Alcatel Completes Acquisition of iMagicTV, a Leading Supplier in Broadband Video Solutions.

Business Editors/High-Tech Writers

DALLAS & OTTAWA--(BUSINESS WIRE)--April 30, 2003

Alcatel (Paris:CGEP.PA)(NYSE:ALA), the world leader in broadband access networking, today announced that, after finalizing all customary closing procedures, the acquisition of common shares of iMagicTV pursuant to a statutory plan of arrangement under Canadian law, has been completed. iMagicTV, with headquarters in Canada, was a publicly listed supplier of software products that enable service providers to create, deliver and manage digital television and rich media services over broadband networks.

The final exchange ratio used to exchange iMagicTV shares for Alcatel ADS (American Depositary Shares) shares was 0.158517, which equates to a value of US$1.30 per iMagicTV share. Alcatel acquired 20,826,362 common shares, representing 84 percent of the capital. Alcatel now holds 100 percent of iMagicTV's capital.

As the world market leader in Digital Subscriber Line (DSL), Alcatel is committed to solutions that further boost broadband growth across the globe. A significant part of this growth will come from value added services, examples of which are audiovisual entertainment, home security, online gaming, tele-learning and commerce. Through this acquisition, Alcatel is able to immediately extend its leadership in broadband access solutions and leverage a world class, ready-to-deploy solution for triple play (TV, Internet and telephone) broadband services.

iMagicTV's product line provides a reliable and proven path for IP (Internet Protocol)-based service providers towards delivering profitable media services. iMagic also will provide unmatched depth of field in proven back-end service provisioning capabilities, the stability of which is critical for service providers.

iMagicTV now will operate under the Alcatel name, and its Media Manager product will be marketed under the name Alcatel 5950 Media Manager. iMagicTV will benefit from Alcatel's leading position in ADSL, its strong customer and partner relationships, infrastructure and routes to market. The iMagicTV portfolio will find a worldwide channel alongside Alcatel's broadband portfolio for IP video solutions.

Through this acquisition, iMagicTV joins Alcatel Canada.

About Alcatel

Alcatel provides end-to-end communications solutions, enabling carriers, service providers and enterprises to deliver content to any type of user, anywhere in the world. Leveraging its long-term leadership in telecommunications network equipment as well as its expertise in applications and network services, Alcatel enables its customers to focus on optimizing their service offerings and revenue streams. With sales of Euro 16.5 billion in 2002, Alcatel operates in more than 130 countries. For more information, www.alcatel.com

A report in respect of the acquisition of the iMagicTV common shares will be filed with securities regulators in Canada, and contains additional information. A copy of such report, and further details of the transaction, may be obtained from Alcatel.