Paris, October 10, 2005 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has signed a Euro 7.2 million (USD 8.8 million) contract to expand and upgrade the mobile network of CamGSM Co., Ltd. Cambodia's leading mobile operator. With this agreement Alcatel becomes CamGSM's sole supplier of radio network solutions.



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Thanks to its multi-standard Evolium® GSM/GPRS/EDGE solution, Alcatel will upgrade CamGSM's entire GSM mobile network with GPRS and EDGE functionality. Once the upgrade is complete, CamGSM will be able to offer users value-added services such as mobile Internet access, MMS, and gaming. Alcatel will also extend the mobile network to enhance coverage in key areas across the country in addition to deploying a microwave SDH backbone to increase capacity between the towns of Kampong Cham and Sihanoukville.

This contract reinforces Alcatel's position as world leader in the long-haul high-capacity market.

"We're pleased to continue working with our long-standing partner Alcatel," said David Spriggs, General Manager of CamGSM. "Alcatel has proven its ability in meeting our needs with scalable solutions that can be quickly deployed to meet subscriber growth. These solutions also enable us to optimize CAPEX, decrease OPEX and achieve a quick return on investment," he noted.

"We have been a partner of CamGSM for years and have always worked hard to deliver solutions that are optimized both technically and financially," noted Ludovic Duval, in charge of Alcatel's activities in Cambodia. "This extensive network expansion project is further evidence of CamGSM's confidence in our future-proof mobile network and applications solutions and an example of how we and CamGSM are working together to bring telecommunications services to as many Cambodian citizens as possible."

Alcatel has been a major solutions supplier to the telecommunications industry in Cambodia since the late 1960s. It has played a major role in Cambodia's implementation of a world-class telecommunications network since the 1990s, including helping to create the country's first modern digital switching center.

About CamGSM
Established in 1996, CamGSM Company Ltd. operates a GSM 900 and 1800 mobile network in Cambodia under the trade name of MobiTel. CamGSM is jointly owned by a leading Cambodian consortium, the Royal Group, and Millicom International S.A., a Luxembourg-based corporation with interests in cellular operators in 20 countries. MobiTel is the largest Telecom Service provider in Cambodia with coverage in all provinces of Cambodia.

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.


Contact press@alcatel.com

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