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Optical/IP

Alcatel Expanding Optronics Capacity

PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced its intention to convert its GSM Mobile Terminals manufacturing plant in Illkirch, France, where 830 employees are located, into a factory for optical interface and amplifier subsystems for Alcatel Optronics (Paris: CGO ; Nasdaq ALAO ) activities.

This announcement is in line with the strong demand for optical sub-systems, generating needs for additional capacity. On the other hand, the lower demand for GSM mobile terminals allows Alcatel to concentrate its manufacturing capacities on one single site.

To manage the growing demand for optical components caused by the explosion of the Internet traffic, Alcatel Optronics will have increased its production capacities by a factor of four over 18 months (July 2000 to December 2001). The company is particularly focusing on increasing the production of integrated optical subsystems. Alcatel Optronics has retained the Illkirch site because these product lines require expertise in electronics and product assembly similar to the technical know-how developed through Alcatel's GSM phones production.

Alcatel Optronics
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