AB Lietuvos Telekomas Deploys Alcatel's Optical SDH Transport Systems for New Metro Rings Build-Out.

Business Editors & High Tech Writers

DALLAS--(BUSINESS WIRE)--Nov. 19, 2002

Alcatel's Multi-Service Equipment to Accelerate Multimedia

Service Delivery in Lithuania

Alcatel (NYSE:ALA), the world leader in optical networking, and AB Lietuvos Telekomas, Lithuania's largest provider of telecommunication services, today announced the successful completion of the first phase of an expansion project covering the deployment of new data-aware metropolitan rings in Lithuania. Leveraging Alcatel's new generation synchronous digital hierarchy (SDH) technology, the project will enhance the capacity of AB Lietuvos Telekomas' existing network infrastructure. This implementation will allow AB Lietuvos Telekomas to meet Lithuanian business and residential users' growing requirements for broadband services, such as Fast Ethernet and business application services, as well as to efficiently support asymmetric digital subscriber line (ADSL) traffic.

The three-year agreement, signed in July 2002, calls for the implementation of Alcatel's world class Optical Multi-Service Node (OMSN) systems that are designed to address the transmission needs of both regional and metropolitan applications. Under the first phase, Alcatel has built up an SDH metro ring already carrying services in Vilnius, the country's capital. To provide interconnection with the existing national infrastructure, Alcatel also will supply its SDH multi-service cross connect, the Alcatel 1641 SX, that allows network capacity upgrades without any traffic interruption in metropolitan environments.

Their combined implementation will provide AB Lietuvos Telkomas with a 2.5 Gbit/s scalable transmission solution offering advanced optical networking features in terms of network capacity and protection. Furthermore, Alcatel will supply its integrated end-to-end network management solution to provide efficient control of the new rings, while imparting significant economics in operating the network.

"Alcatel's technology and feature-rich systems will give AB Lietuvos Telekomas access to a best-of-class and cost-effective transport platform," said Tapio Paarma, CEO and general manager of AB Lietuvos Telekomas. "This implementation will enable us to make a quality leap in our network's flexible expansion in response to future demands."

"We are very pleased that AB Lietuvos Telekomas has leaned on our world-class technological expertise to deliver to its customers new broadband communications benefits," said Jean-Marie Vansteenkiste, president of Alcatel's optical networks activities. "This project extends our long-lasting and successful cooperation with AB Lietuvos Telekomas."

Alcatel's relationship with AB Lietuvos further strengthens Alcatel's position in Central and Eastern Europe, which builds on the successful deployment of backbone and metro transport networks for major operators and utility companies.

About AB Lietuvos Telekomas

AB Lietuvos Telekomas is the largest telecommunications service company in Lithuania. Main areas of the company's activity include fixed telephony services, network and data communication services, Internet-related services, provision of wholesale services to other telecommunications operators and service providers as well as sales and maintenance of telecommunications equipment. More information about AB Lietuvos Telekomas is available at http://www.telecom.lt

About Alcatel's Optical Multi-Service Nodes

Designed for both metro and core applications, Alcatel's OMSNs provide world-class next-generation SDH functionality and capacity through aggregation of broadband multi-protocol traffic patterns. Their deployment allows operators of optical transport networks to achieve the optimal balance between new competitive service offerings and traditional revenue-generating services by introducing a wide variety of data managed services -- including top-level differentiated QoS capabilities, variable service rates and traffic congestion management. Supporting STM-4c, STM-16c and STM-64c concatenated payloads, OMSNs deliver integrated ATM and Packet Ring/MPLS switching, as well as LAN interfaces (Ethernet, Fast Ethernet and Gigabit Ethernet) by integrating ISA plug-in modules. Although configurable as add-drop-multiplexers, OMSNs have full cross-connect capability because of their symmetrical and scalable architecture. OMSNs are flexible for use in all network topologies -- that is, point-to-point, linear chains, multiple rings, meshed networks -- and ensure complete synergistic use of hardware items across the systems, from common parts to traffic ports. Additionally, they all have fully non-blocking SDH matrices (HO/LO) and support all standard PDH interfaces.

About Alcatel 1641 SX

The Alcatel 1641 SX multi-service metro gateway is a synchronous cross connect that lets operators add features and increase capacity under live traffic. The system performs cross connections between all types of PDH and SDH ports, helping provide the highest flexibility and performance for present and future network requirements. It offers a full range of SDH/SONET functionality, including multiplexing, grooming and segregation, protection and performance monitoring.

About Alcatel

According to leading telecom market research firm RHK, Alcatel was the 2001 world leader in global optical transport -- encompassing terrestrial and undersea applications -- with 17 percent market share, in terrestrial optical transport with 14.2 percent market share and in undersea optical transport with 41 percent market share, an unprecedented achievement in the telecom industry. Alcatel's optics business is composed of optical components, optical fibers, SDH/SONET and DWDM systems, cross-connects, microwave radio links, network intelligence, and services for both terrestrial and undersea applications.

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, Alcatel operates in more than 130 countries. For more information, http://www.alcatel.com.