Alcatel strengthens #2 position in MSWAN market according to Dell’Oro

Paris, December 20, 2005 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that according to research from Dell’Oro, Alcatel reinforced its #2 position in the worldwide Multiservice Wide Area Network (MSWAN) market during the third quarter of 2005, garnering 26.3% of the market following a 3% increase in quarter over quarter revenue.

Alcatel experienced a robust third quarter with particular strength in the MSWAN business for both fixed and mobile aggregation.

As operators move to new IP/MPLS services, Alcatel’s multiservice IP portfolio becomes more critical since it enables a smooth transition between existing and new services. More than one-third of the Alcatel 7670 Routing Switch Platform (RSP) customers have turned on its IP/MPLS features, allowing those operators to mix traditional ATM, frame relay and TDM with new Ethernet and IP/MPLS services. As a result, those operators protect their existing investment as they simultaneously introduce advanced offerings from the same platform.

“Our strength in MSWAN this past quarter reflects Alcatel’s continued investment in the portfolio to ensure it meets the unique needs of our customers,” said Basil Alwan, president of Alcatel’s IP activities. “Our relationships with both fixed and mobile operators ensure we have a solid understanding of their specific challenges as they make the transition to an IP/MPLS-based network while still reaping the benefits of their installed MSWAN infrastructure.”

To date, more than 450 service providers around the world have selected Alcatel’s MSWAN portfolio including AT&T, BT, Korea Telecom and mobile operators SFR, QTel and Proximus.

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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Mark Burnworth

Alcatel

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