Alcatel and T-Com strengthen cooperation in transport network

Paris, May 10, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced the two-year renewal of its existing supply agreement with T-Com, the broadband/fixed line business division of Deutsche Telekom, for multi-service transport networks. T-Com is already using Alcatel’s networking solutions to speed delivery of advanced Fast Ethernet services for enterprise customers, along with broadband services for residential users.

Under the terms of the contract, Alcatel will continue to supply its:

* Optical Multi-Service Node (OMSN) systems providing business customers with carrier-class Ethernet services - such as Virtual Private Networks (VPN) - and streamlining broadband aggregation and distribution.
* 1678 Metro Core Connect (MCC), which helps service providers develop their central offices in both the metro and the core further, while simplifying operations and improving network efficiency. The Alcatel 1678 MCC is a flexible and cost-effective solution for fixed-line and mobile network operators, as well as Internet service providers. Traffic streams from different services and using a variety of protocols can now be bundled and consolidated more efficiently for onward transport in national and international core networks.


In the further expansion of the SDH network, Alcatel will also upgrade the existing 1350 management suite to monitor the new equipment and services that the network enhancements will support.

“We are pleased to continue our long-lasting cooperation with T-Com to help enhance its service delivery options, while guaranteeing the highest reliability and quality assurance,” said Romano Valussi, President of Alcatel’s optical networking activities. “Our advanced optical networking solutions enable T-Com to offer services ranging from best effort to premium quality, all from the same infrastructure.”

The world leader in optical networking for the fifth year running with 16% markets share in 2005*, Alcatel is spearheading the transformation of optical transport to IP/Ethernet. Alcatel’s end-to-end optical portfolio supports a broad range of services and applications such as triple play, Gigabit Ethernet connectivity, Virtual Private Networks and 3G mobile backhauling. More than 700 customers in over 150 countries have deployed Alcatel’s optical networking solutions for fixed and mobile applications, as well as in the transportation, power utility and research/education markets.

*Source: Ovum-RHK

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. For more information, visit Alcatel on the Internet: http://www.alcatel.com

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Régine Coqueran

Corporate Media Relations

Alcatel

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