PARIS, March 6 /PRNewswire-FirstCall/ -- Alcatel (NYSE: ALA; Paris: CGEP. PA) today announced that it has successfully completed contract negotiations with BT, confirming Alcatel's participation as one of the preferred suppliers to the operator's next-generation network transformation program -- the 21st Century Network (21CN). Alcatel will provide its 7750 Service Router and 5620 Service Aware Manager for 21CN's Metro node. The Metro node is a critical part of BT's 21CN and is the point at which traffic is intelligently managed, directed and delivered over the MPLS core. "Service and subscriber aware" switching is provided by these Alcatel solutions whereby traffic is assigned Quality of Service priorities based on the service to which it relates. The Alcatel 7510 Media Gateway and the 1300 Convergent Network Management Centre are also included in today's announcement. This will be critical for BT in providing the essential connectivity needed as traffic is migrated from the PSTN to the new IP network. BT Wholesale chief executive Paul Reynolds said: "With 21CN, BT and our suppliers are leading the world in next generation networks. Where we go with 21CN, others will follow, and the experience gained and expertise developed in this transformation of BT's network will set the standard for other NGN deployments. We're moving forward strongly with world class suppliers, and the first customers in the UK will start enjoying services over 21CN within 12 months." Jacques Dunogue, Alcatel Executive Vice-President Europe & South said: "By choosing Alcatel to provide them with part of their enabling telecoms infrastructure, BT is taking our long-standing relationship to new levels. Combined with our rapid rise to the number two position in the IP edge aggregation market, Alcatel starts 2006 with a strong market momentum in the IP network transformation arena." Alcatel's sales and support operations based in Newport and Maidenhead in the UK will work with BT and the other selected vendors to deliver 21CN. About BT BT is one of the world's leading providers of communications solutions and services operating in more than 140 Countries. Its principal activities include networked IT services, local, national and international telecommunications services, and higher-value broadband and internet products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale. In the year ended 31 March 2005, BT Group's revenue was pounds Sterling 18,623 million with profit before taxation of pounds Sterling 2,354 million. British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York. For more information, visit http://www.bt.com/aboutbt About Alcatel Alcatel provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EURO 13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com/ DATASOURCE: Alcatel CONTACT: press, Charlie Guyer, +1-978-468-0153, or , or investor relations, Charlotte Laurent-Ottomane, +1-703-668-3571, or , both of Alcatel Web site: http://www.alcatel.com/ http://www.bt.com/aboutbt

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