Russia’s VolgaTelecom deploys Alcatel’s broadband solution to further develop its access network

Paris, November 2, 2005 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced the successful completion of a contract with VolgaTelecom, one of the leading Russian regional operators, for the further development of the operator’s broadband access network in the Privolzhsky Federal Region. Alcatel will assist VolgaTelecom with comprehensive business consultancy services. The expanded network will be operational by the fourth quarter of 2005.

Mr. Omelchenko, general director of VolgaTelecom, commented: "This is already the second contract with Alcatel for the broadband access deployment. By investing in this kind of services we not only satisfy rigorous requirements of the telecommunications market, but also create a good basis for successful triple play implementation".

"The Russian market is experiencing impressive growth of its broadband sector. This contract further confirms our commitment to help local operators bring broadband services to the mass market" said Michel Rahier, President of Alcatel’s fixed communications activities.

Under the terms of the contract, Alcatel provided two VolgaTelecom affiliates with an integrated solution, including its industry-leading Alcatel 7302 Intelligent Services Access Manager (ISAM), which will enable the operator to answer growing demand for high-speed Internet access services and high bandwidth broadband applications (IPTV, Video-on-Demand, Gaming, etc.), the Alcatel 7324 Remote Unit to extend the operator’s service reach to less dense and remote rural areas.

This contract further reinforces Alcatel’s leadership in the global DSL market and IP triple play over broadband access. Since its launch in September 2004, more than 45 customers worldwide have now selected the 7302 ISAM. At the end of the third quarter of this year, Alcatel had shipped more than 70 million DSL lines worldwide, and its broadband access solutions are prominent in networks of over 120 service providers worldwide.

About VolgaTelecom
VolgaTelecom Open Joint-Stock Company is one of the largest Russian service providers offering full set of fixed and telephony, Internet access and data service? The company was founded in 2002 in the process of telco industry restructuring by merging 11 operators of Privolzhskiy Federal Region. "VolgaTelecom" is quoted at the Russian stock exchange (RTS: NNSI / NNSIP; NNSIG / NNSIPG and MMVB: VTEL/VTELP). The company trades 1st level ADRs (VLGAY/NZH).

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 12.3 billion and 56,000 employees in 2004, Alcatel operates in more than 130 countries.

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Aurélie Boutin-Guezennec

Paris HQ Corporate Press Department

Alcatel

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