Bulgaria’s power utility NEK selects Alcatel to modernize its communications network

Paris, April 12, 2006 - Alcatel (Paris: CGEP. PA and NYSE: ALA) today announced that it has been selected by NEK EAD (Natsionalna Elektricheska Kompania), the Bulgarian national electrical company, to deploy a turnkey, high-speed multiservice network connecting more than 60 sites across the country. Offering the highest levels of reliability, security and efficiency, Alcatel’s end-to-end solution will provide NEK with the remote control of its processes from energy production through to distribution, improved service delivery, as well as the flexibility to introduce new services based on its business requirements.

Scheduled for completion in March 2007, the project, for which Alcatel has overall management responsibility, will be rolled out in three phases. Alcatel’s customer-tailored solution is based on its industry-leading optical, IP and broadband access technologies. With this deployment, NEK will enhance multimedia communications between its sites by leveraging supervisory control and data acquisition (SCADA) and Ethernet-based applications, Local Area Networks/Wide Area Networks and PABXs.

“Alcatel’s solution is ideally suited to the requirements of utility companies. The solution greatly enhances their operational efficiency while reducing their overall costs, allowing them to focus on their core business,” Alexander Avramov, Alcatel’s senior executive in Bulgaria. “We will leverage our technology leadership and vast experience in managing turnkey projects to serve the growing needs of the energy sector in Bulgaria and Eastern Europe.”

The Alcatel solution comprises its data-aware Optical Multi-Service Node (OMSN) systems managed by the Alcatel 1350 management suite including the broadband manager application, and the Alcatel 7250 Service Access Switch (SAS), a feature-rich customer edge device purpose-built to increase service provider revenue and deliver a complete portfolio of voice and data services to enterprises. Alcatel will also deliver its access cross-connect family dedicated to mission-critical vertical market applications and will be in charge of the entire project 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.

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Régine Coqueran

Corporate Media Relations

Alcatel

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