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Shanghai Government selects Alcatel to deploy its CBTC signaling system for the new Shanghai subway line


Paris, July 20, 2006 – Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been selected by the Shanghai Government to deploy its advanced radio-based signaling system for the city’s new N°6 metro line. This deployment will allow Shanghai Metro to operate trains with greater frequency and provide passengers with safer and more efficient services. Shanghai Shentong Group Co., Ltd awarded the contract, valued at Euro 30 million, to the consortium led by Alcatel Shanghai Bell, Alcatel’s flagship Chinese company. Shanghai metro line N°6 Rail is 33 kilometres long.

Under the contract, Alcatel will provide its world leading SelTrac® radio Communications-Based Train Control (CBTC) solution to this newest mass transit line in Shanghai.

The SelTrac® radio solution includes a wireless data communication system linking the track network and the trains. This technology removes nearly all track embedded equipment and therefore drastically simplifies maintenance operations. In addition, the bandwidth provides capacity to have both train control and extended on-board passenger services, such as video surveillance, operating over the same network backbone.

Prior to this win, Alcatel was selected to deploy its radio Communications-Based Train Control system for the Shanghai N°8 metro line, which is the first application of its kind in mainland China.

About CBTC
The CBTC system provides an effective means to overcome the fundamental limitations of conventional track-circuit based system systems. The CBTC solution enables trains to operate with much closer timings while ensuring safe train separation and more flexible train control. Not only can CBTC systems determine the position of trains on the system independently of the track circuits, but they also offer bidirectional train/wayside communication that enhance train operation and management.

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:

About Alcatel’s Railway Solutions
To meet the challenge of increased mobility, Alcatel offers a host of advanced railway solutions that ensure safe, reliable and comfortable transportation of passengers and freight through the network. Drawing on wide international experience in all aspects of transport automation and network integration and services, Alcatel is a leading worldwide supplier for signaling - train control, train routing, control centers - and integrated communications solutions to carry and distribute voice, data and video to and from all sites of urban and main line rail. Whether enhancing, renewing or building new lines, Alcatel is an ideal partner to address the operational needs of main line and urban rail operators.



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