Paris, February 17, 2004 - Alcatel (Paris: CGEP.PA and NYSE: ALA) and Orascom Telecom announced today the launch of the first commercial GSM network in the Central region of Iraq including Baghdad. The contract is part of the Global Frame Agreement signed between Orascom Telecom and Alcatel, further enhancing their ongoing relationship in the Middle East and Africa. In the frame of the contract signed in September 2003 with Orascom Telecom, Alcatel is one of the major suppliers of this new network. The first phase of the network installation started in October 2003. On November 25, 2003, Alcatel succeeded in making the first phone call on the new network. Orascom Telecom is hoping to reach 1 million subscribers in the first two years. The new network based on Alcatel's industry leading Evolium solution, comprises a core Network Sub-System (NSS), including a Mobile Switching Center (MSC) as well as an Intelligent Network platform for value-added services and revenue-generating applications such as Voice Mail Service (VMS) and a Short Message Service Center (SMS-C). Alcatel is responsible for installation and commissioning of the network in addition to supporting the network operations. As an industry-leading solution, the Alcatel Evolium family supports GSM, GPRS, EDGE and UMTS technologies that can integrate future 3G mobile data applications. Naguib Sawiris, Chairman of the Board of Orascom Telecom said, "Alcatel has proven to be a very flexible and supportive partner of Orascom Telecom. With the full support of Alcatel we have been able to meet this new challenge and provide enhanced GSM services to the Iraqi people in a record time." "This new contract reflects a significant milestone in our partnership with Orascom Telecom", said Marc Rouanne, Chief Operating Officer of Alcatel's mobile communications activities. "Taking advantage of our deep knowledge of the Iraqi telecommunications industry, we are convinced that this cutting-edge network will contribute to help Iraqis accelerate the reconstruction of their country." About Orascom Telecom The latest Offspring of the Orascom Group of Companies, Orascom Telecom emerged as the largest telecommunications player in the Middle East and Africa. Orascom Telecom's regional GSM presence and its activities in Internet and satellite, technical management and telecom support services position it as an integrated telecommunications conglomerate. With ten licenses covering the region, Orascom Telecom has positioned itself as a leading telecommunications conglomerate in emerging markets of this region. Starting with MobiNil in Egypt, Orascom Telecom continued to expand its network to cover Algeria, Tunisia, Pakistan, Congo, Chad, Zimbabwe, DRC, Ivory Coast, and just recently acquired Iraq. The company's subscriber base has continued to grow to reach over 6 million subscribers as a result of its aggressive strategy to be the primary GSM network operator in the region. Furthermore, Orascom Telecom is the largest commercial supplier of Internet access and web-based services and solutions in Egypt and has begun expanding these Services into the Arabian Gulf region. Orascom Telecom is one of five major companies representing the Orascom Group, founded by Mr. Onsi Sawiris in 1950. Orascom Group is currently considered one of the largest and most successful conglomerates in Egypt with more than 20,000 employees and a yearly turnover exceeding approximately over 3 billion EGP. Visit our site at www.otelecom.com. About Alcatel Alcatel provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or to their employees. Alcatel leverages its leading position in fixed and mobile broadband networks, applications and services to bring value to its customers in the framework of a broadband world. With sales of EURO 12.5 billion in 2003, Alcatel operates in more than 130 countries. Alcatel is now the world's fastest growing GSM/GPRS and EDGE supplier. Alcatel has established a dominant position in today's expanding emerging markets, where it is now the leader, with a 25% share. Alcatel's diversified portfolio of over 150 mobile operators includes a strong segment of greenfield operators - in Central & Eastern Europe, Asia-Pacific and Africa & the Middle-East - which are poised for the most rapid expansion. Alcatel's highly efficient business model implemented through its Evolium radio & core solutions - GPRS and EDGE ready, has significantly contributed to this success. Alcatel offers mobile operators a GSM 800, 900, 1800 and 1900MHz end-to-end solution offering, including radio access and core network systems, services platform and mobile terminals. Moreover, the company is expanding its offering in advanced applications and services.
Alcatel's application portfolio leverages and extends the value of telecom networks. Alcatel's Open Service Delivery Engine is the ideal applications environment based on next generation IN and J2EE technology. It enables the implementation of a wide range of applications such as network proxies, WAP or SMS gateways, messaging solutions such as UMS or MMS, 0800 and 0900 services, mobile or fixed VPN solutions, a complete and convergent real-time payment chain. Alcatel's UMTS solutions are a reality today, with more than 20 UMTS pilot networks delivered in Europe and in Asia. Evolium SAS, the Alcatel-Fujitsu joint venture, delivers a mobile infrastructure that is 3GPP-compliant, field-proven and capitalizes on Japanese 3G technical and field experience.
