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Alcatel today announced the signature of a contract with tele.ring for the expansion of their 3G/UMTS network. The expansion will result in 50% of Austria being covered by tele.ring's UMTS network by the end of 2005. Simultaneously the existing service contract was enlarged and extended for an additional three years. The total contract value, including UMTS Radio Access Network and a transmission solution, amounts to approximately Euro 60 million.

"With Alcatel we have already realized the first phase of our UMTS launch successfully and cost-efficiently " said Michael Krammer, Chief Executive Officer of tele.ring." With this further extension of our hybrid GSM/GPRS/UMTS network, tele.ring will ensure 50% network coverage in Austria by the end of 2005. This move will further strengthen our strategy of offering our customers optimal quality and the best price performance for our UMTS network."

"We are privileged to strengthen our existing business relationship with this dynamic operator, both for 3G infrastructure and for services" added Marc Rouanne, chief operating officer of mobile communications activities, "Our strong portfolio and international experience enable us to help strengthen our customer's market position. The extension of the UMTS infrastructure and service contract demonstrates Alcatel's leading role in the development of user-centric 3G solutions."

Last year, Alcatel successfully installed a UMTS upgrade solution for tele.ring's GSM/GPRS network, thanks to its field-proven Evolium? multi-standard base stations. Alcatel's Evolium? multi-standard platform integrates all technologies, from GSM/GPRS to EDGE and UMTS, and allows all solutions in one, for a smooth upgrade of existing networks.