PARIS -- 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 forth 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 Integrated 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.

Alcatel