PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been awarded a contract by Mobitel, a subsidiary of VimpelCom (NYSE: VIP), a provider of telecommunication services operating under the "Beeline" brand, to deploy a new mobile network in Georgia.

The project will consist of covering the whole territory of Georgia with a new mobile GSM/GPRS/EDGE network, while preparing for the 3G/UMTS and/or WiMAX multi-standard introduction. Once the project will be completed Alcatel’s mobile solutions will enable Mobitel to provide advanced mobile communications services to subscribers in Georgia.

Under the terms of this contract, Alcatel will deliver its industry leading Alcatel Evolium™ GSM/GPRS/EDGE end-to-end solutions, including Base Station Sub-systems (BSS), NGN-based Mobile Switching Centers (NSS) as well as operation and maintenance support services. Alcatel will also deliver a high availability IP/MPLS network based on the Alcatel 7710 Service Router.

"We consider Georgia as one of the strategic mobile markets and hope to win a leading position in this market. To reach this objective, VimpelCom will do everything required to commercially launch a new network within a short time frame," said Sergey Avdeev, executive vice-president and chief technical officer of VimpelCom. "I am confident that Alcatel’s rich experience in wireless technologies will enable us to achieve this challenging plan."

"This contract not only gives Alcatel a solid footprint in the mobile market in Georgia but it also expands our long term successful cooperation with VimpelCom and our presence in the overall CIS market," said Johan Vanderplaetse, vice-president for Alcatel activities in the Commonwealth of Independent States (CIS). "The CIS High Growth Economies have proved to be a dynamic region for mobile communication and we are committed to enabling Mobitel to become a stronger competitive operator in Georgia by introducing innovative services, whilst ensuring long-term investment protection."

Alcatel is one of the leading suppliers in providing advanced mobile communication solutions in Russia and in the CIS, a position the company established in 1994 when it introduced the first Russian GSM network in the city of Nizhniy Novgorod.

Alcatel is a leader in high growth markets with an 18% mobile market share. According to Synergy Research Group, Alcatel was #2 in the Services Edge Router category in Q2 2006, with 19% market share, following five consecutive quarters of market share gain.

Alcatel (NYSE: ALA; Paris: CGEP:PA)