PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announces acontinuation of its strategic partnership with BTC. Last summer, Alcatel and the BulgarianTelecommunications Company signed a contract for implementing enhancements to the capacityof BTC’s existing backbone network to support the rapid and efficient delivery of high-capacitybroadband services, such as the transmission and broadcasting of TV programs.

In the beginning of this year, BTC will deploy Alcatel’s SDH Optical Multi-Service Node (OMSN)systems which can be equipped with Integrated Service Adapter (ISA) cards. Providing BTC with acost-effective multi-service provisioning platform, the OMSN equipment enables operators likeBTC to achieve the optimal balance between new competitive service offerings and traditionalrevenue-generating services, such as Ethernet Virtual LAN.

“Alcatel’s optical SDH multi-service systems will support BTC with the technological flexibility itrequires for delivering cost-effective bandwidth connections throughout Bulgaria,“ statedAlexander Avramov, Country Senior Officer of Alcatel in Bulgaria. “As data services re-shape thenature of telecommunications, Alcatel has a feature-rich product offering to deliver customizedsolutions that secure a critical competitive edge for its customers.”

In a separate release:

Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced it has woncontracts worth almost 20 million Euros from TELEKOMUNIKACJA POLSKA (TP), to supply new highavailability management systems in order to centralize and monitor management functions forAlcatel equipment across TP’s nationwide network, which serves almost 11 million subscribers. Byensuring optimal management of existing network resources, provisioning services, and reducingoperating expenses, the new management systems will improve network performance and qualityand provide TP with a rapid return on investment.

TP will use the Alcatel 1360 Switch Management Center (SMC) to enable centralized managementand network supervision of more than 100 Alcatel 1000 S12 digital exchanges from the TP S12supervision switching centers located in Warsaw and Poznan. The new system will be anenhancement of the existing Alcatel-supplied management solution, which currently serves theWarsaw area. The Alcatel 1360 SMC supports open interfaces to communicate with higher-levelsupervision systems, which further automates the management and provisioning processes andoptimizes performance – ultimately improving time to profit.

TP will also implement the Alcatel 1350 management suite in its transmission network managementcenters in Warsaw and Katowice to centralize management of approximately 30 regionaltransmission networks. Scheduled for completion by the end of 2005, this deployment will enable TPto monitor its existing transmission networks and ensure network quality and efficiency. The Alcatel1350 management suite enables the provisioning of a wide range of services over optical networks,including voice and data - Ethernet, IP, ATM and a range of protocols used for Storage AreaNetworking.

“Improving network performance and maintaining operational efficiency is pivotal to the delivery ofquality service to our customers,” said Barbara Gorska, TP spokesperson. “Alcatel is a recognizedleader in network management who’s high availability, centralized management systems will enableus to minimize our operational expenses while increasing the functionality of the network to supportadvanced applications.”

“As the largest operator in Poland with blanket coverage for the entire country and a significantsubscriber base, TELEKOMUNIKACJA POLSKA is always looking for ways to streamline operationsand reduce costs,” said Michel Rahier, Chief Operating Officer of Alcatel’s fixed communicationsactivities. “The Alcatel 1350 management suite and Alcatel 1360 SMC are both flexible and openmanagement solutions that automate the management process so TP can effectively operate andsupervise their switching and transmission infrastructure from a centralized, remote location whichreduces operational expenses.”

Alcatel SA

Bulgarian Telecommunications Company Plc.Telekomunikacja Polska SA