Alcatel and Cinergy MetroNet partner for multi-community fiber-to-the-home deployment

Plano, November 8, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that its fiber-to-the-home (FTTH) solution has been selected by Cinergy MetroNet of Evansville, Indiana. Cinergy MetroNet is engaging in a multi-community deployment to offer high bandwidth triple play (voice, video and data) services to 11 communities throughout Indiana.

According to the contract, Alcatel will supply its FTTH solution, which utilizes passive optical networking (PON) to enable service providers to cost-effectively deliver high revenue, user-centric broadband services today, over a single optical fiber. The scalability of the Alcatel FTTH solution makes it ideal for an initial network rollout and widespread deployment. Service providers can offer any service mix, with increased reliability and lower maintenance costs, which helps maximize profitability.

“Deployment of fiber-to-the-home using Alcatel’s FTTH platform will not only help drive economic development, but will also raise the standard of living in our communities,” said Mike Farmer, Executive Vice President of Cinergy MetroNet. “We chose Alcatel because of their technology leadership in PON, IP-converged triple play services, their commitment to FSAN standards, its reputation for performance and reliability all of which are fundamental for an FTTH network.”

The deployment of Alcatel technology allows the rural communities to leap frog ahead of other more urban counterparts. It will offer ultra-high speed data, voice, and advanced video services where there were few previously available. The network is being funded, in part, through the U.S. Department of Agriculture’s RUS Broadband Loan Program.

“Our relationship with Cinergy MetroNet further demonstrates Alcatel’s continuing commitment to helping accelerate broadband deployments in all market segments,” said Mike Dobbs, Senior Vice President of Alcatel’s access network activities in North America. “With Alcatel’s FTTH solution, Cinergy MetroNet will have the ability to provide customers with the most advanced technology in voice, data and video, backed by the support and expertise that they expect and deserve.”

The Alcatel FTTH is a robust FSAN standards compliant solution that offers best in class performance and reliability and builds on Alcatel’s access technology, innovation and market leadership.

For more information about the Alcatel FTTH solution, www.alcatel.com/fttu

About Cinergy MetroNet
Cinergy MetroNet, Inc., a wholly owned subsidiary of Q-Comm Corporation, provides enhanced broadband services to homes and businesses in rural communities by overbuilding with fiber-optic cable to the premise. Services include both local and long distance telephone, high speed Internet access, and the latest in cable television technology. Cinergy MetroNet enhances broadband infrastructure and improves the quality of life in rural towns across America. Although Cinergy Corp. has licensed the use of its name to Q-Comm, it has no management oversight, control or responsibility over Q-Comm or any of its subsidiaries including Cinergy MetroNet.

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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Charlie Guyer

Corporate Media Relations

Alcatel

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