PARIS, May 15 /PRNewswire-FirstCall/ -- Alcatel (NYSE: ALA; Paris: CGEP.PA) today announced that it has entered into a worldwide agreement with Video Furnace to resell its complete mission- critical, end-to-end solution for enterprise video-over-IP. The Video Furnace System will be sold, distributed, and supported globally through Alcatel distribution channels. Vertical markets today such as education, healthcare, and finance require future-proof, mission-critical applications such as video-over-IP for advanced learning, virtual classrooms, corporate communications, and live TV broadcasts while reducing costs associated with travel and training. This new Alcatel enterprise video-over-IP solution is a unique client/server offer that delivers live broadcast and on-demand TV-quality video services to any network connected viewing device, such as a notebook or desktop computer. A distinctive feature of the system is that it works on any Windows, Macintosh, or even Linux-based computer eliminating the media player management and compatibility headaches faced by IT staff. It also removes the need for users to install resident player software, browser plug-ins or hardware, which is an industry first. The Video Furnace System enables on- demand learning, virtual classrooms, event broadcasts, distance learning, and even on-demand entertainment capabilities that allow the secure distribution of standard TV/cable channels to classrooms, campus dorms and common areas. "Our students benefit from the Video Furnace applications that are available anywhere and any time over our Alcatel IP networking infrastructure," said Russell Leathe, Director of Networking and Computer Services, Gordon College. "What I like is that IT doesn't have to install any software on the end-user's computer, eliminating a large amount of support and roll-out issues." "Alcatel is pleased to offer the Video Furnace System solution along with our highly available and cost-effective Alcatel OmniSwitch solution, which supports video-over-IP with advanced QoS and multicasting capabilities necessary for data, voice and video applications," said Tom Burns, Senior Vice President and General Manager of Alcatel's enterprise network infrastructure activities. "Our customers will benefit from the highest quality video possible while maximizing the return on the IP infrastructure investment." "Alcatel's family of network infrastructure switches provides the availability, performance and quality of service required for our mission- critical enterprise video-over-IP applications," said Howard Weinzimmer, Video Furnace CEO. "Together with the Video Furnace solution, video becomes just another application on the network, letting students and faculty in schools, or executives and other employees in corporations, watch a variety of digitized content through the existing data network." About Video Furnace Video Furnace is a leading developer of mission-critical enterprise IP video solutions. The company has developed the only end-to-end solution that brings live and prerecorded video as well video-on-demand (VOD) to a computer without requiring the user to install any resident player software or hardware. Video Furnace's technical team has extensive experience in digital video delivery systems and the development of media, gaming and broadband video solutions. The company is headquartered northwest of Chicago. For more information about Video Furnace, please visit http://www.videofurnace.com/ 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, Tracy Dupree, N.A., +1-818-878-4408, or , or Regine Coqueran, HQ, +33-0-1-40-76-49-24, or , or Stephane Lapeyrade, HQ, +33-0-1-40-76-12-74, or ; or investor relations, Pascal Bantegnie, +33-0-1-40-76-52-20, or , or Nicolas Leyssieux, +33-0-1-40-76-37-32, or , or Maria Alcon, +33-0-1-40-76-15-17, or , or Charlotte Laurent- Ottomane, +1-703-668-7016, or , all of Alcatel Web site: http://www.alcatel.com/ http://www.videofurnace.com/

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