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Technology Stocks : Alcatel (ALA) and France

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To: zbyslaw owczarczyk who wrote (2061)6/29/2000 7:12:00 AM
From: zbyslaw owczarczyk  Read Replies (1) of 3891
 
Paris (Reuters) - Alcatel (Paris: 13000.PA - topicality )
translation form French
shows the strongest fall of the CAC 40 (Paris:
350000.PA - topicality ), affected like its pars by fears of deceleration of the market of mobile telephony.

Towards 11h45, the title loses 5,49% to 65,45 euros, after one low of 64,65. With more than four million
exchanged parts, the value is most active of the index CAC which loses 1,29% at the same time.

Ericsson yields on his side 7,2% at Stockholm and Nokia (Paris: 5838.PA - topicality ) retrogresses of 6%
in Helsinki, contributing to the retreat of 4,34% of the sectoral index EuroStoxx of the technological ones.

" All in all, the investors worry about a stabilization, even about a deceleration, subscriptions in the field of
mobile telephony in the months to come ", explains a trader.

The general manager of Ericsson, Kurt Hellstrom, declared with the Swedish newspaper Dagens Industri
that the growth of the sector of mobile telephony would probably slow down because of the high costs of
licences UMTS in Europe.

In France, fears of deceleration of the market are put forward in a article of the Platform published Thursday
and taking again made forecasts the last week by The Phone House. The specialized distributor had said to
envisage a deceleration of the hexagonal market this year with 12 to 13 million sold portables whereas the
operators and distributors counted at the beginning of year on 16 to 18 million units.

Quoted by the platform, Fran‡ois Pilleron, direct general public marketing at Ericsson, confirms that a
deceleration is observed since the beginning of the year but adds " not to see danger in the residence taking
into account the capacities of development of this market ".

" There are concerns on the market of mobile telephony, the growth rates of the new subscribers decreased in Europe ", confirmed an analyst
questioned by Reuters by specifying that the equipment suppliers, more than the operators, are affected by these fears.

Alcatel, estimates it, goes down " rather in sympathy " with Nokia which has depreciated itself of 22% out of Stock Exchange for one week on
bottom of concerns concerning its results of the second quarter.

The speakers consider on the other hand positive the agreement that would be on the point of concluding Alcatel with the Italian operator Wind
for the joint development from a network UMTS. " It is a positive news ", known as thus a trader about this announced agreement of source
close to the negotiations in Rome.
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