Newfoundland and Labrador Hydro Relies on Alcatel's End-to-End Expertise for Microwave Radio Network; Canadian Utility Company to Benefit From Latest in Teleprotection Technology.

Business Editors & High-Tech Writers

DALLAS--(BUSINESS WIRE)--May 2, 2002

Alcatel (NYSE:ALA) has completed for Canadian utility, Newfoundland and Labrador Hydro, the East Coast Microwave Radio Project, an advanced telecommunications network infrastructure linking 13 locations on Canada's east coast.

The East Coast Microwave Radio Project is a state-of-the-art telecommunications network of high-speed data and voice links between the utility company's Energy Control Center and remote sites monitoring power delivery to its customers. This new infrastructure improves the reliability of the utility company's power system by upgrading teleprotection signals -- data circuits providing automated protection of the transmission lines, terminal stations and generating stations -- from analog to digital technology.

"The completion of the East Coast Microwave Radio Project is a significant milestone in delivering improved services to our customers," said Glenn Hicks, project manager, Newfoundland and Labrador Hydro. "Monitoring our infrastructure between the Energy Control Center and remote sites with the latest technology means that, in the event of system disturbances, our ability to restore power quickly to our customers is greatly improved."

Working closely with the utility company, Alcatel's end-to-end networking experience and technical expertise were essential to the successful planning, design and building of a premium quality and efficient microwave radio network.

To create a high-speed digital SONET radio backbone and asynchronous radio links between Newfoundland and Labrador Hydro's Energy Control Center and remote sites, the network integrates Alcatel's Microwave Digital Radio (MDR) products, the MDR-4000 and MDR-6000, and a fiber optic cable connection.

"Working with Newfoundland and Labrador Hydro, we are extending our experience in deploying turnkey solutions for telecom providers towards the utility sector," said Chris McGaffey, vice president for Alcatel's network services activities in Canada.

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

About Alcatel Services

To meet today's increasing demand for customized turnkey network solutions, Alcatel's services range from business and technology consulting, network design -- integrating Alcatel and third party equipment including operation support systems, implementation management up to technical network operation and maintenance services. Having successfully built Europe's and Latin America's largest optical backbones, deployed and integrated over 10,000 sites for major mobile networks in Europe, Asia and Latin America, and operating major networks world-wide, Alcatel's services expertise serves all telecom carrier segments. Alcatel Services also addresses the telecommunication requirements of non-carriers such as utility and oil & gas companies.

About Newfoundland and Labrador Hydro

Newfoundland and Labrador Hydro generates, transmits and distributes electrical power and energy to utility, residential and industrial customers throughout the province. Its power generating assets include eight hydraulic plants, one oil-fired plant, four gas turbines and 29 diesel plants. Each year, the Hydro Group generates more than 80 percent of the energy consumed within the province. With a workforce of about 816 employees, the corporation directly serves several large industrial customers in the province and more than 35,000 residential and commercial customers in rural Newfoundland and Labrador. Hydro also sells energy to an investor-owned utility that distributes electrical power to the balance of the province's population.