PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that Slovak Telecom, Slovakia's leading telecommunication supplier and majority-owned by Deutsche Telekom, has selected a next-generation multimedia/VoIP network solution from Alcatel. This contract, worth approximately Euro 25 million, is the largest in Eastern Europe, and signifies a move to upgrade aging analog infrastructure for new-generation applications.

Alcatel's IP-based Next Generation Network (NGN) solution allows Slovak Telecom in the future to completely replace its Class 5 voice network infrastructure and immediately begin delivering innovative new broadband services such as Voice over IP; multimedia conferencing; unified messaging including gaming and music downloads; enhanced Internet service; and integrated personal computer and phone applications. Furthermore Alcatel's solution will allow Slovak Telecom to deliver these applications over a fully unified platform thereby allowing them to diversify their service offering, expand their customer base and reduce potential customer churn.

In 2001, the Slovak Government permitted the majority purchase of Slovak Telecom by Deutsche Telekom based on the condition that the entire network would undergo digitalization by the end of 2004. This included the replacement of 309 locations equipped with small analog switches and 211,000 subscriber lines.

"We chose the Alcatel solution because we feel that an NGN infrastructure is the basis for future efficiency leading to a decrease OPEX in operationand maintenance costs. In addition, by essentially skipping thedigitalization stage, we are able to very quickly begin introducing high-value broadband multimedia services - far more quickly than we had anticipated," said Herbert Müller, Chief Operating Officer of Slovak Telecom. "We can meet our objective to continuously grow the business by achieving the highest level of customer satisfaction while providing the most innovative products and services."

"Slovak Telecom exemplifies the Eastern European vanguard to enhance their network infrastructure and benefit by merging traditionally separate voice and data networks," said Michel Rahier, Chief Operating Officer of the Alcatel Fixed Communications Group. "This unified NGN core infrastructure is easier to maintain and allows a variety of new services. Slovak Telecom, its affiliates and its broad customer base will all gain from this successful multimedia/VoIP implementation."

Alcatel SA

Slovak Telecom