Alcatel Wins Chinese ContractsAlcatel Wins Chinese Contracts

PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) announced today the signing of Euro 17 million GSM network expansion contracts with Jilin Mobile Communication Company Limited (Jilin MCC) and Shanxi Mobile communication Company (Shanxi MCC), the subsidiaries of China Mobile. These wins strengthen Alcatel's position as the leading GSM solutions provider in both Jilin and Shanxi Provinces. The contracts were won through Alcatel Shanghai Bell, Alcatel's flagship Chinese company.

Under the terms of these contracts, Alcatel will provide itsindustry-proven EvoliumTM solution, including Base Stations (BTS), Base Station Controllers (BSC), Operation & Maintenance Controller (OMC-R) and a Personalized Ring Back Tone (PRBT) platform, to enable the operator to meet the enhanced requirements of high-quality voice, GPRS and value-added services.

This expansion project for Jilin Mobile covers 7 cities across the Jilin Province, including Changchun, Siping, Liaoyuan, Songyuan, Tonghua, Baishan and Baicheng. The project is expected to be completed in late March 2005, and will increase the capacity of Jilin Mobile's GSM network to around 6 million subscribers. Alcatel also helped upgrade the operator's network software which has enabled Jilin Mobile's subscriber base to take advantage of GPRS and Personalized Ring Back Tone services.

The Shanxi Mobile project, the operator's ninth GSM expansion, will further improve its GSM network capability and reliability. Upon the completion of the project, the capacity of Shanxi Mobile's GPRS core network willaccommodate up to 600 thousand subscribers and further consolidateAlcatel's leading position in the Shanxi mobile switching market.

"Alcatel has been a reliable partner for many years," commented Gao Buwen, General Manager of Shanxin MCC. "Thanks to Alcatel's state-of-the-art solution and best service, we are able to extend our network capacity andsatisfy customer demand by providing customers with higher-qualityservices."

"Jilin and Shanxi Mobile's decision to choose Alcatel for the expansion of their network capabilities is a clear vote of confidence in Alcatel's ability to provide future-proof networks and an extensive applications portfolio that will attract new customers, increase ARPU and reduce churn,"added Marc Rouanne, Chief Operating Officer of Alcatel's MobileCommunications Activities. "Our strong relationship with these customers is further evidence of our commitment to the mobile market in China."

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