PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) announcedtoday the official launch of Alcatel Shanghai Bell, the first foreign-invested company limited by shares (CLS) in China’s telecommunications sector. This completes the integration of Alcatel’s key operations in China with Shanghai Bell.The new company is well positioned to lead the Chinese and global telecomequipment market from today, as it combines the strengths of Alcatel, theworld’s largest telecom infrastructure provider, and of Shanghai Bell, thetelecom technology leader with the most extensive sales and support networkin China.Alcatel Shanghai Bell is expected to achieve around US$2 billion sales inits first year of operation, as well as more than US$1 billion of exportswithin the first three years. The integration is the result of a Memorandumof Understanding signed in October 2001 between China’s Ministry ofInformation Industry (MII) and Alcatel.The Chairman of Alcatel Shanghai Bell is Yuan Xin, who heads seven othermembers on the Board of Directors. Andrew Young becomes President ofAlcatel Shanghai Bell. Mr Yuan was formerly Chairman of Shanghai Bell whileMr Young was President of Shanghai Bell and an Alcatel veteran of 23 years.Yuan Xin, Chairman of Alcatel Shanghai Bell, said, "Alcatel Shanghai Bellwas established amidst the backdrop of China's further reform and openingand its accession to WTO. The new company has strong support from theChinese government. We will be united and innovative in order to makeAlcatel Shanghai Bell a leading telecom company in China and in the world,further contributing to the development of China's information industry."Alcatel Shanghai Bell Co. Ltd.