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To: zbyslaw owczarczyk who wrote (2810)12/4/2000 11:55:34 PM
From: zbyslaw owczarczyk  Read Replies (1) | Respond to of 3891
 
Alcatel Far Outperforms the Market by Registering 90 Percent Orders
Growth in Asia Pacific in 2000
Alcatel's Market-ready, End-to-End Third Generation Mobile Solutions Will Drive Growth in the
Region 2001

Paris, December 4, 2000- Alcatel will achieve a 90 percent increase in order-intake in 2000 in
Asia Pacific, significantly outperforming the expected 15 percent growth in carrier equipment
market for the same period.

Alcatel identifies mobile business as the key growth driver in the region in 2001 and beyond,
enabling mobile operators to quickly deploy Third Generation (3G) mobile networks with Alcatel's
market-ready end-to-end solution.

Strong recovery after the Asia economic crisis spurred heavy investment in telecommunications
infrastructure across the region, generating a 15 percent growth in the carrier equipment market
in 2000. Alcatel forecasts this market to grow at least 15 percent again in 2001.

Alcatel's 90 percent orders growth in 2000 come from higher-than-expected business
performance across all markets in Asia Pacific, spanning the key markets of data, optics and
mobile.

In September 2000, Alcatel signed an agreement with Fujitsu to establish Evolium SAS, a 66/34
joint venture to research and develop high-quality mobile communications radio infrastructure,
including GSM, its different evolutions including GPRS (General Packet Radio Service) and EDGE
(Enhanced Data rate for GSM Evolution), and 3G/UMTS (Universal Mobile Telecommunications
Systems, also known as IMT2000).

Alcatel and Fujitsu began cooperation at the beginning of 2000, and Evolium SAS will have a timely
first 3G offering (UMTS- R'99) ready for deployment by first half 2001.

Addressing a press conference at ITU Telecom Asia 2000, Alcatel Asia Pacific President Ron
Spithill said, "We see immense business opportunity in the mobile market in Asia
Pacific, which we estimate will grow at a compound annual rate of over 20
percent in the next five years."

"Investment in broadband communications networks by mobile service providers
will represent about 40 percent of the US$ 45 billion total carrier equipment
market in the region. Migration of mobile networks to 3G to meet the demand
for mobile multimedia services will see this market taking off in the next few
years," he added. The number of 3G mobile operators in Asia Pacific is expected to reach more
than 30 in 2002.

3G mobile operators will have to deploy end-to-end broadband capability in the entire mobile
network: core, radio access, network management, applications and terminals. This demands that
solutions providers to have technical competence in more than just the radio access part of the
mobile network. In addition to the radio systems (UTRAN- UMTS Terrestrial Radio Access
Network), the network systems (CORE) and the mobile terminals, Alcatel's offering in UMTS is also
prominent in the field of applications and services.

Alcatel's world-leading Open Services Platforms provide a suite of applications that allow
customers to migrate efficiently from GSM to the next generation of value added services.
Alcatel's Nextenso software house enjoys an advanced position in the creation and the
management of new-generation Internet portals and content.

"3G operators need a comprehensive portfolio of end-to-end solutions to deploy
their mobile networks quickly. This is precisely the strength of Alcatel, which
differentiates us from competitors," Ron Spithill explained.

Alcatel is the worldwide leader in wired and wireless multi-service broadband access, which is
the cornerstone of multimedia-ready next generation networks. Alcatel has over 50 percent global
market share in both ADSL (Asymmetric Digital Subscriber Line) and LMDS (Local Multipoint
Distribution Services).

Alcatel's expertise together with Fujitsu's advanced experience gained in offering solutions for
NTT DoCoMo, uniquely positioned Alcatel in providing a credible 3G portfolio that will provide
first-mover advantage to operators.

About Alcatel
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 120,000 employees and sales of EURO 23 billion in 1999, Alcatel operates in
more than 130 countries.

For Alcatel press conference presentation slides and photos in ITU Telecom Asia 2000, please
visit: http//www.alcatel.com.hk/asiatelecom

Contact press@www.alcatel.com