Algérie Télécom selects Alcatel’s DSL solution to extend broadband services

Paris, May 4, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been selected by Algeria Telecom, the incumbent operator in Algeria, for the further development of its broadband access network. Alcatel will also provide comprehensive business consultancy services to enable the operator to respond to the great demand for DSL subscriptions.

Alcatel’s solution will enable Algeria Telecom to facilitate high-speed Internet access for its subscribers, including those in less dense and remote rural areas. In the framework of this deal, 130,000 lines will be deployed in the third quarter of 2006. With the continuing growth of high-speed Internet connectivity in Algeria, Alcatel will also assist Algeria Telecom in its future network extension projects which target the deployment of an additional 170,000 lines.

Brahim Ouarets, CEO of Algeria Telecom commented: "We selected Alcatel to extend our network with the intention of providing a real public service and support the development of the Algerian economy. This project will allow us to cover the majority of the population who, up to now, did not have access to information and will now be able to enjoy new quality high-speed services".

Olivier Picard, President of Alcatel’s activities in France, Africa, Middle East and the Indian Subcontinent said: "This agreement underlines the traction of our broadband access solution, particularly in the up-to-now underserved regions. Thanks to Alcatel’s integrated solutions, Algeria Telecom will be able to extend its reach and bring broadband access to the majority of the population"

Alcatel will supply Algeria Telecom with its industry-leading 7302 Intelligent Services Access Manager (ISAM), to address the demand for high-speed Internet access services and open up possibilities for broadband applications like IPTV, the 5523 ADSL work station for element management and the 5530 Network Analyzer, Alcatel’s DSL network diagnosis and analysis tool. Alcatel’s solution also includes its Optical Multi-Service Node (OMSN) systems providing a reliable networking solution for broadband aggregation.

Alcatel is global leader in the DSL market and the world leader in optical networking. At the end the of first quarter of 2006, Alcatel had shipped more than 86 million DSL lines worldwide, and its broadband access solutions are prominent in networks of over 180 service providers. More than 90 customers worldwide have deployed the ISAM product family.

About Algérie Telecom
Algérie Télécom is the incumbent operator in Algeria. It is concerned with providing telecommunications services, developing, exploiting and managing the public and private telecommunications networks and to establish, exploit and manage the interconnections with all the networks 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

Mark Burnworth

Corporate Media Relations

Alcatel

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