Alcatel completes its acquisition of Tele Danmark's marine division; Alcatel strengthens its unique marine installation and maintenance services for submarine networks.

Business Editors

PARIS--(BUSINESS WIRE)--Oct. 4, 2000

Alcatel, the world leader in optical networking, today reported the completion of Alcatel's previously announced acquisition of Tele Danmark's marine division.

Through this acquisition, Alcatel reinforces its marine capabilities for submarine networks by managing five cable vessels. Thus, Alcatel is in a position to offer unique installation and maintenance services to its customers.

Thanks to this acquisition, Alcatel handles five state-of-the-art vessels ideally suited to different kinds of submarine network operations, covering both cable installation and system maintenance. Based in Copenhagen, Denmark, and staffed with approximately two hundred people, this unit will become the key submarine network maintenance management center of Alcatel.

"The acquisition of Tele Danmark's Marine division shows Alcatel's willingness to directly manage its own fleet comprising of state-of-the-art cable vessels with a highly qualified crew," said Jean Godeluck, President, Alcatel's submarine network activity. "This will allow us to provide our customers with exclusive installation and maintenance services. This strategy has already proved successful with the contract awarded to us by 360networks for the maintenance of the 360americas network. The integration of the Tele Danmark's marine division provides us with a highly experienced team in the field of marine activities, a key asset in today's submarine network market to be able to serve our customers in due time and with the highest level of quality."

Involved in installation and maintenance of submarine fiber optic cables since 1853, the marine division of Alcatel's submarine network activity benefits from an expertise demonstrated by its comprehensive track record and an operational excellence well recognized in the industry. Working worldwide, today's Alcatel fleet comprises of eleven cable vessels. Two additional ships will be delivered during the first semester of 2001, confirming the expansion of the Alcatel's specialist fleet.

About Alcatel

In November 1999, RHK, a leading telecommunications analyst firm, said that Alcatel holds a 23% share - the number one position - of the world's total transport market, which comprises submarine and terrestrial transmission systems. RHK noted that Alcatel's market-leading 37% market share in the submarine networks segment helped secure the top position in the total transport market. In addition, RHK found that Alcatel commands a 37% share of the digital cross-connect systems (DCS) segment. Cross-connect systems contain the enabling technology for operators to offer high bandwidth services. Alcatel is also cited as the global leader in terms of DWDM market share for the global market encompassing both terrestrial and submarine applications.

Alcatel is the world leader in delivering full turnkey submarine network solutions and services. Alcatel leads this industry in terms of: - having the highest sold capacity up to 5.12 Tbit/s for the long-haul systems and 3.6 Tbit/s for the short-haul ones, using the latest DWDM technology; - having the largest manufacturing capacity at 85,000 km per year strategically located around the Globe; - managing 11 dedicated purposed-designed vessels for a tight control on the delivery schedule, including marine maintenance. Current contracts, worth US$ 4.5+ billion, include the most advanced undersea networks in the world today: Atlantica-1 and FLAG Atlantic-1 systems in the Atlantic, the FLAG Pacifc-1, Japan-US and Southern Cross transpacific systems, and the MAC and MAYA-1 systems in the Americas and the SAT-3 around Africa.

Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking 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: http://www.alcatel.com