Alcatel signs a 145 million euro global frame agreement with Vodacom for the deployement of GSM networks in the Democratic Republic of Congo

Paris, April 4, 2002 - Vodacom Congo, has awarded Alcatel (Paris: CGEP.PA and NYSE: ALA) with a five-year frame contract exceeding 145 million euro for the supply of a turnkey GSM 900/1800MHZ network in the Democratic Republic of Congo (DRC).

This global agreement will enable Vodacom Congo to enhance its existing GSM infrastructure by using Alcatel's latest products and services, which are compatible with GPRS/EDGE and UMTS-ready. Alcatel will conduct the global project management from network planning and design to implementation, including installation, integration, site construction as well as network testing and commissioning on a turnkey basis.

Alcatel will supply Vodacom Congo with its Evolium (TM) solution, comprising its radio access network (base stations and base station controllers) and mobile switching centers. Alcatel's solution also includes an Intelligent Network platform offering value-added services such as Prepaid Mobile Solution (PPS), Voice Mail System (VMS) and a Short Message Service Center (SMS-C).

Alcatel will implement a satellite backbone network as the most suitable and reliable way to interconnect the mobile switching centers. Alcatel's solution is based on a very high compression rate technology in order to reduce the space segment.

Alcatel will also provide its low and medium capacity point-to-point microwave radio equipment targeting short-haul applications. Based on Plesiochronous Digital Hierarchy (PDH) technology, these systems are designed for seamless integration into any urban environment.

"We have chosen Alcatel because they could provide us with a complete end-to-end solution as well as ensure a smooth evolution of the network and meet traffic development requirements", said Andrew Mthembu, managing director of Vodacom International Holdings and deputy CEO of the Vodacom Group. "Our cooperation with Alcatel provides a solid base for building efficient and reliable networks which are key to our business."

" We are very happy to reinforce our partnership with the Vodacom Group, which started back in 1995 when we supplied them with radio access solutions in South Africa. By supplying this new full turnkey GSM network to Vodacom Congo, Alcatel is once again increasing its footprint in Africa", stated Marc Rouanne, president of Alcatel's Mobile Networks activities. "We believe that mobile telephony will develop rapidly in the Democratic Republic of Congo and we are fully committed to support its economic development by employing and training local staff."

Alcatel is a leading supplier of GSM networks in Africa with 36 references: Algeria, Benin, Burkina Faso, Burundi, Cameroon, Central Africa, Congo, Djibouti, Egypt, Gabon, Gambia, Ghana, Guinea, Equatorial Guinea, Ivory Coast, Kenya, Libya, La Reunion, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Niger, Nigeria, Senegal, Seychelles, South Africa, Sudan, Tanzania, Togo, Tunisia, Uganda and now the Democratic Republic of Congo.

Today, one out of four operators worldwide trusts Alcatel for the supply of its GSM 800, 900, 1800 and 1900 MHz networks.

About Alcatel
Alcatel designs, develops and builds innovative and competitive communications networks, enabling carriers, service providers and enterprises to deliver any type of content, such as voice, data and multimedia, to any type of consumer, anywhere in the world. Relying on its leading and comprehensive products and solutions portfolio, stretching from end-to-end optical infrastructures, fixed and mobile networks to broadband access, Alcatel's customers can focus on optimizing their service offerings and revenue streams. With sales of EURO 25 billion in 2001 and 99,000 employees, Alcatel operates in more than 130 countries.

About Alcatel's Evolium solutions
Alcatel is now the world's fastest growing GSM/GPRS supplier. Currently, over 110 mobile operators worldwide rely on Alcatel's Evolium GSM/GPRS core and radio solutions.
By creating Evolium SAS, an Alcatel-Fujitsu company, Alcatel clearly reinforces its position in both mobile infrastructure and mobile Internet. Evolium SAS combines Alcatel's expertise in GSM, GPRS, and EDGE as well as in ATM and IP technologies, with the advanced experience of Fujitsu as supplier of NTT DoCoMo. By the end of 2001, NTT DoCoMo had over twenty eight million i-Mode subscribers in Japan and has started the commercial operation of its 3G mobile communication services on October 1st 2001.
Alcatel's UMTS solutions are a reality today, with 15 pre-commercial UMTS networks already installed worldwide, and another 10 to be delivered by mid-2002. Alcatel's strategy covers all aspects of UMTS deployment, from radio access and core network to terminals.
Alcatel's Evolium SAS delivers a radio infrastructure that is 3GPP-compliant, field-proven and capitalizes on Japanese 3G technical and field experience.
Alcatel, which played a vital part in developing the mobile Internet market, in particular through the successful roll out of GPRS commercial networks world-wide, has today a timely UMTS offering.

About Alcatel 's wireless transmission
In wireless transmission, Alcatel's full-range catalogue comprises high, low-medium capacity microwave systems – based on PDH (Plesiochronous Digital Hierarchy), SDH (Synchronous Digital Hierarchy) and North American standard technologies – for business, mobile broadband distribution and private network applications. All the mentioned radio systems are managed by one common and fully integrated network management platform. Alcatel has installed more than 250.000 radios in over 150 countries.

About Alcatel Space
Alcatel Space ranks among the world's leading space systems prime contractors. Leveraging its dual expertise in civil and military applications, Alcatel Space develops satellite technology solutions for telecommunications, navigation, optical and radar observation, meteorology, and scientific applications. A fully owned subsidiary of Alcatel (100%), Alcatel Space generated 2001 revenues of 1.4 billion euros and has 6,000 employees.

About Vodacom
Vodacom is a world class cellular communications company providing a GSM service to more than 6 million customers in South Africa, Tanzania, Lesotho and Democratic Republic of Congo.
Vodacom is South Africa's leading cellular network operator with 60% share of the market and more than 90% of all new connections are prepaid customers.
Vodacom Congo (DRC) s.p.r.l. has been launched in December 2001, following the ratification of a joint venture agreement between Congolese Wireless Networks (CWN) and Vodacom International Holdings (Pty) Ltd by the Vodacom Group (Pty) Ltd board.
Vodacom shareholders are Telkom SA - 50%, Vodafone Group - 31,5%, Venfin - 13,5% and Hosken Consolidated Investments - 5%. For more information http://www.vodacom.co.za