Alcatel and Orange Sign 315 Million Euro Contract; Alcatel will supply an UMTS/3G mobile network to Orange France -Itineris-

Alcatel (Paris: CGEP.PA and NYSE: ALA) and France Telecom Mobile, the French subsidiary of Orange S.A., which handles the mobile activities for France Telecom worldwide, have signed a contract for the supply of a 3rd generation mobile communication network (3G/UMTS) for France.

This contract, estimated at 315 million Euro, pertains to the delivery and installation of several thousands of Evolium B Nodes (UMTS base stations) and associated equipment for the next three years. It also includes the supply of the required UMTS core network system and the deployment of a trial network.

The UMTS Evolium radio equipment will be installed mainly on the already existing sites of Itineris's network, allowing coverage for half of Northern France, including Paris and its outskirts. Alcatel plans to start installing the equipment as early as the second trimester of 2001. Alcatel will also furnish its Evolium solution for the 3G-core network, which can manage up to one million subscribers. The Evolium solutions from Alcatel will allow Orange France to offer new services, while capitalizing on base stations and Evolium sub-system network already in place. Orange France projects to launch the first 3G services by mid-2002.

"We have chosen Alcatel for its Evolium solutions which are perfectly adapted to our idea of evolution and network migration," said Didier Quillot, chief executive officer for France Telecom Mobiles. "Already being heavily implanted in our GSM/GPRS networks, they can assure us a progressive evolution towards 3G and guarantee UMTS competitive time-reliant equipment."

In Europe, Alcatel is already an Orange supplier for GSM/GPRS networks in France as are Mobistar in Belgium, DutchTone in the Netherlands, Wind in Italy, MobilRom in Romania and Globtel in Slovenia. Alcatel is also the supplier of a dozen networks for Orange throughout the rest of the world.

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