Alcatel to supply IMS-ready next generation network for China National Petrochemical Karamay



Paris, October 19, 2005 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been awarded a contract by Sinkiang Petrochemical Management Bureau to deploy a next generation network for China National Petrochemical Company (CNPC) Karamay. CNPC Karamay, located in Sinkiang Province, is a subsidiary of PetroChina and the largest oil producer in Western China. The contract was won through Alcatel Shanghai Bell, Alcatel's flagship Chinese company.

The Alcatel solution integrates smoothly within CNPC Karamay's existing private voice communication system while transforming it into an IP Multimedia Subsystem (IMS) ready, next generation network capable of supporting VoIP and a wide variety of advanced IP-based multimedia services. Completion of the project is expected by the end of 2005.

The optimization and transformation of CNPC's network, which serves some 100,000 users, will significantly enhance the company's operating efficiency with assured quality, performance and support for new business-critical IP-based multimedia applications.

"Modern and reliable communications are key to ensure the efficiency of company operations," said Chen Hu, General Manager of Sinkiang Petrochemical Management Bureau which operates the communication system of CNPC Karamay. "Our cooperation with Alcatel to build a private network based on its NGN technology is the first in the oil industry in China, and is a good reference for other domestic oil companies. Thanks to Alcatel's advanced NGN solution, we are able to upgrade our communication system in a cost effective way".

"This project demonstrates Alcatel's expertise in NGN and is a showcase for Alcatel Shanghai Bell to further develop its NGN business in vertical markets", said Gerard Dega, President of Alcatel Shanghai Bell. "Alcatel's solution enables CNPC to optimize its operating costs through network consolidation while providing the building blocks to migrate to an IMS-based network capable of supporting new IP-based multimedia services".

Alcatel will deploy the Alcatel 5020 Softswitch, the Alcatel 1540 Litespan Multiservice Access Gateway and application server, providing consolidation and optimization of the customer's communication system.

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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