Telmex Awards 100 Meuro In Equipment Orders to Alcatel.

Business/Technology Editors

MEXICO CITY--(BUSINESS WIRE)--Aug. 1, 2000

Alcatel has received purchase orders totaling 100 Meuro from Telmex, Mexico's largest Telecom operator, for both fixed and mobile networks. With this contract, Alcatel will play a significant role in Telmex's major program to upgrade its networks and provide additional services to its customers by the end of 2000.

Under the contract, Alcatel will supply Alcatel 1000 S12 lines, trunks, PBAs, Outside Cabinets, Containers, ISDN Basic Access (BA) and ISDN Primary Access (PRA) for Telmex's 2000 Program. In addition, Alcatel will provide a software maintenance program to ensure that Telmex's network is at the cutting edge of telecom technology.

The program includes the introduction of new functions into the network, allowing Telmex to offer ISDN, videoconference calls, tripartite conference, call waiting, , calling line identification, malicious call identification, call forwarding on no reply and detailed billing services to their customers. The program also covers the maintenance and upgrade of Telmex's current network software, and will provide repair and training services as well as technical support.

At the end of 1999, Telmex defined its "20/20 Plan," with a particular commitment to modernize and evolve its network towards a Next Generation network while increasing its current capacity and national coverage. Telmex is committed to giving, 100,000 communities access to one or more of these new services when the Plan is completed at the end of 2000.

Telmex has achieved 20,382,540 subscribers at the end of the first semester of the year, six months before schedule and with 1.9% more subscribers. The figure comprises 11,495,112 fixed lines in service; 7,637,298 cellular subscribers; 721,497 equivalent lines for data transmission and 528,633 Internet access accounts.

With this program, Alcatel maintains its leadership position as supplier of switching equipment in the Mexican market.

About Telmex

Telmex is a world-class telecommunications company that provides total telecommunications solutions to its clients: local and long distance wire service, wireless communications, multimedia network for video, audio and data, network engineering, digital wireless network access, and Internet. Based in Mexico City, Telmex is currently positioned as the regional market leader in Telecommunications, with a presence in Mexico, the United States, Guatemala, Puerto Rico, and Brazil. Formerly owned by the Mexican Government, Telmex was privatized in 1990. With the participation of Carso Global Telecom and Southwestern Bell, Telmex is positioned to remain at the forefront of telecommunications in the Americas.

About Alcatel

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.