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News Release: Alcatel and Pirelli team up to enable innovative enhanced multiple radio access

The digital transport module developed by Pirelli Labs to be integrated by Alcatel within its enhanced distributed multi-access Evolium™ base station

Milan, November 28th 2003 – Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced it signed an agreement with Pirelli to integrate the innovative optoelectronic module developed by Pirelli Labs and Telecom Italia Lab in its Evolium™ multi-standard Remote Radio Units solution. This solution will reduce costs and electromagnetic emissions of 3G networks. Evolving from a centralized Base Station platform architecture to the concept of multiple distributed radio access points all connected to one common central unit, the Alcatel Evolium™ multi-standard radio solution will integrate the optoelectronic module developed by Pirelli labs. It will allow a smooth physical split between the central unit and multiple remote radio access heads by using direct optical fiber transmission.

As a natural precursor of such initiatives as OBSAI* and CPRI**, the Alcatel Evolium™ multi-standard base station architecture already integrates today a digital interface between the Processing part and the Radio part.

Integrating the "Radio over Fiber" solution of Pirelli will provide Alcatel with a significant competitive advantage when compared with other available solutions in the marketplace, allowing increased cost efficiency and easier combination of multiple access technologies in mobile networks. In addition the Alcatel Evolium™ solution will make site acquisition a lot easier, allowing to re-use existing 2G sites for 3G, while simplifying the operation and maintenance of hybrid networks.

“This solution was developed thanks to intuitions and skill of our Labs: it’s a worldwide innovation and it represents first commercial product originating from the laboratories,” said Mr. Mauro Sacchetto, CEO of Pirelli Telecom Systems. “This new optoelectronic module, developed in strict cooperation with Alcatel, will enable mobile operators using Evolium™ solution to benefit from more efficient equipment, that will reduce costs, by containing electromagnetic emissions, with a good impact on the community."

Samy Gattegno, President and CEO of Alcatel Italia adds “This is a solution that will allow Alcatel to help mobile operators to expand their networks even in environments where the radiation are extremely low. The solution we developed together with Pirelli is an innovative response to the problems related to the environment impact and to the installation difficulties that, in some way, have slowed down network deployment. It also paves the way for future mobile networks combining multiple access technologies.”

Market analysis firms and the main mobile operators estimated the market of UMTS access networks in 500 million euros in the next three years, and some of the main international mobile operators have been interested by this new solution, which will be available on the market in 2004.

*Open Base Station Architecture Initiative
**Common Public Radio Interface

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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 network 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: www.alcatel.com.

About Pirelli
Pirelli is a global producer of Tyres, Energy and Telecommunication Cables and Systems. With more than 34,000 employees, 77 production sites, and total sales of 6.311 billion Euros at 31st December 2002, Pirelli is one of the world’s leading companies. It focuses its R&D, production resources and competencies on leading-edge technologies, as demonstrated by the advanced Pirelli Labs in the photonics and new materials fields and by MIRS – Modular Integrated Robotized System for tyres production.

Additional information on Pirelli Telecom Sytems is available at: http://www.pirelli.com/telecomsystems

Alcatel Press Contacts
Régine Coqueran / Alcatel HQ Tel: +33 (0)1 40 76 49 24 This email address is being protected from spambots. You need JavaScript enabled to view it.

Cristiana Polloni / Alcatel Italia Tel: +39 039 686 73 12 This email address is being protected from spambots. You need JavaScript enabled to view it.

Christine de Monfreid /MCG Tel : +33 (0)1 30 77 95 48 This email address is being protected from spambots. You need JavaScript enabled to view it.


Alcatel Investors Relations
Claire Pedini Tel: +33 (0)1 40 76 13 93 This email address is being protected from spambots. You need JavaScript enabled to view it.

Laurent Geoffroy Tel: +33 (0)1 40 76 50 27 This email address is being protected from spambots. You need JavaScript enabled to view it.

Pascal Bantégnie Tel: +33 (0)1 40 76 52 20 This email address is being protected from spambots. You need JavaScript enabled to view it.

Peter Campbell Tel: +33 (0)1 40 76 13 11 This email address is being protected from spambots. You need JavaScript enabled to view it.

Charlotte Laurent-Ottomane Tel: +1 703 668 3571 This email address is being protected from spambots. You need JavaScript enabled to view it.


Pirelli Press Contact
Ivan Dompé Tel: +39 02 85 35 42 70 This email address is being protected from spambots. You need JavaScript enabled to view it.


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