Alcatel reinforces market leadership with innovative addition to ISAM broadband access family



Madrid, Spain, October 4, 2005 Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced the newest addition to its industry leading access portfolio, the Alcatel ISAM Voice Package. The Alcatel ISAM Voice Package adds a voice over IP media gateway as well as legacy POTS and ISDN line cards to support a migration to an NGN/IMS network.

The modernization of traditional PSTN networks, driven by gradual obsolescence, is causing service providers to make strategic choices. Many of them are choosing to invest in a new fiber-rich broadband access infrastructure to support services with growth potential rather than in a mere replacement of legacy voice service capabilities.

Two key technological choices are profoundly changing how access products should be built in the future, the adoption of IP and Ethernet as the core platform for convergence by the market; and the need to deploy a high bandwidth, fiber-rich access platform to support IPTV services. Access products need to be built on a native IP and Ethernet platform and have the form factor and interface flexibility to bring fiber as close as economically possible to the end-user.

Alcatel's ISAM Voice Package enables customers to deploy one converged broadband access network that supports both IPTV/triple play roll-out plans, as well as the migration of legacy PSTN to an NGN/IMS network - a key factor to successfully transforming access networks.

Michael Howard, Principal Analyst, Infonetics Research said, "In a recent worldwide study of major service providers by Infonetics Research, 92% of respondent providers indicated the need to support packetized voice on their broadband access network, while 62% need the support for IPTV by early 2006. The voice package and the Alcatel ISAM family clearly satisfy these carrier requirements in a timely manner."

Michel Rahier, President of Alcatel's fixed communications activities, commented, "The ISAM voice package is another example of Alcatel's commitment to bringing innovative end-to-end triple play solutions. With more than 35 customers committed to deploying the ISAM family and a key Asian operator already deploying the ISAM voice package, Alcatel has a proven record of putting innovation to work for our customers."

Alcatel has shipped over 70 million DSL lines worldwide and its broadband access solutions are prominent in networks of over 120 service providers worldwide.

About Alcatel's user-centric triple play
To meet today's quest for increased personalized and interactive services, Alcatel helps worldwide operators transform their networks and deliver a new, way better end-user experience. Alcatel's user-centric triple play builds on its leadership in broadband technology, IP networking, optics, new multimedia and video applications, as well as end-to-end services integration. End-users will enjoy unique, exciting services including video on demand, personal TV, community channels, online gaming and sharing of music, photos and home videos, all delivered simply and seamlessly via a range of devices and networks.

About Alcatel
Alcatel provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks; applications and services, to help its partners and customers build a user-centric broadband world. With sales of EURO 12.3 billion and 56,000 employees in 2004, Alcatel operates in more than 130 countries.

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