Alcatel wins a Euro 50 million mobile NGN deployment and GSM network expansion contract with Jilin Mobile in China

Paris, June 19, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has signed a Euro 50 million contract to deploy a Mobile NGN solution for Chinese service provider Jilin Mobile Communications Company (Jilin MCC) and expand the operator’s existing mobile network. The contract was won through Alcatel Shanghai Bell, Alcatel’s flagship Chinese company.

Under the terms of this new contract, Alcatel will deliver its distributed mobile-switching solution. The cornerstone of this mobile NGN solution is the Alcatel 5020 Spatial Atrium Softswitch, a multi-standard mobile call server controlling distributed media gateways. Its distributed architecture results in significant cost efficiency and greater simplicity in the design of Jilin MCC’s network.

Once deployed, Alcatel’s Mobile NGN solution will enable Jilin Mobile to evolve its current network to support future advanced mobile services with one simplified, high-capacity, core network. The solution will also enable the operator to grow its subscriber base while reducing operating expenses.

Alcatel will also expand the operator’s current Alcatel-powered GSM/GPRS mobile network, providing Jilin Mobile with its Alcatel Evolium® multi-standard end-to-end network infrastructure solution. With previous GSM expansion already provided to the operator, Alcatel will have increased Jilin Mobile’s mobile network capacity by 30 % to serve up to 8 million subscribers.

With the completion of all the projects in September 2006, Alcatel’s solution will cover all the cities in Jilin province, including Chuangchun, Jilin, Yanji, Siping, Songyuan, Liaoyun, Baicheng, Baishan and Tonghua.

Alcatel has a long-standing relationship with Jilin Mobile. In 1995 Alcatel deployed the operator’s first GSM network. In 1999, Alcatel upgraded Jilin Mobile’s entire GSM network of 2G to 2.5G with an end-to-end Evolium solution. In addition to Jilin Mobile, Alcatel maintains industry leading mobile solutions in over 25 cities and provinces across the country and is a leader in providing advanced mobile communication solutions in China.

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

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Robin Karvo

Corporate Media Relations

Alcatel

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