Paris, July 21, 2005 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced it has signed a multi-million Euro contract with Celcom, Malaysia's first mobile operator, to expand Celcom's GSM mobile network and upgrade it with an advanced Mobile Next Generation Network (Mobile NGN) solution. The Mobile NGN solution will substantially increase Celcom's ability to provide new multimedia services to its subscribers with optimized costs.



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This contract covers both radio access network and IP-based NGN solutions. Alcatel will also provide professional services such as network audit and optimization to improve network performance.

As a key element of the Mobile NGN solution, Alcatel is providing Celcom with its new generation Home Location Register (ngHLR). The HLR is the repository for all subscriber information and functions as the "knowledge center" in a network.

Once the project is completed, Celcom will be able to improve the quality of the mobile service it offers customers across the Malaysian peninsula as well as Sabah and Sarawak, expand coverage in urban areas, and address previously underserved rural areas.

This upgrade project is the latest in a series of mobile solution deployments Alcatel and Celcom have undertaken, and reinforces Alcatel's position as Celcom's leading partner for advanced network solutions.

"We have had a long standing relationship with Celcom and are in good position to add value to Celcom's business," Datuk Yusof Ampuan Kechil, Managing Director of Alcatel in Malaysia noted. "Our next generation network solutions are based on open standards and are software upgradeable which means we can enhance the quality of networks such as Celcom's today and then upgrade them quickly and efficiently to meet the needs and demands of customers tomorrow."

"We are delighted to partner with Alcatel once again, especially in this important project," Dato' Ramli Abbas, CEO of Celcom Malaysia Berhad said. "By expanding our network with Alcatel, we foresee that our service quality will be greatly enhanced."

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.

About Celcom (Malaysia) Berhad
Celcom (Malaysia) Berhad is now the country's most experienced and premier mobile cellular telecommunications company with 5.79 million customers. It currently has the most comprehensive network coverage covering 96% of the populated areas in the country. Celcom offers international roaming service in more than 90 countries over almost 200 networks worldwide. It currently offers mobile telephony services in Malaysia for postpaid and prepaid products under the 019 and 013 access codes. For more information on Celcom, log on to www.celcom.com.my

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 12.3 billion and 56,000 employees in 2004, Alcatel operates in more than 130 countries.

About the Alcatel 1430 new generation HLR (ngHLR)
The Alcatel 1430 new generation HLR has been designed to answer all the latest market requirements providing the best answer to operators with an advanced, innovative and open solution for the key knowledge center of their network. One of the key advantages of the Alcatel 1430 ngHLR solution is the ability to support multiple mobile/wireless user data-bases on a single platform, thus increasing performance and decreasing investments and operational costs. The Alcatel 1430 ngHLR performs 3 different functionalities of the Core Network: i) HLR function for 2G/3G Circuit and Packet Switched network; ii) Authentication, authorization and accounting (AAA) function for WLAN access; iii) IM-HSS function for IP multi-media (IMS) network. The benefit of Alcatel's ngHLR is that it can be easily enhanced and upgraded as it is based on open standards (e.g. Linux), is cost efficient as it can accommodate up to 9 million subscribers in one rack, and ensures quality performance as it supports 99.999% data availability.


Contact press@alcatel.com

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