Alcatel awarded Euro 25 million contract for driverless train control system in Vancouver

Paris, February 20, 2006 — Alcatel (Paris: CGEP.PA and NYSE: ALA) announced it has been awarded a Euro 25 million communications-based train control (CBTC) contract by SNC Lavalin Inc., in Vancouver, B.C., Canada. The CBTC system is part of Vancouver’s newest rapid transit line.

The CBTC system will provide automatic train control functions for the almost 19 km line that is scheduled for revenue service late 2009. The “Canada Line” will run between Richmond, the Airport and Vancouver providing a high capacity link in a corridor with one-third of the region’s jobs and 20% of its population. The new line will connect with transit systems serving other parts of the region and will significantly expand the transit network. Travel times are under 25 minutes Waterfront Station to Vancouver International Airport (YVR) and under 25 minutes Waterfront Station to Richmond Centre.

The funding agencies and Canada Line Rapid Transit Inc., the Greater Vancouver Transportation Authority subsidiary responsible for implementing the project, selected InTransitBC, a limited partnership between SNC Lavalin Inc. and its equity partners BC Investment Management Corporation and Caisse de dépôt et placement du Québec, to design, build, operate and maintain the line for 35 years.

“Alcatel’s CBTC solution is a proven driverless system that has been demonstrated to be both reliable and safe on the Vancouver SkyTrain system and on other systems around the world,” said SNC Lavalin’s James Burke, Senior Vice President and General Manager Transportation Division.

“We are again proud to be involved in greater Vancouver’s development of rapid transit and pleased to be working with SNC Lavalin. Since 1986 Alcatel has shared the success of driverless train control operation on the SkyTrain Expo and Millennium Lines. With our advanced train control system applied to the Canada Line, we expect similar success. Our customer, SNC Lavalin Inc., and the passengers of the Canada Line are assured of a reliable, environmentally-friendly system,” said Olivier Perraud, Senior Vice President of Alcatel’s urban rail activities.

About SNC Lavalin
IncSNC-Lavalin (TSX: SNC) is one of the leading groups of engineering and construction companies in the world, a global leader in the ownership of infrastructure, and in operations and maintenance services. The SNC-Lavalin companies have offices across Canada and in 30 other countries around the world and are currently working in some 100 countries. www.snclavalin.com

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.


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.

Contact Information

Régine Coqueran

Alcatel

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