PARIS -- Alcatel (Paris : CGEP.PA and NYSE : ALA) today announced that it hassigned a multi-million US dollar contract to provide a fully integrated communication solution toequip, before end of 2006, an onshore gas plant and three offshore platforms of the South Pars gasfield in Iran.

Alcatel will design, integrate, supply, install and commission all communication systems required forphases 6, 7 and 8 of the South Pars gas development field, which should help Iran to establish itselfas a major world gas producer. This solution will enable to control the overall network and operatethe unmanned offshore platforms from the on-shore gas plant.

Alcatel’s communication solution includes a terrestrial and submarine cable network and associatedSDH optical multi-service systems interconnected to radio and fixed communication systems, safetyand security systems as well as a centralized network management platform. This project alsorequires specific engineering skills and strong project management capabilities.

The contract has been awarded by the joint-venture TIJD - on behalf of the joint venture ToyoEngineering Corp, Industrial Development and Renovation Organization, JCG Corp. and DaelimIndustrial on behalf of Petropars Ltd, the main contractor of Pars Oil and Gas Co, a subsidiary ofthe National Iranian Oil Company (NIOC) and the operator of the field.

Tomoharu Horiwaki, Toyo Engineering Corporation, Project Manager of Engineering Office forSouth Pars 6, 7 and 8 project, said, “We chose Alcatel as our partner because of its experience inundertaking complex integration projects. We also believe that their expertise in thetelecommunication field will help us better meet our customer’s requirements. Alcatel’s contractingexperience and its understanding of the project’s risks were also key factors in our decision”.

Frederic Rose, President of Alcatel’s integration and services activities, added: “Following similarsuccess in the region, this complex project is a key reference in a demanding market such as Iran. Itconfirms our strong capability, as a global communication solutions provider, to integrate multitechnologysystems and provide all needed services for the communication demand of ourcustomers in the oil and gas market.”

Alcatel SA