Alcatel to Provide Internet Dial Access and Voice over IP Network Solution to Turk Telekom.

Business Editors & High Tech Writers

DALLAS--(BUSINESS WIRE)--Aug. 26, 2002

Alcatel (NYSE:ALA) has been awarded a contract by Turk Telekom for the deployment of an Internet dial access and Voice over IP (VoIP) network in Turkey. Alcatel's solution will enable Turk Telekom to provide new revenue-generating services in a multimedia environment.

Under the agreement, Alcatel -- the sole supplier for this project -- will provide a fully integrated solution including its Alcatel 5020 Softswitch and the Alcatel 5735 Service Management Center, supporting SIP protocol, and Commworks TC1000 Dial-IP/Media Gateways. This deployment will enable Turk Telekom to manage efficiently and cost-effectively the growing amount of Internet dial-up traffic in its traditional network. It will also enable smooth migration towards next generation networks (NGN) and offer additional services such as click-to-call, Internet call waiting, virtual second line and advanced call forwarding.

This project, which is a premiere in the region, will cover more than 100 locations throughout Turkey and will be deployed in four phases. Deliveries for the first phase will start this summer, and are expected to be completed by October 2002.

"This project reinforces Alcatel's leadership in providing powerful and reliable solutions to help incumbent operators migrate towards NGN," said Lutfi Yenel, chairman of Alcatel in Turkey. "The primary factor for this success is the strength of our Alcatel 5020 Softswitch family in terms of flexibility, modularity, open architecture and price competitiveness, enabling any type of multimedia services."

Alcatel's next generation solutions are currently deployed with 35 customers around the world; 20 NGN applications are in commercial deployment with 11 customers and 43 are in field trials.

About the Alcatel 5020 Softswitch platform

The Alcatel 5020 Softswitch is a carrier class, highly scalable softswitch that is deployed with major carriers in live networks on a worldwide basis. The Alcatel 5020 Softswitch supports IP off-load applications, providing Signaling System 7 connectivity and softswitch control for a wide variety of remote access servers, offering operators enhanced control and flexibility over their dial-up IP services and brings them considerable cost savings by off-loading IP traffic from the PSTN. The Alcatel 5020 Softswitch supports Voice over IP multi-media services such as click-to-call, Internet call waiting, virtual second line, video-telephony and advanced call forwarding. Taking advantage of the flexible and powerful VPN based routing mechanisms the Alcatel 5020 Softswitch enables carriers to deploy VoIP services for residential subscribers, and also in wholesale mode and for providing hosted services for enterprises.

About the Alcatel 5735 Service Management Center

The Alcatel 5735 Service Management Center is a carrier class, highly scalable service management platform that is deployed with major carriers in live networks on a worldwide basis. The Alcatel 5735 Service Management Center provides IP based session control, service management, VPN services, policy enforcement, subscriber management and accounting for dial-up access and DSL subscribers in a standard (internet service provider) and wholesaling model.

About Alcatel in Turkey

Alcatel has been present in Turkey since 1984. A major supplier of fixed and mobile networks, Alcatel has sales of about 200 million Euro in Turkey.

About Alcatel

Alcatel designs, develops and builds innovative and competitive communications networks, enabling carriers, service providers and enterprises to deliver any type of content, such as voice, data and multimedia, to any type of consumer, anywhere in the world. Relying on its leading and comprehensive products and solutions portfolio, stretching from end-to-end optical infrastructures, fixed and mobile networks to broadband access, Alcatel's customers can focus on optimizing their service offerings and revenue streams. With sales of Euro 25 billion in 2001 and 99,000 employees, Alcatel operates in more than 130 countries. For more information, http://www.alcatel.com