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China Netcom selects Alcatel’s NGN solution


Paris, August 29, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been selected by Hei Longjiang Netcom, a subsidiary of China Netcom, to deploy the Next Generation Network (NGN) across the Hei Longjiang Province. As the first province-wide fixed network migration of China Netcom, this project further reinforces Alcatel’s leading position as China Netcom’s premier partner in their network transformation program to deliver next generation services. The contract was signed through Alcatel Shanghai Bell, Alcatel’s flagship Chinese company.

Upon completion of the project, expected at the end of September 2006, seven million subscribers of Hei Longjiang Netcom will be able to enjoy a full range of multimedia services such as prepaid phone, color ring back tones, universal personal telecommunications (UPT), free calls from the internet (Web 800), and click-to-dial.

Alcatel will provide Hei Longjiang Netcom with its leading NGN solution, including the Alcatel 5020 Softswitch, Alcatel 7510 Media Gateway and Alcatel 1430 Unified Home Subscriber Server as well as the Alcatel 1540 Multi-service Access Gateway. Alcatel will also provide network design and integration, deployment, maintenance and on-going support for Hei Longjiang Netcom.

Alcatel is a leading NGN solutions provider in China for leading telecom operators, government organizations and enterprises. Prior to this project, Alcatel was selected by China Netcom to deploy a nationwide long-distance NGN trial network covering all 31 provinces of China. Globally, more than 90 NGN projects have been undertaken by Alcatel to date including operators such as BT, Asia Pacific Telecom Group (Taiwan) and Telekom Austria.

About China Netcom
A major state-owned enterprise, China Netcom Corporation Ltd. was co-established by the local telecom companies in 10 provinces, autonomous regions or municipalities directly under the central government, including Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Henan, Shandong, China Netcom (Holding) Co.,Ltd. Other corporations include South-eastern Communications Corp., China Network Communications (holding) Co.,Ltd. Jitong Communications Limited Liability Company and other holding and sharing holding companies.With fixed assets of more than 220 billion RMB, China Netcom Corporation Ltd provides a variety of domestic and international fixed telecom network services and facilities, including wireless local loop, telecom network-based voice, data, image and multimedia communications and information services, as well as corresponding system integration and technical development. It also promotes domestic and overseas investment and financing opportunities, as well as other operations approved by the state.

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:



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