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Alcatel awarded a Euro 30 million contract for Beijing Metro Line 4 Signaling Project


Paris, September 19, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been selected by Beijing MTR Corporation Limited to deploy its industry leading radio-based signaling system for the Metro Line 4. The contract, worth Euro 30 million, was awarded to the consortium led by Alcatel Shanghai Bell, Alcatel’s flagship Chinese company.

The Beijing Metro Line 4 is 28.18 kilometers long, linking 23 underground stations and one above-ground station in total. Under the contract, Alcatel will deploy its advanced SelTrac® S40 radio Communications-Based Train Control (CBTC) solution to this new mass transit line in Beijing.

The CBTC signaling system provides moving-block technology to optimize safe operation of trains with closer separation, as well as fully automated central control. These features allow high capacity for service frequency and efficiency, as well as flexible fleet operations. Operating data is transmitted between train and track-side equipment via an open-standards radio and WLAN system. Compared to conventional signaling systems, Alcatel’s CBTC significantly reduces life-cycle costs.

“Alcatel’s world leading CBTC signaling system will help strengthen our service capacity on train control and passenger satisfaction,” said Mr. Wang ShaoJi, General Manager of Beijing MTR Corporation Limited. “With the new deployment, we can bring improved train operations and services to our passengers.”

“We are honored to be selected to deploy our CBTC solution to the new mass transit line in China’s capital city,’’ said Gerard Dega, President of Alcatel Shanghai Bell. ”Alcatel was already selected to deploy its radio CBTC solution on Shanghai’s metro lines 8 and 6. This contract further reinforces our leading position in CBTC urban metro signaling system provision"

About CBTC
The CBTC system provides an effective means to overcome the fundamental limitations of conventional track-circuit based 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 communications 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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