Alcatel and Avnet join forces to distribute IP networking solutions in Australia

Sydney (Australia), July 10, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) and Avnet Partner Solutions, Australia, a leading value-added distributor and a division of Avnet, Inc. (NYSE: AVT) today announced a formal distribution agreement to deliver Alcatel IP networking solutions across Australia. Under the agreement, Avnet will distribute the entire series of Alcatel OmniSwitch, OmniStack and OmniAccess products to systems integrators, outsourcers and value-added resellers in Australia.

Mike Stein, country manager for Alcatel enterprise activities, said “The partnership brings together Alcatel’s industry leading IP communications solutions with Avnet’s expertise and efficient operations in the Australian networking market.”

“Alcatel’s best-of-breed technology combined with Avnet’s operational excellence will deliver even more value to both existing and new resellers in Australia. Under this new arrangement, Alcatel partners and their customers will benefit from reduced delivery times for new products and from having more in-country stock, said Stein. ”In the future we are looking at ways to improve spares and advance replacement parts availability for distribution" added Stein.

Colin McKenna, Vice President of Avnet Partner Solutions, Australia, commented, “We are excited about the relationship with Alcatel and their commitment to the enterprise networking market. Alcatel’s advanced technology in the areas of LAN switching, wireless LAN and network security provides resellers, integrators and IT professionals with highly robust and reliable networking solutions at highly competitive costs.”

Colin McKenna added “Key priorities for Avnet and Alcatel will be to explain the benefits of the new relationship to existing channel partners and add new resellers and integrators to the roster. To achieve this, Avnet will be undertaking a significant marketing campaign to sign-up new resellers and systems integrators, to promote Alcatel solutions within Avnet’s existing partner network and to build upon Alcatel’s existing network of partners.”

About Alcatel Enterprise solutions
With more than 500,000 customers, Alcatel is a leading provider of communication solutions to small, medium, and large enterprises, as well as to public sector institutions worldwide. Alcatel’s enterprise portfolio provides business communication applications, including Unified Communications and Contact Centers, an advanced IP Telephony offering, and IP Networking products. Alcatel’s enterprise solutions deliver an enhanced competitive edge to businesses of all sizes by increasing customer satisfaction, employee productivity, and operational efficiencies.

Contact Information

Matt Bostwick

External Communications Manager

Alcatel

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