PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has won three contracts worth USD 9.3 million with Lao Telecommunications (LTC), the leading telecommunication service provider in Lao People's Democratic Republic, to provide wireless, optical and broadband solutions for a new phase of network expansion. The deployment of Alcatel's solutions will make advanced communications services accessible to a greater number of Laotians and will further strengthen the Alcatel position as LTC's leading telecommunications solutions provider. These contracts were won through Alcatel Shanghai Bell, Alcatel's flagship Chinese company.

Alcatel's wireless solution for LTC involves the deployment of GSM including EvoliumTM GSM/GPRS radio and core solutions including base stations, base station controllers, and network sub-systems that will expand network capacity to an estimated 360,000 users and bring affordable wireless service to users located in remote areas of the country. The project is expected to be completed in October 2005 and will increase Alcatel's share of the GSM market in Laos to 60%.

Alcatel will also expand LTC's optical backbone and metro networks by implementing its Optical Multi-Service Node (OMSN) systems. The recently launched 1642 Edge Multiplexer Compact will provide LTC with a cost-effective option to enhance connections between the optical backbone network and last-mile metro access points. This will enable local enterprises to benefit from enhanced service delivery and accessibility. Alcatel will also upgrade the existing network management system to ensure reliable and efficient monitoring of the new equipment.

To help Laotian enterprises enhance work efficiency, LTC will use the Alcatel 7325 Advanced Services Access Manager remote unit to deliver broadband access services to local government offices and enterprises in the capital and in provinces across the country. As a result, LTC will become the biggest operator in Lao People's Democratic Republic to offer high-speed Internet access, advanced web-based applications and file downloads.

"Alcatel has been our long-term strategic partner since 1994 and has demonstrated over these years to be a reliable partner with industry-proven solutions, strong expertise and local presence that helps us better serve our customers," said Atip Rittaporn, a member of the Board of Directors of Lao Telecommunications.

"The trust and confidence LTC has in Alcatel demonstrates that our strategy to help operators deliver user-centric broadband services is paying off," said Christian Reinaudo, President of Alcatel's Asia Pacific activities. "We will continue supporting LTC in meeting the changing and growing market demand and play a key role in developing advanced service offerings.

Alcatel