Alcatel Wins in KazakhstanAlcatel Wins in Kazakhstan

PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA), the world's fastest growing GSM/GPRS/EDGE supplier, announces today that it has signed a Euro 20 million frame agreement with KaR-Tel, Kazakhstan's second largest mobile operator, for the supply of an end-to-end mobile solution. As a result, the mobile operator's transmission capacity will increase to almost one million users, while the capacity of the wireless network is to be doubled.

Leveraging its mobile leadership in the emerging countries, this first mobile contract in Kazakhstan will provide KaR-Tel with an enhanced infrastructure through the use of Alcatel's industry-leading EvoliumTM solution. This solution integrates all technologies, from GSM/GPRS to EDGE and UMTS for a smooth upgrade of existing networks and associated services.

Under the terms of the agreement, Alcatel will supply KaR-Tel with a complete Base Station Subsystem (BSS), an Operation and Maintenance Center and the full EvoliumTM Toolchain. It also includes the extension of the core network sub-system (NSS) and a GPRS Core solution. Furthermore, Alcatel will provide power supply units, microwave links and associated antennas, cables and installation materials.

Alcatel will manage the global project from the first stages of implementation, taking responsibility for installation and integration, network testing and commissioning as well as the associated training of KaR-Tel's staff. The operator plans to start commercial operation in Almaty with the new Alcatel equipment in October 2003. By the end of 2003, further commercial service operating under the brand names 'K-Mobile' and 'Excess' is planned in six of the country's major cities.

"Thanks to Alcatel's complete mobile solutions, KaR-Tel will be able to ensure that K-Mobile and Excess users are offered the highest possible standards of quality " commented Iskander Erimbetov, Chief Executive Officer of KaR-Tel. "We have chosen Alcatel based on its field-proven Evolium? solution and its capability to satisfy every aspect of our network needs, which in turn, enables us to fully meet our customer's growing demand in mobile services".

Marc Rouanne, Chief Operating Officer of Alcatel's Mobile Communications Group added: "In a highly competitive local environment, Alcatel is proud to provide KaR-Tel with an end-to-end turnkey-like mobile solution for Kazakhstan, a fast-growing country with a high potential in Central Asia. This collaboration confirms Alcatel's position as the leading provider of mobile solutions in emerging countries".

Alcatel SA