Alcatel and Samsung Telecommunications Offer Fully-Integrated IS-634 Architecture for Wireless Communications Networks.

DALLAS and RALEIGH, N.C.--(BUSINESS WIRE)--May 19, 1998--Alcatel and Samsung Telecommunications today announced the completion of joint integration testing of their cdmaOne (tm) IS-634 wireless network system, now ready for immediate delivery. The system features Samsung's PicoBTS (tm) base transceiver station and base station controller (BSC) fully integrated with the Alcatel 1000 S12 mobile switching center (MSC) via the industry-standard IS-634 open radio-switch interface.

This newly-introduced system provides wireless service operators with an integrated solution based on an open architecture and the use of industry standards at key interfaces. Instead of being locked in to proprietary switch-based interfaces, this new architecture gives carriers the flexibility to "mix and match" the network elements that best suit their needs.

"We believe in giving carriers the freedom to choose the infrastructure components that best suit their networks, and not locking them into proprietary systems," said John Kavulich, manager of CDMA products for the Wireless Systems division of Samsung Telecommunications. "Samsung now offers a total systems solution with a winning combination of performance and price for operators who need deployment flexibility."

"Alcatel has put another piece of its emerging PCS (personal communications services) strategy in place by completing this joint integration testing," said Dwayne Ballew, VP/GM of switching products for Alcatel. "Wireless service providers have been held hostage by their infrastructure system supplier because of the proprietary interface between the radio and switching components of the system. Incorporating another manufacturer's radio components because of improved price or performance was not an option unless the operators were prepared to swap out the entire network. Now, if they use our switch, they can 'mix and match' their radio components, based purely on technical and business considerations."

Other components of Samsung's integrated wireless system include all of the network elements required for PCS operators, including indoor and outdoor Base Transceiver Stations (BTS), Base Station Controllers (BSC), Base Station Management System (BSM), and a full range of CDMA subscriber handsets.

Since announcing the availability of its IS-634- and CDMA-based mobile switching product at the PCS '97 conference in Dallas, Alcatel has been lining up CDMA base station subsystem (BSS) suppliers as potential customers for its new product. Samsung now joins this group of BSS suppliers embracing the open IS-634 interface and committing to use the Alcatel MSC in its wireless systems solutions.

The Alcatel MSC incorporating IS-634 is based on the Alcatel 1000 S12 digital switching platform, which already provides switching functionality for more than 170 million trunk and subscriber lines around the world. Alcatel has the largest installed switching base of any telecommunications equipment supplier. (Alcatel Press Release Reference 98-20)

Alcatel 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 $14.2 billion (FF 82.9 billion). For more information, visit Alcatel via the web at: www.alcatel.com or www.ans.alcatel.com (U.S. site).

Samsung Telecommunications America, a Dallas-based subsidiary of Samsung Electronics Company, researches, develops and markets telecommunications and data communications systems and products throughout North America. STA has five main business groups: Wireless Systems, Wireless Terminals, Networks, Business Communications, and Office Automation.

Samsung Electronics Company, Ltd., a $19 billion flagship company of the Samsung Group, is a worldwide producer of telecommunications systems, consumer appliances, A/V equipment, computers, printers, and semiconductors. The Samsung Group is the 14th largest company in the world, with revenues in excess of $93 billion.

Contact for Alcatel Alsthom Investor Relations (Paris): Charlotte Laurent-Ottomane, (33.1) 40 76 13 30 or [e-mail] (Fax): (33.1) 40 76 14 05.

UK media contact: Barrington Lloyd International, tel. [phone] or [e-mail]

CONTACT: Alcatel

Mark Burnworth, 972/996-5986

E-mail: [e-mail]

or

Samsung

Melanie Ofenloch, 214/443-9901 ext. 5423

E-mail: [e-mail]