Alcatel Wins ROADM Deal

PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) announced today that it has signed a turnkey contract with P&TLuxembourg, the Grand Duchy's leading provider of postal and telecommunications services, to deploy a Trans-European Network using Alcatel's reconfigurable optical add-drop multiplex (ROADM)-powered solution. The project will enhance the high-speed optical connectivity and flexibility of P&TLuxembourg network to transport large volumes of bandwidth-hungry broadband services between major European cities.

The Trans-European Network will span more than 3,000 km linking Luxembourg, Amsterdam (the Netherlands), Brussels (Belgium), Frankfurt (Germany), London (England), as well as Paris and Strasbourg (France). Its deployment will provide P&TLuxembourg with a leading-edge platform to efficiently support existing broadband services - including live TV streams, high-speed Internet access, e-shop and mail - and further optimize the delivery of Ethernet-based services.

With the implementation of the Trans-European Network, P&TLuxembourg will be present at every important Internet exchange node in Europe. The first links will be operational before the end of 2006. The entire Trans-European Network will progressively be operational at the beginning of 2007.

This enlarged European network will allow P&TLuxembourg and the Grand-Duchy to compete at arms length with other European telecommunication centers and to offer attractive prices, for bandwidth and Internet connectivity from and to Luxembourg. The network has been specifically designed to offer the maximum security and the highest quality of service by making sure that each connection has an independent redundant path.

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