Alcatel awarded a Euro 30 million contract with ITPC for a nation-wide backbone in Iraq

Paris, August 2, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been awarded a Euro 30 million contract with Iraqi Telecommunications & Post Corporation (ITPC), the sole fixed operator in Iraq, to deliver a turnkey high capacity nation-wide microwave backbone.

With this turnkey solution, ITPC will be able to handle the ever-growing national traffic caused by continuous increasing demands in the capital and in the country. The network will allow ITPC to provide fixed, mobile and data services very quickly according to the Telco activity development the operator wants to promote. Alcatel will provide a backbone covering 62 sites along three important routes in the country.

The World Bank will finance this contract.

Under the terms of this contract, Alcatel will supply its Alcatel 9600 LSY high-capacity long haul digital microwave radio transmission backbone along with Optical Multi-Service Node (OMSN) systems, PDH multiplex and cross connect, complemented by a powerful end-to-end network management, power supply equipment and towers providing efficient control & routing throughout the network. The robustness, reliability and scalability of the Alcatel 9600 LSY solution make of it the preferred choice for fixed and mobile operators

“We are confident that our long-term partner will deliver such unique network backbone in the agreed time frames in order to have it fully operational by beginning 2008. We have an urge to reconstruct the network in Iraq and we are convinced that Alcatel is the right partner for that,” says H.E. Mohamed S. Mohamed El Hamadany, Iraq Deputy Minister of Communications.

“Taking advantage of our deep knowledge of the Iraqi telecommunications services, we are convinced that this cutting-edge network will contribute to help Iraq to accelerate the reconstruction of their country,” comments Vincenzo Nesci, Vice president of Alcatel’s activities in the Middle East. “This award is a proof of the Alcatel’s commitment to provide communication access to the ”next billion“ people around the world. It will as well reinforce our position in Iraq and in the region in which we have been present for more than 35 years by now.”

With more than 400,000 point-to-point microwave radios installed in more than 150 countries, Alcatel is a technology leader and top player in the wireless transmission market.

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 to their 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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Mark Burnworth

Corporate Media Relations

Alcatel

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