PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it hasinstalled the 500,000th DSL port for Neuf Telecom, a major fixed operator in the French market.Neuf Telecom launched its DSL rollout in early 2003 and Alcatel has delivered a turnkey project withinstallation and commissioning services as well as a guaranteed fast rollout.In the course of this project, Alcatel deployed multi-DSL technology (ADSL, SHDSL) based on theAlcatel 7301 Advanced Services Access Manager.

Alcatel's multi-DSL technology has enabled Neuf Telecom to offer its customers the DSL solution bestadapted to their needs. Corporate customers take advantage of SHDSL technology, which is typicallyused by small and medium enterprises, who – as they not only download data but also transmit vastamounts of data- need higher upstream bandwidth than offered via traditional ADSL.

ADSL will be used for residential customers, who will benefit from Neuf Telecom’s extendedbroadband network. They will be able to access a broad range of innovative triple play solutions,such as broadcast video, video on demand, interactive TV, games, and Voice over IP.

"Our goal is to make broadband services available to all. We have a unique expertise, culture andapproach that sets us apart from our competitors and makes us the main player in the renewal ofthe French fixed telecom market,” says Michel Paulin, Head of Network and Customer supportdivision at Neuf Telecom. “As an alternative operator, it was of the utmost importance that we wereable to roll-out our access network fast. We needed an innovative technical solution with supportfrom an experienced player in the market, and we considered Alcatel as the ideal partner."

"From the beginning, we have been committed to the overall quality and success of this turnkeyproject. With 500,000 port installed, we now account for the largest part of their installed base. Itis our goal to continue to support Neuf Telecom in their quest to bring the very best of broadband totheir subscribers," says Michel Rahier, chief operating officer of Alcatel’s fixed communicationsactivities.

Alcatel SA

Neuf Telecom