Alcatel and Samsung partner to develop Mobile TV handsets in the S-Band

Paris and Seoul, October 30, 2006 – Alcatel (Paris: CGEP.PA and NYSE: ALA) and Samsung Electronics (Seoul KSE: 005930 and London GDR: SMSN) today announced that they have signed an agreement to develop mobile handsets compatible with the evolution of the DVB-H standard in the S-Band. This is part of Alcatel’s Unlimited Mobile TV solution.

Alcatel and Samsung will collaborate on interoperability testing in order to deliver a seamless end-to-end solution to operators and a high quality Mobile TV service to end-users. Both companies will support the standardization process of this solution in the DVB Forum undertaken in the DVB-SSP (Satellite Services for Portable devices) Ad-Hoc Group, and join forces to market their combined solution. In a first step, this agreement covers Europe, where the S-band spectrum is available today.

The solution in the S-Band allows complete territory coverage for Mobile TV at the scale of a country or even a continent, including inside buildings. Besides, this solution is compatible with DVB-H in UHF, which also enables the development of dual-mode UHF/ S-Band Mobile TV terminals.

“Samsung values its new cooperation with Alcatel for handsets in the S-Band, as it opens the door to a significant new business opportunity for Samsung in Europe,” stated Kwang Suk Hyun, Senior Vice President of Samsung. “S-Band is a solution of choice in Europe for Mobile TV deployment and Samsung intends to be a major player in this business.”

“We welcome Samsung as a new key stakeholder in the S-Band ecosystem for broadcast Mobile TV, as they enjoy a track record in fast Mobile TV handset development and go-to-market capability,” added Olivier Coste, President of Alcatel’s mobile broadcast activities. “Samsung’s endorsement of our hybrid mobile TV solution in the S-Band also demonstrates the attractiveness of this option for the Mobile TV industry at large.”

About Samsung Electronics
Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2005 parent company sales of USD56.7 billion and net income of USD 7.5 billion. Employing approximately 128,000 people in over 120 offices in 57 countries, the company consists of five main business units: Digital Appliance Business, Digital Media Business, LCD Business, Semiconductor Business and Telecommunication Network Business. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones, and TFT-LCDs. For more information, please visit www.samsung.com

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

About Alcatel’s “Unlimited Mobile TV” solution
The goal of Alcatel’s “Unlimited Mobile TV” solution is to make television available on mobile phones throughout rural and urban areas, including indoors, with a wide range of programming options and excellent image quality, regardless of the number of viewers simultaneously watching the same program. This universal broadcast coverage is possible thanks to the unique combination of a high-power geo-stationary satellite for cost-effective nationwide coverage and a network of low power repeaters, co-located with mobile base stations, to provide urban and indoor coverage. This innovative solution uses an evolution of the DVB-H standard in the 2 GHz band (S-Band), a telecom frequency band between 2.17 and 2.2 GHz associated with satellite usage, which is adjacent to the 3G/UMTS band. This 30MHz band is currently available all across Europe. For more information: www.alcatel.com/mobiletv

Contact press@alcatel.com

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Régine Coqueran

Corporate Media Relations

Alcatel

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