www.alcatel.com

Alcatel announced today that it has signed a contract for the supply of a complete solution, including GSM/GPRS/EDGE infrastructure and services, to Investcom in Cyprus. The system will be operational on May 1st, 2004 by Scancom, the local Cypriot company owned by Investcom.

This deal has been concluded thanks to Alcatel's full portfolio of mobile solutions and value added services as well as a long established relationship with Investcom. With this contract, Alcatel increases its leadership in Cyprus and gains new GSM/GPRS/EDGE market share in Europe.

Under the terms of the contract, Alcatel will supply Scancom with its industry leading Evolium(TM) solution. The contract encompasses a complete GSM/GPRS/EDGE radio and mobile core network. Alcatel will also supply an Intelligent Network platform for value-added services and revenue-generating applications such as MMS, Voice Mail Service (VMS), a Short Message Service Center (SMS-C), Mobile Number Portability (MNP) and post paid/ prepaid convergence.

"This GSM/GPRS/EDGE network in Cyprus, being the first network for Investcom Group in Europe, drives us to rely on efficient and trustworthy partners. Signing this contract with Alcatel demonstrates our long-lasting partnership with them, and our confidence in their solutions," declared Mr. Jamal Ramadan, Executive Director of Investcom.

Marc Rouanne, Chief Operating Officer of Alcatel's mobile communications activities added; "Alcatel is already the major supplier in Cyprus of fixed telephony and submarine networks. With this new contract, Alcatel enters the mobile market segment as well. Furthermore, we are very proud to support Investcom for its first network in Europe. This contract will also enhance Alcatel's position in the Mediterranean region."

Alcatel's Evolium(TM) solution offers operators the best solution for capacity, performance and network quality and integrates all technologies, from GSM/GPRS to EDGE and UMTS for a smooth upgrade of existing network and associated services. Furthermore, Alcatel is strongly committed to considerably reduce deployment, extension, operation and evolution costs for future services.