Michel Rahier, COO of Alcatel’s fixed communications activities, speaking at a recent telecom event about the company’s expanding global role.

PARIS, 8 March 2005 — Industry analyst firm Dell’Oro has again confirmed that Alcatel is the worldwide leader in the digital subscriber line (DSL) market. According to fourth quarter 2004 data from the Dell’Oro Group, Alcatel’s cumulative market share has increased to 37.8 percent with a total of more than 58 million cumulative DSL lines shipped. Alcatel continues to lead the DSL market with more than four times the cumulative global DSL line volume of any other supplier, holding the leading share position in every region of the world. Alcatel’s DSL port shipments increased strongly in 2004, reaching 19.6 million ports for the full year, a 24-percent increase over 2003.

The year 2004 was marked by major achievements in Alcatel’s strategy and product portfolio. Alcatel launched its IP-based broadband access platform, the Intelligent Services Access Manager (7302 ISAM and the 7330 FTTN ISAM), to help service providers offer 100 percent Triple Play services (e.g. video, voice and data — “the triple play”) to all their customers at the same time, either from the central office or from remote terminals. Major incumbent local service providers have selected Alcatel as their provider of the broadband access infrastructure, confirming Alcatel’s leadership in broadband access and IP technologies. In total, Alcatel already has 11 ISAM customers.

“Over the past year, Alcatel has clearly demonstrated its triple play knowledge and experience, as well as its capability to offer an end-to-end solution for major broadband triple play projects. This has been acknowledged by major service providers such as SBC, which selected Alcatel as the primary provider of its triple play access infrastructure and integration services. Our leadership in the broadband access market, as well as our vast experience in multivendor broadband networks, gives us the optimal background to deal with largescale triple play rollouts,” said Michel Rahier, chief operating officer (COO) of Alcatel’s fixed communications activities.

In the Middle East, for 2005, Alcatel has started off in strong form. Alcatel has been awarded a 41 million euro contract by the Dubai Department of Civil Aviation to supply, integrate and deploy the telecommunications and security systems for Dubai International Airport’s expansion project.

The Dubai Department of Civil Aviation has begun the second phase of its expansion program, related to the construction of Terminal 3, Concourse 2 and a car park, all dedicated for Emirates Airline and a large cargo terminal. The construction work is to be completed in mid-2007. The airport will have the capacity to handle close to 70 million passengers a year, a significant increase from its current capacity of 22 million. This expansion will position Dubai International Airport as the leading airport in the region.

Alcatel is part of the consortium led by Thermo L.L.C., which was awarded the overall project as well as the supply of all specialized airport systems together with Arinc. Alcatel will supply, integrate and deploy security and access control systems, closed-circuit TV, radiating cable for the extension of the existing TETRA system, a master antenna system for an entertainment distribution network and an overall structured cabling network connecting all systems over 7,000 kilometers. The overall value of the consortium contract is 370 million euros.

“This project is our largest communications contract won to date against strong competition for an airport. It further leverages our experience in managing large integration projects with strong pressure in terms of project management and time frames,” said Frederic Rose, president of Alcatel’s integration and services activities.

After its win in Dubai, the company looked further south to pick up the Yemen Telecom (Public Telecommunication Corporation — PTC) contract to supply equipment for a DSL network that delivers high-speed services across the country. Under the terms of the contract, Alcatel will provide DSL lines over a period of three years to Yemen Telecom, to support its nationwide broadband deployment.

Yemen Telecom’s broadband subscribers will get access to a high-speed Internet connection and eventually, a breadth of broadband services. The first phase of the agreement covers the installation of 3,000 DSL lines. Yemen Telecom (PTC) will deploy the Alcatel 7301 Advanced Services Access Manager, the industry’s most widely deployed broadband access platform.

“Alcatel’s comprehensive broadband portfolio and global leadership in delivering high-quality and cost-effective DSL solutions made it an ideal business partner to support us in delivering enhanced broadband solutions to our subscribers,” said Kamal Al-Jebry, director-general of Yemen Telecom (PTC). “We are also confident that the Alcatel solution is the most cost-effective means of meeting our customer’s needs.”

Acatel’s COO added, “This contract further confirms our commitment to helping to accelerate broadband deployments in the emerging telecom markets of the world. Alcatel will be the first company supplying a DSL solution for the market in Yemen. The introduction of broadband will boost the local economy and create an entirely different telecom experience for the citizens and enterprises in Yemen.”