Saudi Telecom awards Alcatel the largest contract for DSL in the Middle East

Paris, December 5, 20005 - Alcatel (Paris: CGEP.PA and NYSE: ALA) has been awarded a 88 Million Saudi Riyal equivalent (15 Million EURO) contract by Saudi Telecom (STC) the largest ADSL telecom operator in the Middle East. Within this agreement, 180,000 ports shall be made available using new technologies for digital lines (IP DSLAM) to be executed all over the Kingdom within a period of 12 months.

Alcatel will supply Saudi Telecom Company with its industry-leading Intelligent Services Access Manager (ISAM) product family that will enable STC to meet the growing customer demand for high speed internet access services, in accordance with state-of-art technology for digital lines (IP-DSLAM), as well as high quality broadband applications like IPTV.

“Starting the usage of the new IP DSLAM technology in the Saudi Telecom network, it is possible to offer triple play services to our subscribers, thus enhancing broadband services development, as part of the Company’s effort to present the most modern and high quality of services to its clients all over the Kingdom” said Eng. Khaled Al-Mulhem, President of STC. We are also totally convinced that Alcatel’s worldwide leadership in deploying broadband services, their capabilities for large-scale deployment, and their adaptability to local market conditions will be of great support to STC in addition to the distinguished and continuous support services provided to STC in this field", he added.

Michel Rahier, president of Alcatel’s fixed communications activities, commented: "The Middle East is a key area for providing state-of-art broadband services, with large increases in the number of broadband subscribers, and a clear path towards triple play. Within this contract execution, STC recognizes Alcatel as a strategic partner that guarantees the combination of a global competence and a significant broadband experience worldwide.

Since its launch in September 2004, more than 45 customers worldwide have now selected the ISAM technology as the cornerstone for their access network transformation. At the end the of third quarter of 2005, Alcatel has shipped more than 74 million DSL lines worldwide, and its broadband access solutions are prominent in networks of over 120 service providers. This confirms Alcatel’s worldwide leadership.

About Saudi Telecom (STC)
Saudi Telecom Company (STC) is a customer-focused provider of Telecommunications products in Saudi Arabia. STC is working to build the Saudi Telecom brand into the Saudi-customers’ first choice in all areas of telecommunications. Saudi Telecom’s work today is Building a Better Tomorrow for customers. For more information, visit STC on the Internet: http://www.stc.com.sa

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 12.3 billion and 56,000 employees in 2004, Alcatel operates in more than 130 countries.

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Aurélie Boutin-Guezennec

Alcatel

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