PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has signed a contract with Sakhatelecom, one of the leading regional incumbent operators in Russia, to deploy a next-generation (NGN) network in the Republic of Sakha, also known as Yakutiya. The project will start in the second quarter of 2006 in the cities of Yakutsk and Mirny and is scheduled for completion by the end of the year.

Alcatel's IP-based solution will enable Sakhatelecom to further continue dynamic development of its telecom network in Yakutiya based on the latest technologies, to offer its customers next generation services such as NGN, IP-video, including IP Centrex, videoconferencing, virtual private networks and unified messaging, as well as enhanced Internet services. This should give a new impulse to the growth of its ADSL subscribers' base, the introduction of multimedia and many other broadband services.

"We have been working successfully with Alcatel for more than ten years so it's with great confidence that we've selected Alcatel's industry-leading solutions for our NGN deployment," said Nikolay Nikolaev, General Director of Sakhatelecom. "This project enables us to enhance our competitive edge by offering a broader range of services, to better answer growing demands of end-users and corporate customers for modern telecommunication services and reduce operating expenses through improved network efficiency."

"Alcatel's experience and expertise in NGN is now further entrenched in Russia," said Michel Rahier, President of Alcatel's fixed communications activities. "Our end-to-end portfolio will help Sakhatelecom deliver new broadband services, while providing a solid foundation for future transformation to a fully packet-based network."

Alcatel (NYSE: ALA; Paris: CGEP:PA)