Alcatel Sets The Cellular Standard With Product Innovations Showcased At Wireless '98.

ATLANTA--(BUSINESS WIRE)--Feb. 19, 1998--

Product Highlights In Network Management, Microwave Radios,

Cross Connects and Mobile Switching

Alcatel will showcase several product innovations in network management, microwave radio, cross connects and mobile switching for cellular operators at Alcatel's booth (#5207) during the CTIA Wireless '98 conference, February 23-25, at the World Congress Center in Atlanta. These technologies include new products and new product features designed to optimize efficiency and reliability in cellular network operations.

Network Bandwidth and Management Solutions

Alcatel will demonstrate its enhanced 1320 NM network management system for cellular environments. The Alcatel 1320 NM now operates in tandem with the Alcatel 1630 CSX/SX with "point and click" provisioning, and because it can view all elements in a cellular network, it reduces operational expenses by utilizing a central maintenance vehicle.

For Wireless '98, Alcatel is introducing two new cards for enhanced "far-end" and "near-end" performance monitoring features on its 1630 CSX and its sister product, the 1630 SX. The 1630 CSX compact digital cross connect and the 1630 SX both feature all of the industry's most advanced bandwidth management and performance monitoring functions with the industry's smallest footprint. The 1630 SX has a capacity of up to 128 DS3s (one DS3 equals 672 voice calls or data equivalents) and the 1630 CSX has a maximum DS3 capacity of 16 -- perfect for base station installation and operation.

Full-time performance monitoring simultaneously ensures the quality and continuous availability of circuits at both the switching center (near end) and remote call processing centers (far end) linked via an Alcatel 1630 CSX/SX. Wireless operators have the ability to collect far-end performance data via both ANSI T1.4303 and AT&T 54016 standards, to set individualized threshold crossing alerts and to program a variety of data storage registers with standard TL1 commands.

Switching, Transport and Access Solutions

Alcatel will showcase the enhanced 1000 S12 mobile switching center at Wireless '98, including the industry standard IS-634 radio-switch interface, part of Alcatel's open interface strategy. Prior to Alcatel's Wireless '97 announcement of its IS-634 open interface, operators were required to choose a single radio supplier because of a proprietary radio-switch interface, which proved increasingly restrictive and commercially untenable.

Alcatel's open interface approach gives radio manufacturers increased options when it comes to providing a total system solution to operators, allowing them a wider range of factors for choosing a subsystem, including price, performance and implementation time.

Alcatel's digital radios (Alcatel MDR-4000, 6000 and 7000) offer a more efficient use of bandwidth because of their ability to carry an increased number of calls with a higher system gain. Higher system gain means more secure connections for backhaul and interconnection between cell sites. Cellular operators can choose capacities ranging from three DS-3 to two DS-1(each DS-1 equals 24 voice calls or data equivalents) and perform in-service capacity upgrades on an as-needed basis.

Alcatel uses a technique called Trellis-Coded Modulation to achieve a more efficient use of available bandwidth in digital radios. Trellis-Coded Modulation allows for more available channels per incremental frequency than with other modulation schemes.

In addition, Alcatel's exclusive "capacity key" gives cellular operators an easy way to perform in-service capacity upgrades. A small sub-board mounted in the input/output and receive interface modules determines the radio's capacity. When a radio system requires a capacity upgrade, the operator simply swaps capacity keys to go from: 2 to 4, 4 to 8, 8 to 12, 12 to 16, or even 2 to 16 DS1s in just minutes.

Alcatel also will present its new LMDS radio, the Alcatel 9900 WW, which enables operators of new access networks to provide quickly and economically a wide range of voice and data communications services to business clients in urban or suburban areas. This high-capacity broadband access system uses point-to-multipoint radio technology, with high-speed time division multiplexing and packet switching, to offer unequaled capacity and functions including ATM (asynchronous transfer mode) and LAN-to-LAN connectivity. Since the announcement of the Alcatel 9900 WW in November, cellular operators already have begun examining Alcatel's LMDS solution to meet their potential needs for wireless broadband access.

Alcatel, the Telecom sector 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 radio communications, space, and defense systems. With operations in over 130 countries, Alcatel is a leading-edge supplier in the majority of its business. In 1997, the Telecom segment of Alcatel Alsthom registered total sales of FF 83 billion. For more information, visit Alcatel via the web at: www.alcatel.com. -0-

Contacts for Alcatel Alsthom Investor Relations (Paris): Anne GUIMARD, tel. [phone] or email: [e-mail] or Charlotte LAURENT-OTTOMANE, (33.1) 40 76 13 30 or [e-mail] Fax (for both): (33.1) 40 76 14 05 -- U.K. media contact: Barrington Lloyd International, tel. [phone] or [e-mail]

Visit Alcatel at booth # 5207 at Wireless '98

CONTACT: Alcatel, Richardson

Michael Newsom, 972/996-7896

Internet: [e-mail]

or

Michelle Rutledge, 214/443-7566

Internet: [e-mail]