Alcatel Equipment Chosen by BellSouth to Complete 100 Percent Build-Out of Mississippi's DSL Central Office Network.

Business Editors/High-Tech Writers

DALLAS--(BUSINESS WIRE)--Aug. 13, 2003

Alcatel (NYSE:ALA) announced today it will provide DSL (digital subscriber line) equipment to BellSouth to complete 100 percent coverage for all of BellSouth's central offices in the State of Mississippi. Alcatel will supply the Alcatel 7300 Advanced Services Access Manager (ASAM) DSL platform to BellSouth to equip and enable the remaining BellSouth central offices in Mississippi with DSL.

"BellSouth is deploying DSL capabilities to 100 percent of its Mississippi central offices as a result of the leadership shown by the Mississippi state legislature," said Bill Smith, chief product development and technology officer of BellSouth. "Now, more businesses and households will have access to the speed and power of broadband by way of this increased deployment. BellSouth currently leads the industry in DSL deployment with more than 70 percent of its nine-state region having access to DSL service."

DSL is a very competitive alternative to cable broadband, and significant advances in technology now allow for simple provisioning and installation. More Mississippi customers will have increased access to BellSouth(R) FastAccess(R) DSL Internet service as a result of this additional build-out.

"Alcatel fully supports BellSouth's campaign to outfit its remaining DSL central offices in Mississippi with our industry leading 7300 ASAM equipment," said Michel Rahier, president of Alcatel's fixed networking activities. ""BellSouth FastAccess DSL is the foundation for the delivery of enhanced, value-added services to both business and residential customers. Mississippi businesses will benefit from the productivity gains brought by faster connections to teleworkers and IP (Internet Protocol) voice. For residents, this DSL rollout will mean greater access to multimedia applications, distance learning and other enhanced lifestyle activities."

DSL is a high-speed data service that uses an existing phone line to the home or business. Easily self-installed, DSL enables faster transfer of video and data, while simultaneously allowing for voice communication. With 37.7 percent of the global DSL market (based on May 2003 data from industry analyst Dell'Oro Group), Alcatel leads the industry, and remains committed to enabling broadband growth around the world.

For more information on Alcatel DSL, www.alcatel.com/dsl

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, http://www.alcatel.com.