PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been selected by Maroc Connect, a Moroccan supplier of fixed and mobile telecommunications services, for the deployment of a next-generation network (NGN). The first phase of this agreement, which is worth more than 25 million euros, foresees a network deployment in five major Moroccan areas. The services will be commercially deployed in early 2007.

The resulting network will help Maroc Connect lower costs, reduce customer churn and generate additional revenue from new services like voice over IP (VoIP) and virtual private networks (VPN).

Under the terms of the agreement, Alcatel is the systems integrator and primary contractor and will assist the operator in the development, operation and maintenance of the network.

"Alcatel is our partner of choice, from its innovative technologies and broad portfolio leadership (WiMAX, NGN, IP and IN) to its extensive experience in integrating and deploying complex solutions", said Mr. Karim Zaz, CEO of Maroc Connect. "Alcatel's solution will bring us a competitive advantage, with a network that offers better overall performance".

"I am glad to see that the major alternative operator in Morocco, with a strategy built on technological leadership, has chosen to partner with Alcatel," said Olivier Picard, President of Alcatel for France, Africa, the Middle East, the South and Central Asia. "This contract further reinforces Alcatel's position as a leader in integrating complex and state-of the art technologies. Furthermore it confirms our major position as a trusted partner with NGN and IP expertise and leadership".

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