Alcatel wins GPRS network expansion contract with China Mobile in Shanxi province

Paris, September 8, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has signed a GPRS expansion contract with Shanxi Mobile Communication Company Limited (Shanxi MCC), a subsidiary of China Mobile. This network expansion project further reinforces Alcatel’s position as the operator’s leading supplier of GPRS core network solutions. The contract was won through Alcatel Shanghai Bell, Alcatel’s Chinese flagship company.

Once the project is complete, Alcatel will enable Shanxi MCC to provide advanced mobile communications services to an additional 6 million subscribers in Shanxi province. The Alcatel solution consists of Alcatel’s Evolium® intelligent GPRS Gateway Support Node (iGGSN) and Evolium® Serving GPRS Support Node (SGSN).

The iGGSN will benefit Shanxi MCC by enabling the service provider to charge its subscribers based on the type of content they access and the service value they derive. The SGSN will enable Shanxi MCC to offer its customer’s enhanced mobile voice and data services, such as MMS, web browsing and video streaming.

“With the increasing demand for emerging mobile voice and data services, we have to ensure the best solution in place to meet the needs of our customers today and tomorrow, including billing according to the content accessed,” said Gao Buwen, General Manager of Shanxi Mobile. “Thanks to Alcatel’s state-of-the-art solutions and high-quality services, we can continue satisfying our customers.”

“We enjoy a relationship with Shanxi MCC that extends over 10 years,” noted Marc Rouanne, President of Alcatel’s mobile communications activities. “What has sustained this relationship over the long-term is our ability to deliver solutions that enable Shanxi MCC to provide innovative services to its customers. This GPRS core network solution is a prime example of such a solution,” he added.

Alcatel is a leader in providing advanced mobile communication solutions in China, a position the company established as early as 1993 when it introduced the country’s first GSM system in Zhejiang Province. To date, Alcatel’s Evolium® solutions have already been installed in 25 Chinese provinces.

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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Stéphane Lapeyrade

Corporate Media Relations

Alcatel

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