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Technology Stocks : Alcatel (ALA) and France

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To: zbyslaw owczarczyk who wrote (3595)8/9/2001 5:53:25 PM
From: zbyslaw owczarczyk  Read Replies (1) of 3891
 
China Telecom selects Alcatel's optical multi-service gateways to
expand its metropolitan network in Northwest China

Alcatel will supply its Lambda Gate: the industry's first multi-band switch goes beyond 5 Tbit/s
cross-connecting capabilities

Paris, August 6, 2001 - Alcatel, (Paris: CGEP.PA, NYSE: ALA), world leader in intelligent
optical networking, announced today the signature of a multi-million dollar contract with China
Telecom to expand the metropolitan network in Xi'an, the capital of Shaanxi Province, in
Northwest China. Under the deal, Alcatel will supply its naturally carrier-grade optical gateway,
which will ensure a smooth build out of the city's information network architecture within the
coming years.

Alcatel will deploy its Lambda Gate system in four key sites to flexibly interconnect the network
fabric constituting Xi'an metropolitan transmission infrastructure. Interconnections will be
implemented through a fully meshed network based on 10 Gbit/s interfaces integrated in the
system directly. Designed to optimize network and switching costs, this optical solution offers a
capacity extension over 5 Tbit/s.

Alcatel's Lambda Gate, a key part of Alcatel's popular Core Node, is the world's first multi-band
switch to support any customized configuration for sub-wavelength aggregation and optical
layer restoration. Core Node forms a unique integrated platform, which can scale independently
in each transmission layer – optical, TDM or data - along with specific service needs. Operators
can thus closely match their network investments with revenue growth to maximize profitability
even in the most uncertain market conditions.

Under the deal, Alcatel will also supply its integrated network management system to ensure
end-to-end control, network protection and restoration, fast provisioning of services.

"The Xi'an project is part of a more extensive investment plan in infrastructure staked to speed
up the Province's economic growth" said Chang Xiaobing, Vice President of China Telecom. "It
will provide China Telecom with a strategic technological base offering additional network
coverage and increased capacity to efficiently deliver new, high-speed services to our
customers ", he also explained.

"Reduced network complexity, economics and responsiveness to customers' specific
requirements are distinctive elements for operators and service providers in establishing a
clear competitive advantage" stated Jean-Marie Vansteenkiste, President of Alcatel's terrestrial
networks activities. "By satisfying all of these aspects, the Alcatel Lambda Gate will permit
China Telecom to rely on a cost-effective network, which supports services on demand and
easily accommodate massive traffic flows," he added.

About the Alcatel Lambda Gate
Alcatel's Optical Gateways can satisfy any customer requirement, providing sub-wavelength
aggregation and switching solutions for all network layers – from the optical layer to all TDM
data layers. The Alcatel 1674 Lambda Gate, the core platform for the optical gateway,
integrates network layers in one network element, thus reducing network complexity. The
system allows for multi-service configurations, providing switching capacities up to 2.5 Tbit/s
on 155Mbit/s level, and 3.2 Tbit/s on optical 10 Gbit/s level. It is an integral part of the Alcatel
Core Node witch provides from 640 Gbit/s to beyond 10 Tbit/s IP switching capability. The
Alcatel 1674 Lambda Gate allows for the transport of 10 Gbit/s DWDM transmission flows, as
well as SDH switching and routing capabilities, thanks to an optimized handling of the different
network layers themselves and their inter-working in one single node. Furthermore, this system
provides among other advantages growth on demand and scalability aligning revenues and
investments, in-services upgrades and extensions, real-time signal and performance
monitoring, and supports all conceivable networking applications.

About Alcatel
Alcatel is the only vendor to master all optical network elements, from optical components,
optical fibers, DWDM systems and microwave radio links to core routers and network
intelligence, and from terrestrial to submarine solutions. Alcatel is also the only company to
provide both terrestrial and marine services for the installation and maintenance of global,
seamless optical networks. According to RHK's 2000 study, Alcatel holds the number two
position in global optical transport market with 20% market share, distancing itself from other
competitors. RHK also reported that Alcatel reaffirms its number one position in submarine
networks with 41% worldwide market share. Moreover, Alcatel claims to be the world leader in
total terrestrial and submarine DWDM systems, in digital cross-connects, which contain the
enabling technology for operators to offer high bandwidth services, in SDH networks and in
microwave radio links. Alcatel's optics business comprises terrestrial and submarine
transmission systems, fiber optics, optical components and microwave radio links. Alcatel has
launched a new class of Alcatel stock which is intended to track the performance of Alcatel
Optronics, the Company's optical component business.
Alcatel builds next generation networks, delivering integrated end-to-end voice and data
networking solutions to established and new carriers, as well as enterprises and consumers
worldwide. With sales of EURO 31 billion in 2000 and 110,000 employees, Alcatel operates in
more than 130 countries.

Contact press@www.alcatel.com
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