Alcatel awarded Euro 50 million contract by RFF to modernize French railway network with electronic interlocking equipment



Paris, March 9, 2006 — Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been awarded a framework contract valued at Euro 50 million by RFF (Réseau Ferré de France, owner and manager of the French rail network) to modernize the national railway network. With its high level of safety and availability, Alcatel's next-generation electronic interlocking system will contribute to renew the interlocking systems and improve their operation on the national railway network.

As part of this contract, Alcatel will provide its PAING solution, a next-generation electronic interlocking system based on standard technology. This solution will be deployed in a significant portion of the French railway junctions, which will be renewed in the years to come. Its flexible architecture allows its implementation at small railway stations as well as large stations managing dense and complex interconnections. Capitalizing on the PIPC electronic interlocking solution that has been operating at more than 50 stations of the French railway network for the last 5 years, the PAING solution reuses existing developments, while adding new features required by RFF and offering life cycle cost improvements.

"Alcatel's solution meets the objectives of our specifications: to optimize life cycle cost and ensure interface compatibility with existing systems a well as with new ones such as ERTMS" stated Philippe Le Bouar, Head of Electric and Signalization Department of RFF. "We also want to be in a position to upgrade this interlocking system without impacting the other interfaced systems and vice versa".

"We are really pleased to reinforce our close relationship with RFF in signaling" said Jean-Luc Arguedas, General Manager of Alcatel's transport automation activities in France. " We have been working together for a long time with RFF and SNCF to develop innovative and customized solutions to modernize and optimize railway infrastructures. This frame contract strengthens our position as prime signaling supplier of RFF".

Alcatel's PAING solution is based on a proven technology that is also operational in Portugal and Tunisia. As operators are seeking cost-effective interlocking systems, this new contract exemplifies the fact that safety and high availability are perfectly compatible with optimized operational and maintenance costs. This major achievement, confirms Alcatel's leadership in terms on electronic interlocking systems.




About RFF
As proprietor of 29,000 kilometers of operational rail lines, Réseau Ferré de France (RFF), a State enterprise created in 1997, manages one of the largest rail infrastructure networks in Europe. It owns the leading network of high-speed rail lines and exercises numerous responsibilities. RFF ensures distribution of paths that enable management of train movements. Responsible for the maintenance and operation of the network, RFF sets the principles and objectives in compliance with which the SNCF executes these missions. In charge of developing the network, RFF leads many projects combining national and regional development, economic requirements and sustainable development; it builds new rail lines while organizing the mix of passenger – freight uses when required, and ensures modernization of the network by implementing the railway portion of central planning contracts. As prime contractor, RFF manages construction of the European East High-Speed Line and other major projects. RFF handles management of the debt that was transferred to it at its creation and seeks innovative financing for the investments it undertakes. In the property domain, RFF implements a policy combining anticipation of railway needs and integration of regional development projects.

About Alcatel's Railway Solutions
To meet the challenge of increased mobility, Alcatel offers a host of advanced railway solutions that ensure safe, reliable and comfortable transportation of passengers and freight through the network. Drawing on wide international experience in all aspects of transport automation and network integration and services, Alcatel is a leading worldwide supplier for signaling - train control, train routing, control centers - and integrated communications solutions to carry and distribute voice, data and video to and from all sites of urban and main line rail. Whether enhancing, renewing or building new lines, Alcatel is an ideal partner to address the operational needs of main line and urban rail operators.

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 13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries.

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