PRESS RELEASE

RATP selects Alcatel’s Train Control technology for the upgrade of its metro-line 13 in Paris

Paris, July xx, 2002 – Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been awarded a contract first to define and later to provide a complete Communications-Based Train Control (CBTC) solution to the Régie Autonome des Transports Parisiens (RATP) for metro-line 13 crossing Paris from Porte de Châtillon to Saint-Denis and Asnières. The four-year contract is worth 50 million Euros.

In order to increase the frequency, improve the safety, the reliability and the interoperability of its trains, RATP decided last year to upgrade the train control system on all its lines.  Live demonstrations of CBTC radio-based solutions from several international manufacturers were successful and the RATP decided to upgrade line 13 -- its most crowded, 22.5-km long line in Paris-- first.

Following a competitive tender, RATP selected Alcatel’s 6530 Seltrac (S30) to equip Line 13. Alcatel’s solution will reduce the headway (time between two consecutive trains) from 105 seconds to 90 seconds.  Seltrac S30 relies on logic block technology using radio data communications to optimize the train throughput. The system provides Automatic Train Operation (ATO) functions and continuous Automatic Train Protection (ATP). Moreover, its overlay modular design facilitates cost-effective deployment and system cutover, allowing mixed-mode operation and providing an evolutionary path to higher level functionalities including driverless operation.

The upgrade of the metro-line will be carried out during the night without interrupting the train service. Alcatel’s system can be overlaid on the existing train control system allowing the smooth cutover without impacting the operation.

André Pascal Director of Transport Systems Department for RATP said, "Our choice to partner with Alcatel for this first upgrade is based on the cost effectiveness of Alcatel’s open and modular solution and by their proven capability to manage large projects".

Jean-Pierre Forestier, President of Alcatel’s Transport Automation said, “We are pleased to extend our relationship with RATP and are committed to provide our highly advanced train control solution. Through this award, Alcatel strengthens its world leading position in advanced Communications-Based Train Control solutions equipping more than 500 km of metro-lines world wide”.

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..

About Alcatel Services

To meet today's increasing demand for customized turnkey 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.

Alcatel Transport Automation Solutions (TAS), part of Alcatel Services, is supplying worldwide train control, signaling, interlocking, control center and integrated rail communications technology. With a work force of 2,100 and sales of EURO 430 million, TAS operates mainly in Austria, Canada, France, Germany, Portugal, Spain, Switzerland, UK, and USA.

For Mass Transit operators globally, Alcatel’s offering includes SelTrac®, the world’s leading communications-based train control solution, NetTrac MT for central train management and supervision, and LockTrac MT, the world’s leading solid-state interlocking solution.

Contacts:

Jean-Paul Wajsbrot, General Manager, Transport Automation France

                        + 33 1.69.76.90.86, jean-paul.wajsbrot@alcatel.fr

Renaud Da,  Communication Director, Alcatel TAS HQ

+ 33 1 30 77 17 30, renaud.da@alcatel.fr