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Alcatel wins Euro 24 million GSM/GPRS expansion contracts with Shanxi Mobile in China


Paris, March 29, 2006 — Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced the signing of two contracts for a total of Euro 24 million with Shanxi Mobile Communication Company Limited (Shanxi MCC), a subsidiary of China Mobile. One of the contracts is the 11th GSM network expansion with this operator; the other is a GSM/GPRS network spares contract. The contracts were won through Alcatel Shanghai Bell, Alcatel’s flagship Chinese company. This further reinforces Alcatel’s position as the No.1 supplier of mobile solutions to Shanxi Mobile.

Under the terms of the network expansion contract, Alcatel will provide and install its industry-leading Evolium® GSM/EDGE solutions including Base Stations (BTS), Base Station Controllers (BSC), Transcoder (TC), Multi-BSS Fast Packet Server (MFS) supporting the Packet Control Unit (PCU) functions, and Operation & Maintenance Center for Radio (OMC-R), in seven major cities in Shanxi province, namely Yuncheng, Luliang, Linfeng, Jincheng, Changzhi, Xinzhou and Jinzhong. In addition, Alcatel will provide GSM/GPRS network spares for existing network maintenance. Completion of the projects will extend mobile services to an additional 3 million subscribers in Shanxi.

Gao Buwen, General Manager of Shanxi Mobile, commented, “We have established stable and long-term relations with Alcatel since 1996. With Alcatel’s state-of-the-art solutions, we are confident to meet the rapidly increasing demand of our customers by expanding the network capacity and delivering high-quality mobile services.”

“We have been a partner of Shanxi Mobile for years and are committed to delivering the best solutions to meet their vigorous technical and financial requirements,” added Marc Rouanne, Chief Operating Officer of Alcatel’s mobile communications activities.

Alcatel is a leader in providing advanced mobile communication solutions in China, a position the company established as early as 1993 when it introduced the country’s first GSM system in Zhejiang Province. To date, Alcatel’s Evolium® solutions have already been installed in 25 Chinese provinces.

About Alcatel
Alcatel provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EURO 13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries.


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