Alcatel Wins Digital Video Deals

DALLAS -- Alcatel (NYSE: ALA), the world leader in broadband access solutions, has been selected by Video Networks Limited (VNL) to provide the video-enabled broadband access solution for VNL's next generation HomeChoice service. The HomeChoice service delivers high-value, broadband entertainment services over Digital Subscriber Line (DSL), including broadcast and pay TV services, video on demand and broadband Internet services. VNL will use the Alcatel solution to deliver such high-speed services to more than one million London homes beginning in the second quarter of 2004.

In a deal worth more than 15 million euros, Alcatel will provide VNL with equipment and support services enabling VNL to provide a full suite of broadband entertainment services. Equipment will include the Alcatel 7301 Advanced Services Access Manager (ASAM) and the Alcatel 5523 New Generation Asynchronous DSL Work Station (NGAWS) Element Management System.

"UK consumers are demanding an increasingly sophisticated range of quality entertainment services. VNL has developed a unique portfolio of entertainment and communications services that require us to deploy a state-of-the-art broadband network," said Roger Lynch, chairman and chief executive officer of VNL. "As a leader in DSL development, Alcatel has the experience necessary to help us roll out each new wave in broadband technology. We believe the multimedia capabilities and high capacity architecture of the Alcatel 7301 ASAM provide the best infrastructure for rolling out new higher bandwidth services, such as broadcast TV, broadband Internet, and video on demand services over DSL. A combination of Alcatel's leading broadband technology and VNL's unique service offering will provide the London market with a broadband entertainment proposition that is unrivaled anywhere in the world."

"Alcatel continues to develop DSL technology in anticipation of dramatic growth in broadband subscribers and demand for bandwidth intensive services," said Michel Rahier, president of Alcatel's fixed network activities. "Alcatel is using its extensive experience in access to help VNL deliver the most advanced broadband entertainment services on the market."

Alcatel holds 37.6 percent share of the global DSL market based on August 2003 data from industry analyst Dell'Oro Group. Alcatel has shipped more than 29.4 million DSL lines and its broadband access solutions are prominent in the networks of more than 70 of the world's largest carriers.

In a separate release:

NDS Group plc, a London-based news corporation company and a leading provider of technology solutions for digital pay TV, and Alcatel (NYSE: ALA), the world leader in broadband access networks, today announced an agreement to integrate and promote the NDS Synamedia secure broadband architecture with the Alcatel Open Media Suite products for broadband entertainment solutions. This agreement capitalizes on the strengths of Alcatel's position as the world's largest supplier of communications network equipment to the broadband communication market with NDS's leadership in the digital TV technology market.

The agreement provides a single integrated solution for broadband Internet Protocol (IP) network operators by integrating the Alcatel Open Media Suite - including video on demand, broadcast TV and other broadband applications – with Synamedia, NDS's secure broadband entertainment system. The agreement provides content protection by integrating the NDS Synamedia secure architecture with Alcatel's Open Media Suite products.

A first example of the success of the co-operation between the two companies is an order placed by CYTA (Cyprus Telecommunications Authority) for a broadband entertainment system to be delivered by NDS and Alcatel. CYTA concluded a successful trial and is now targeting the beginning of 2004 to deploy broadcast and video on demand services to TV via set top boxes.

"Telecommunication service providers and content owners are extremely cautious when it comes to delivering highly valuable content over broadband networks. We are convinced that bringing together the leading application software suite with the number one content protection system offers a unique set of security features to our respective customers," said Alan Mottram, president of Alcatel's fixed solutions activities.

"The agreement is a great example of market leading companies from the digital TV market and the telecommunications market working together to deliver a total broadband IP entertainment solution," said Nigel Smith, vice president, broadband Internet, NDS. "Our proven content protection fulfils content owners' demand for content security for new broadband networks before licensing their valuable content. We are delighted to be working with Alcatel to provide the broadband industry with such a leading solution right now."

The integrated solution includes several best-in-class components:

Alcatel SA