Dalton Utilities Selects Alcatel Fiber-to-the-User System; Northwestern Georgia City Utility Provides Broadband Voice, Video and Data Services to Residents and Businesses.

Business Editors/High-Tech Writers

DALLAS--(BUSINESS WIRE)--Aug. 26, 2003

Alcatel (NYSE:ALA), the worldwide leader in broadband access, and Dalton Utilities, a progressive municipal utility in Dalton, Ga., have reached a multi-million dollar agreement to deploy the Alcatel 7340 Fiber-to-the-User (FTTU) system in its broadband network.

The Alcatel 7340 FTTU system, using industry-standards-based Broadband Passive Optical Networking (BPON) technology, will enable Dalton Utilities to deliver superior voice, video and high-speed data services to its customers. The 7340 FTTU system maximizes Internet access by delivering it at speeds hundreds of times greater than traditional dial-up modems. Users are able to take advantage of emerging high-bandwidth services such as online gaming, music downloads, video-on-demand and high definition TV.

The decision to deploy the Alcatel FTTU solution builds upon Dalton Utilities' commitment to its customers. It is an ideal way to provide greater bandwidth capabilities and extended service offerings along with traditional utility and electrical services. In addition, advanced communications networks enable municipalities to more effectively compete for new businesses and improve quality of life for residents.

"In our efforts to be a good partner to the Dalton community, we want Dalton Utilities' presence to add value to our area and to promote its prospects for growth," said Don Cope, president and CEO, Dalton Utilities. "In today's environment, communications capabilities can make a significant difference in the future of a city such as ours. An advanced fiber-to-the-user-based network such as Alcatel is providing will position our area to excel in ways people could only dream of until now."

"Dalton Utilities joins a growing number of elite metropolitan utilities that have chosen to move forward with an FTTU network," said Mike Dobbs, senior vice president of Alcatel's Access Business in North America. "They made a thorough analysis of the advantages they will bring to their customers and their community, and now are taking steps to ensure they have the most advanced communications network available for their future."

For more information about the Alcatel 7340 FTTU solution, www.alcatel.com/fttu.

About Dalton Utilities

The vitality of Dalton, Ga., is a testament to community innovators past and present, who transformed a small Georgia town into the Carpet Capital of the World. At Dalton Utilities, innovators have continually met the needs of a burgeoning community. Providing safe, reliable and affordable utility services has been a cornerstone of Dalton Utilities' reputation since 1889.

About Alcatel

Alcatel provides end-to-end communications solutions, enabling carriers, service providers and enterprises to deliver content to any type of user, anywhere in the world. Leveraging its long-term leadership in telecommunications networks equipment as well as its expertise in applications and network services, Alcatel enables its customers to focus on optimizing their service offerings and revenue streams. With sales of Euro 16.5 billion in 2002, Alcatel operates in more than 130 countries. For more information, http://www.alcatel.com.