Alcatel and Intel Announce Strategic Alliance for WiMAX

SANTA CLARA, Calif., and DALLAS, March 25, 2004 - Alcatel (NYSE: ALA) and Intel® today announce a strategic alliance for the definition, standardization, development, integration and marketing of WiMAX end-to-end solutions. This alliance will deliver solutions by the second half of 2005.

WiMAX can be deployed in emerging markets and developed countries, both in urban and rural areas. It offers either broadband access where DSL (Digital Subscriber Line) cannot reach customers for technical or economical reasons, a last-mile alternative for competitive operators with a combined voice and broadband access offer, or nomadic access complementary to GSM/Edge, Wi-Fi and 3G.

"Alcatel's vision is to put the users at the center," said Marc Rouanne, chief operating officer of Alcatel's mobile activities. "Our cooperation with Intel will help us provide users with a seamless broadband access experience, whether in the office, at home, stationary or on the move."

"Carriers will need strong vendors like Alcatel to ensure the reliability and scalability of carrier-class WiMAX deployments," said Sean Maloney, executive vice president and general manager of Intel Communications Group. "Alcatel's leading position in fixed and mobile broadband access together with Intel's expertise in leading the development and standardization of new technologies will help expedite the acceptance of WiMAX in the worldwide market for broadband services."

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. For more information, www.alcatel.com

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