PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) announced today that it hasbeen awarded a US dollar 24 million contract by Enterprise of Telecommunications Laos (ETL) toupgrade its nationwide telecom network. This project is the latest in a series that the two companieshave undertaken and further strengthens Alcatel’s leading position as a communications solutionprovider in Laos. The contract was won through Alcatel Shanghai Bell, Alcatel’s flagship Chinesecompany.

Under the terms of the contract, Alcatel will provide ETL with end-to-end telecommunicationssolutions including fixed lines, switches, multi-standard GSM/GPRS/EDGE network elements andtransmission components. Upon the completion of the project, ETL’s fixed and mobile networkcapacity will double, enabling users to take advantage of telecommunication services across thecountry.

In the framework of a supply contract for a turnkey GSM network in Laos signed in 2000, Alcateldeployed its end-to-end Evolium™ solution. This multistandard platform designed forGSM/GPRS/EDGE and 3G/UMTS networks evolves constantly with the latest technological advances,allowing costs to be optimized. It enables ETL today to seamlessly upgrade its network capacities toevolve towards GPRS and EDGE while at the same time preserving and optimizing its initialinvestments.

Alcatel will also support the deployment of the Northern Laos segment of a 1000 km-long nationwideoptical backbone network to meet an increasing demand for high quality telecommunicationsservices. The new infrastructure will use Alcatel’s next-generation SDH Optical Multi-Service Node(OMSN) systems, including the Alcatel 1642 Edge Multiplexer and the Alcatel 1662 SMC.

These projects will secure Alcatel’s position as the dominant telecommunications solutions providerin Laos with an 80% share of the country’s fixed and mobile networks. They also reinforce Alcatel’sleadership in providing mobile solutions for emerging markets. It is an achievement that illustratesAlcatel’s capability to help its customers meet the growing demand for attractive new mobileservices.

Padapphet Sayakhot, Managing Director of ETL, noted: “We are pleased to extend our closepartnership with Alcatel through these new projects and look forward to a long term co-operation.Thanks to Alcatel’s state-of-the-art solutions and excellent services, we have been able to meet rapidgrowth in demand for telecommunications services”.Gerard Dega, President of Alcatel Shanghai Bell, added: “This is a significant win for Alcatel in Laosbecause it demonstrates the strength of our partnership with ETL and is in line with our strategy ofproviding user-centric technologies and services. I believe Alcatel will continue to play a leading rolein supporting the development of the telecommunications market in Laos.”

Alcatel SA