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Alcatel Wins Armenian Contract

PARIS — Paris, August 3, 2005 – Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced the signing of a multimillion contract to deploy a GSM/GPRS mobile network for VivaCell, the second mobile operator in Armenia. Alcatel partnered in this project with Intracom company, a Greek telecommunications integrator. Implementation of this project will enable VivaCell to anticipate the growing demand for a reliable mobile communication network in the country and to provide advanced high-quality services to the Armenian end-users.

Under the terms of this contract, Alcatel will deploy a complete GSM network based on its industry-proven multi-standard Evolium? solution. Alcatel’s solution will cover the whole territory of Armenia and will include Mobile Switching Centers (NSS) for 400 000 subscribers, more than 200 Base Stations Sub-Systems (BSS) with natively embedded GPRS capabilities, as well as a backbone solution based on Alcatel’s next-generation SDH Optical Multi-Service Node (OMSN) systems and access network.

Alcatel will also deliver its Open Services Platform (OSP) solutions, an IT-based system which will enable VivaCell to rapidly develop and deploy new high-value mobile services such as mobile VPN and convergent payment. These new services are expected to help building customer loyalty and support the operator’s efforts to increase its market share in the country.

Commercial launch of the network was announced on July 1st, 2005.

Mr. Ralph Yirikian, General Manager of VivaCell said: “VivaCell’s vision is to be the Leading Provider of Mobile Communications in Armenia and to achieve this vision we have partnered with leading worldwide suppliers to provide brand new state of the art technology, partners like Intracom – for the network system integration, Alcatel – for the radio, transmission, switching and IN (Intelligent Network) platform and some others”.

Johan Vanderplaetse, vice-president of Alcatel in the Commonwealth of Independent States (CIS) added: “This contract not only gives Alcatel a good footprint in the mobile market in Armenia but it also reinforces our presence in the overall CIS market. We are committed to enable VivaCell to become a stronger competitive operator in Armenia and to help them provide the Armenian end-users with the most advanced mobile services”.

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