Alcatel Wins a Turnkey GSM Contract in Kenya.

Business Editors/High-Tech Writers

DALLAS--(BUSINESS WIRE)--July 11, 2000

KenCell, a subsidiary of Vivendi Telecom International (Vivendi Group) and of Sameer Investment Ltd (the most important private investment group in Kenya), has awarded Alcatel (NYSE: ALA) with a five-year contract for a turnkey Global System For Mobile Communications (GSM) network. The contract foresees, in a first phase, the installation of a network to cover Kenya's two most important cities, Nairobi and Mombassa. This initial network will be installed during the summer 2000. Kenya is a country where Alcatel had, until now, a relatively limited presence.

Alcatel will first supply an EVOLIUM GSM mobile network featuring a 50,000 subscriber capacity mobile switching center, an operation and maintenance center and base stations. To meet the needs of Kencell's subscribers, Alcatel also will deliver an intelligent network platform capable of offering value-added services such as prepaid card.

The network will provide mobile telephony services to more than 3.5 million people - more than 10% of the country's population. Extension programs are planned starting at the end of 2000 to meet the needs for enhanced coverage and traffic development.

Gerard Dega, Alcatel's president for Africa, the Middle East, Central Asia, the Indian sub-continent and France, said, "We are confident that mobile telephony will expand rapidly in Kenya, and we are fully committed to supplying the best available GSM network solutions to offer subscribers unsurpassed quality of service."

About Alcatel

Alcatel builds next generation networks, delivering integrated end-to-end voice and data communications solutions to established and new carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of Euro 23 billion in 1999, Alcatel operates in more than 130 countries. For more information visit Alcatel on the Internet at http://www.alcatel.com.