainly from
customers' recent budget reviews and ordering patterns, as well as the
resulting effects on original equipment manufacturers' demand for ADC
products.

"We remain firmly committed to managing our business strategically
for the long term, but the inherent short-lead time nature of our
business sometimes results in quarter-to-quarter market-related
movements, up or down, in our sales expectations," said Robert E.
Switz, president and CEO of ADC. "Current industry conditions are
driving a change in our financial outlook for this fiscal year, but we
see no change in our customers' long-term commitment to investing in
the network infrastructure required to deliver broadband services to
business, residential and mobile subscribers. ADC is well positioned
to continue supplying products and services to these customers'
strategic builds in the high-growth segments of fiber-based and
wireless communications networks."

ADC currently expects its third quarter 2008 sales will be 3-5%
lower than the second quarter of 2008 and expects its fourth quarter
2008 sales to be around the third-quarter level. Due to the change in
sales volume and product mix, ADC's gross margins in 2008 are now
expected to be around 34% for the second half and around 35% for the
full year compared to previous guidance of 36% for the full year.

Based on these current annual sales and gross margin estimates,
subject to sales mix, other factors and an assumed effective income
tax rate of around 10%, ADC now estimates that GAAP diluted EPS from
continuing operations in 2008 will be in the range of $0.18 to $0.26
which includes estimated charges (benefits), net of tax, listed in the
below table. ADC's previous annual guidance provided on June 4, 2008
for 2008 GAAP diluted EPS from continuing operations was in the range
of $0.31 to $0.39.

-0-
*T
2008
Estimate
------------
Estimated GAAP EPS from continuing operations -
diluted $ 0.18-0.26(1)
LGC Wireless purchase accounting adjustment in cost
of sales $ 0.03
Amortization of purchased intangibles $ 0.29
Stock-option compensation expense in selling and
administration $ 0.06
Restructuring and operating impairment charges $ 0.02
Approximately $68 million noncash, nonoperating
impairment of available-for-sale securities for the
six months ended May 2, 2008, subject to further
evaluation throughout 2008 $ 0.54
*T

(1) Excludes potential future restructuring or impairment charges,
any incremental purchased intangible amortization, and certain
non-operating gains/losses, as well as further adjustments of the
deferred tax asset valuation reserve, of which the amounts are
uncertain at this time. The calculation of GAAP diluted EPS from
continuing operations includes the if-converted method, which assumes
that ADC's convertible notes are converted to common stock, if such
treatment is dilutive.

September 4 Conference Call and Webcast for Third Fiscal Quarter
2008 Financial Results

ADC expects to discuss its third fiscal quarter 2008 financial
results and current outlook for fiscal year 2008 on a conference call
and webcast scheduled on September 4, 2008 at 5:00 p.m. Eastern time.
The conference call can be accessed by domestic callers at (800)
399-7506 and by international callers at (706) 634-2489 or on the
Internet at www.adc.com/investor, by clicking on Webcasts. The replay
of the September 4 call can be accessed until 11:45 p.m. Eastern time
on September 11, 2008 by domestic callers at (800) 642-1687 and by
international callers at (706) 645-9291 (conference ID number is
57110643) or on the Internet at www.adc.com/investor, by clicking on
Webcasts.

About ADC

ADC provides the connections for wireline, wireless, cable,
broadcast, and enterprise networks around the world. ADC's innovative
network infrastructure equipment and professional services enable
high-speed Internet, data, video, and voice services to residential,
business and mobile subscribers. ADC (NASDAQ: ADCT) has sales into
more than 130 countries. Learn more about ADC at www.adc.com.

Cautionary Statement Regarding Forward Looking Information

All forward-looking statements contained herein reflect
management's current expectations or beliefs as of the date of such
statements and are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. ADC cautions that
any forward-looking statements made by us in this announcement are
qualified by important factors that could cause actual results to
differ materially from those in the forward-looking statements.
Forward-looking statements represent our expectations or beliefs
concerning future events, including but not limited to the following:
any statements regarding future sales; profit percentages; earnings
per share and other results of operations; and expectations or beliefs
regarding the marketplace in which we operate. We caution that any
forward-looking statements made by us in this announcement are
qualified by important factors that could cause actual results to
differ materially from those in the forward-looking statements. These
factors include, without limitation: the demand for equipment by
telecommunication service providers, from which a majority of our
sales are derived; our ability to operate our business to achieve,
maintain and grow operating profitability; macroeconomic factors that
influence the demand for telecommunications services and the
consequent demand for communications equipment; consolidation among
our customers, competitors or vendors which could cause disruption in
our customer relationships or displacement of us as an equipment
vendor to the surviving entity in a customer consolidation; our
ability to keep pace with rapid technological change in our industry;
our ability to make the proper strategic choices with respect to
product line acquisitions or divestitures; our ability to integrate
the operations of any acquired businesses with our own operations;
increased competition within our industry and increased pricing
pressure from our customers; our dependence on relatively few
customers for a majority of our sales as well as potential sales
growth in market segments we presently feel have the greatest growth
potential; fluctuations in our operating results from
quarter-to-quarter, which are influenced by many factors outside of
our control, including variations in demand for particular products in
our portfolio that have varying profit margins; the impact of
regulatory changes on our customers' willingness to make capital
expenditures for our equipment and services; financial problems, work
interruptions in operations or other difficulties faced by some of our
customers or vendors, which can influence future sales to these
customers as well as our ability to collect amounts due us or obtain
necessary materials and components; economic and regulatory conditions
both in the United States and outside of the United States, as a
significant portion of our sales come from non-U.S. jurisdictions; our
ability to protect our intellectual property rights and defend against
infringement claims made by other parties; possible limitations on our
ability to raise additional capital if required, either due to
unfavorable market conditions or lack of investor demand; potential
adverse financial impacts resulting from declines in the fair value
and liquidity of auction-rate securities we presently hold; our
ability to attract and retain qualified employees in a competitive
environment; potential liabilities that could arise if there are
design or manufacturing defects with respect to any of our products;
our ability to obtain raw materials and components and the prices of
those materials and components which could be subject to volatility,
and our dependence on contract manufacturers to make certain of our
products; changes in interest rates, foreign currency exchange rates
and equity securities prices, all of which will impact our operating
results; political, economic, and legal uncertainties related to doing
business in China; our ability to successfully defend or
satisfactorily settle any pending litigation or litigation that may
arise; fluctuations in the telecommunications market and other risks
and uncertainties including those identified in the section captioned
Risk Factors in Item 1A of ADC's Annual Report on Form 10-K for the
year ended October 31, 2007 and as may be updated in Item 1A of ADC's
subsequent Quarterly Reports on Form 10-Q or other filings we make
with the SEC. ADC disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

ADC
Investor Relations:
Mark Borman, 952-917-0590
or
Public Relations:
Mike Smith, 952-917-0306

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