PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it willsupply the first DSL network in Iran. This contract has been signed with ADA (Asre Danesh Afzar), anIranian Private Operator, as part of the Private Access Provider (PAP) governmental plan for DSLprivatisation in Iran.

Alcatel will provide and support one hundred thousand DSL lines over the next 3 years, that willprovide large numbers of users in Teheran and across the country with a high speed internetconnection, and in time get access to a breadth of broadband services. The first phase of theagreement covers 23,000 lines and its deployment should be completed in May 2004.

Under the terms of the contract, ADA will deploy the Alcatel 7300 Advanced Services AccessManager, the industry’s leading broadband access platform with the highest density and lowestpower consumption, throughout Iran. Alcatel's broadband access leadership allows it to offer anunequaled service level and an integrated product portfolio that helps operators face their keychallenges: increasing coverage, tackling scaling problems, offering more services on theirbroadband infrastructure and converging voice and data platforms.

“Alcatel’s comprehensive broadband portfolio and global leadership in delivering high quality andcost effective DSL solutions made it an ideal business partner to support us in delivering enhancedbroadband solutions to our subscribers,” said Ardeshir Montaseri, Chairman of ADA. “We are alsoconfident that the Alcatel-solution is the most cost effective means of meeting our needs.”

According to Michel Rahier, Chief Operating Officer of Alcatel’s fixed communications activities,“This contract further confirms our commitment to helping to accelerate broadband deployments inemerging markets of the world. Moreover, as Alcatel would be one of the first companies enteringthe Iranian private operator’s market, it will improve our position in this country.”

Alcatel SA