Paris, March 16, 2006 -- Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been awarded a contract by Yemen Telecom, Yemen's incumbent telecommunications service provider, to supply and integrate a network operation center for its fixed line and mobile networks.

Alcatel's network operations center aims to centrally manage all multi-vendor and multi-technology network systems. It will help Yemen Telecom to improve its operational efficiency and provide superior quality of service to its customers while keeping operational costs under control. It will also allow Yemen Telecom to augment its network capacity to be able to quickly deploy new broadband services, such as NGN and triple play services to ensure new revenue.

Alcatel will be responsible for the implementation of the whole solution in the existing operator's environment including the design, integration, installation and commissioning services. It includes various subsystems such as an integrated fault management and service assurance platform based on Netcool suite and problem management from Micromuse, an IBM company.

"In Alcatel, we have found the right partner to help us optimize the cost of ownership of our network and fully streamline our operations through the automation of processes, which is essential to proactively address today's growing market", said Kamal Al Jebry, General Director of Yemen Telecom.


"This contract is a big step forward in our relationship with Yemen Telecom. It demonstrates that Yemen Telecom is placing its trust in Alcatel to assess its global needs and help them deliver advanced services. Through this contract, Alcatel strengthens its position in the Middle East as integrator of OSS/BSS solutions in multi-vendor networks", said Frederic Rose, President of Alcatel's integration and services activities.

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About Yemen Telecom
Yemen Telecom is the incumbent operator for fixed, data networks and one of the three mobile operators in Yemen, with more than 1 250 000 fixed lines, 350 000 Mobile users and 5 KPorts for ADSL. 100% of the subscribers are connected on digital exchanges and a national SDH transmission backbone on more than 10 000 Km of fiber optic, Yemen Telecom (100% state owned operator) provides fixed and mobile telecommunication services nation-wide, and international telecommunications services. While focusing on its core business for fixed and mobile telephony, Yemen Telecom had succeeded last year the fast deployment of ADSL services. http://www.yemen.net.ye

About Alcatel's Integration and Services activities
Alcatel offers a comprehensive portfolio of services to all telecom carriers (fixed and mobile) as well as to industries and public sectors (Energy, Transport, Public Sectors, Defense and Security). To meet the increasing demand from customers to have a strategic and flexible services partner, Alcatel's services cover both multi-vendor and multi-technology communication networks and are customized to the specific needs of the customer. Alcatel can take responsibility - locally and throughout the world - for some or all of the network design, build, systems and OSS integration, deployment, security, operation and maintenance. With its combined expertise in software integration, network operations, and telecom technology, Alcatel offers complete portfolio of OSS solutions (service fulfillment, service assurance, billing and customer care) built on best-in-class software vendors and adapted to the customer's information system and a full set of services covering the entire project life cycle. Alcatel helps the customer to streamline operations through the automation of critical business and operational processes, and to optimize a legacy environment while securing the introduction of new technology.

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 employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EURO 13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com

© Press Release 2006