Alcatel and Fastweb announce new contract to address the communication requirements of public administration in Italy

Paris, June 30, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) has signed a multi million Euro contract with Fastweb to enhance its network infrastructure in Italy with Alcatel’s optical convergent and cross connect technologies. Fastweb was selected by Consip as provider for fixed voice services and IP connectivity for the Italian public administration. Alcatel’s solution will enable Fastweb to dramatically enhance its network capacity and support the increased traffic loads driven by this new project for central and local public administration.

Alcatel’s convergent Optical Multi-Service Node (OMSN) systems and 1678 Metro Core Connect (MCC) offer a single, integrated platform maximizing Fastweb’s efficiency to provision multiple services to different customer segments. The new equipment will be managed by the existing Alcatel 1350 management suite, a portfolio of applications to manage packet, TDM and wavelength connectivity services.

“Innovation and service differentiation play a pivotal role in Fastweb’s business model, leading us to continuously evolve our IP network,” said Mario Mella, Customer Operations & Technologies Planning Director of Fastweb. “As we share the same commitment in innovation and end-user satisfaction, we strongly believe that Alcatel’s recognized expertise and leadership in optical networking can help us broaden our service offering.”

“Alcatel and Fastweb have been cooperating for many years now, closely working on innovative projects from the early roll-out of broadband services to TV over DSL,” stated Romano Valussi, President of Alcatel’s optical networking activities. “This new award clearly shows the ability of Alcatel to improve efficiency in new fields of operations, such as the new wave of innovative municipality services, through the use of the world-leading convergent optical portfolio.”

About Consip
Consip, a public stock company owned by Italy’s Ministry of the Economy and Finance (MEF), provides consulting services and assistance in innovation, project design, organization and technology to MEF and other Public Administration entities, through MEF’s information systems management and deployment and through the implementation of a rationalization program of public expenditure on products and services.

About FASTWEB
FASTWEB is Italy’s second largest fixed telephony operator and the first player worldwide to develop an all IP network for Triple Play service delivery. It is present in more than 30 Italian cities and towns, connected through a 20,000 km network. FASTWEB’s technology model is unique, combining the extensive use of IP (Internet Protocol) for the integrated management of voice, data and video through packet-switching with its fiber optic and xDSL network. To business users, it offers competitive and advanced services in every market segment: public administration, small and medium enterprises, large corporations, universities and research groups: up to 10 Mbit/s on optical fiber, 6Mbit/s on ADSL, the possibility to raise the access rate up to 20 Mbit/s using ADSL 2 PLUS technology and the transmission rate to 1 Mbit/s, as well as a growing range of high value added services, such as video on demand.

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

Contact Information

Andrea Radic

Corporate Media Relations

Alcatel

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