PARIS and SEOUL -- Alcatel (Paris: CGEP.PA and NYSE: ALA) and KT (Seoul: 0030200 and NYSE: KTC) today announced that they are working together to accelerate the adoption of the new Broadband Wireless solution known as mobile WiMAX (IEEE 802.16e). Within the framework of this agreement, both companies have decided to establish a new center in Seoul that will serve as a venue for conducting interoperability tests of WiBro*/mobile WiMAX (IEEE 802.16e) infrastructure with WiMAX-enabled devices and to showcase WiMAX technology. Both companies will also develop new mobile broadband applications that leverage the potential of mobile WiMAX for the worldwide market.

Alcatel will provide the radio access and core network elements for this WiBro/mobile WiMAX reality center, and will integrate this equipment with a set of application platforms that will be used to test applications with local 3rd party developers. The center will be linked to the KT R&D Center to facilitate testing of the convergence of fixed and mobile broadband applications and to evaluate the experience of end-users. A team of Alcatel and KT's engineering and marketing staff will work together within this framework.

Prior to this cooperation, Alcatel and KT have already taken a number of important steps in developing broadband wireless solutions. Earlier this year, KT announced that it would introduce KT Wireless Broadband services in the first half of 2006 that will enable users to access the Internet with a mobile device at multi-megabit speeds anywhere and at anytime.

Within the scope of their cooperation Alcatel and KT will place particular emphasis on advancing mobile WiMAX worldwide deployment through standardization activities and joint development of the interoperability test profiles that are required to achieve interoperability worldwide. Interoperability testing will therefore be performed with a wide variety of terminal vendors according to the commonly specified profiles.

"KT's Ubiquitous solutions and WiBro are the cornerstones of KT's vision to move 'From GOOD KT to GREAT KT', that will contribute to KT's success as one of the world's leading companies in the 21st century," Hong, Won-pyo, Executive Vice president of Mobile Internet Business Group, KT Corp, declared on the occasion of the signing ceremony which took place today in Seoul. "Leveraging our synergies, I am confident that both companies will be able to stand at the forefront of the forthcoming mobile broadband access revolution."

"KT and Alcatel share a common vision for a user-centric mobile broadband world," noted Marc Rouanne, Chief Operating Officer of Alcatel's mobile communications activities. "Alcatel is convinced that mobile WiMAX has enormous potential and our decision to partner with KT will accelerate the introduction of new mobile broadband services in the global marketplace."

Alcatel

KT Corp.