Alcatel Awarded Major Broadband Infrastructure Contract in Malaysia; Telekom Malaysia to Deploy Alcatel Core ATM Switches for Malaysia's 'Multimedia Super Corridor'.

KUALA LUMPUR--(BUSINESS WIRE)--Oct. 23, 1997--Telekom Malaysia has chosen Alcatel, through its Alcatel Data Networks unit, for the provision of its nationwide Asynchronous Transfer Mode (ATM) backbone.

Alcatel will initially provide 16 Alcatel 1100 HSSO Series 1000 ATM backbone switches, as well as engineering services to Telekom Malaysia. The network will be among the largest operational in the world -- and will support the most sophisticated multimedia applications.

Several switches will be installed in the Multimedia Super Corridor (MSC), Malaysia's bold initiative to become Asia's technology hub. The network will be Asia's largest broadband infrastructure and one of the most advanced in the world.

"We are extremely proud to have been selected to partner with Telekom Malaysia to supply our Alcatel 1100 HSS networking solutions in one of the fastest growing, and most important regions of the world," said Jean-Luc Abaziou, president and chief operating officer for Alcatel Data Networks. "Malaysia is leapfrogging past all existing communications infrastructures with its 'Vision 2020.' We are honored that Alcatel will be part of the world-class team helping to achieve this goal, which when completed, will undoubtedly serve as the new standard that others will emulate."

The Telekom Malaysia contract reinforces Alcatel's extensive involvement in helping to build Malaysia's broadband superhighways and data networks. In 1996, Alcatel installed a Frame Relay/ATM infrastructure for GITN (Government Integrated Telecommunications Network) in order to interconnect all Malaysian government agencies, and in 1993, it supplied Telekom Malaysia with a nationwide data communications network, MAYPAC. Over the last several years, Alcatel has established itself as the premier partner for the development of Malaysia's telecommunications' infrastructures. In addition to broadband backbones, Alcatel has supplied fixed and mobile networks (GSM 1800), SDH transmission backbones, microwave relay systems and business systems.

Separately, Alcatel announced that Unitele (Universiti Telekom) will receive a multiservice frame relay and ATM network switch (the Alcatel 1100 HSS Series 700) for the purpose of research work at the university. The provision of the switch is part of the Memorandum of Understanding (MoU) signed in June 1997 with Unitele, which is responsible for setting up the Multimedia University in Cyberjaya. The MoU also foresees the sponsorship of a Multimedia Chair, the provision of proprietary equipment for R&D activities, the awarding of scholarships, and the access to some of the most advanced research and training centers in Europe.

In line with the MSC development, Alcatel had announced in May, 1997, that it would set up a regional competence and support center for all multimedia networks that are or will be installed in Asia. The new center is to be staffed with highly skilled engineers in multimedia and broadband and will be located with the new headquarters of Alcatel in Malaysia, in the Corridor. Alcatel is one of the 41 founding members of the MSC. The company was given the Pioneer Blue Helmet by Malaysia's prime minister Dr. Mahathir during the ground-breaking ceremony of the Multimedia Super Corridor in Cyberjaya (May 17, 1997).

Alcatel, the Telecom segment of Alcatel Alsthom, designs, manufactures and markets complete telecommunications systems. Activities include fixed switching networks, transmission systems, access systems, mobile communications infrastructure, business networking, submarine cable networks as well as radiocommunications, space and defense systems. With operations in over 130 countries, Alcatel is a leading-edge supplier in its business. In 1996, the Telecom segment of Alcatel Alsthom registered sales of FF 71 Billion (US$ 13.65 Billion). For more information, visit Alcatel at: www.alcatel.com .

Alcatel Data Networks is a leading provider of data communications solutions for public and private networks throughout the world. The company, which is headquartered in Ashburn, Virginia, has built more than 400 major data networks worldwide, including 65 national carrier networks. Alcatel Data Networks is a joint venture company of Alcatel Alsthom, one of the world's largest manufacturers of communications equipment, and Sprint, the first all-digital network operator and provider of one of the world's largest Frame Relay network services. Alcatel Alsthom (ALA) and Sprint (FON) are publicly traded on the New York Stock Exchange (NYSE). Company news and product information are available at Alcatel Data Networks' World Wide Web site: http://www.adn.alcatel.com .

Company news and product information are available at Alcatel Data Networks' World Wide Web site: http://www.adn.alcatel.com . -0-

The Alcatel 1100 HSS is a registered trademark of Alcatel Data Networks.

CONTACT: Alcatel Data Networks

Katie Sheldon Hammler, 703/724-2249

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