PARIS, June 8 /PRNewswire-FirstCall/ -- Alcatel (NYSE: ALA; Paris: CGEP.PA) today announced that it has been selected by Telefonica de Espana to provide access, aggregation and optical networking solutions, enabling Telefonica to offer high bandwidth interactive services to its consumer and corporate customers. The integrated and flexible architecture will provide higher bandwidth capacity per subscriber with unique differentiated quality of services, enabling the simultaneous delivery of personalized multimedia services such as IPTV, video on demand and HDTV to residential customers and advanced virtual private network services for its corporate customers. "We trust in the support of a strategic partner like Alcatel and its experience and leadership in the broadband market, to evolve our network towards the provision of innovative services that are demanded by our customers. Our objective is that they can all enjoy these high quality services," said Enrique Carrascal, Network General Manager of Telefonica de Espana. Michel Rahier, President of Alcatel's fixed communications activities stated: "Telefonica is leveraging Alcatel's unparalleled experience in triple play deployments worldwide. Our network infrastructure, based on industry- leading solutions and unique end-to-end integration capacity, is reinforcing Telefonica's advanced communication and entertainment services. This success also strengthens our position of partner in such strategic network transformations." For broadband access, Alcatel will provide its 7302 Intelligent Services Access Manager (ISAM) platform, the first high bandwidth IP access platform with xDSL interfaces ranging from ADSL 2+ to the latest VDSL2, and specifically designed to deliver a range of interactive services such as video on demand, IPTV, high-definition TV or high-speed Internet access to all users simultaneously. Telefonica will be able to offer any service from any equipment port, and will combine multiple real-time applications in the network with a guaranteed quality of service. In the aggregation network, the Alcatel 7450 Ethernet Service Switch will enable Telefonica to offer corporate access services and virtual private networks based on MPLS, on a national level. The solution's unique hierarchical quality of service (H-QoS) capabilities mean that Telefonica can differentiate the traffic it carries, guaranteeing varying classes of service levels, and optimizing bandwidth. As well, the Alcatel 7450 supports multiple service types with tremendous scale and quality of service, which guarantees that stringent Service Level Agreements (SLAs) on business-critical data applications can be met. For the transport network, Alcatel will provide its dense and coarse WDM optical networking equipment to deliver triple play services, Storage Area Network (SAN) extension and Gigabit Ethernet connectivity. Based on its 1692 Metrospan Edge and 1696 Metrospan, the Alcatel WDM solution enables to multiply up to 32 times the capacity of the rings to transport all types of signals with guaranteed security and quality of service. Alcatel is involved in more than 35 major triple play deployments and more than 40 network transformation projects worldwide and is the world leader in broadband access with more than 86 million DSL lines shipped worldwide. According to Synergy Research Group, Alcatel is #2 in the Services Edge Router category in Q1 2006, with a 18% market share and according to Ovum-RHK, Alcatel is the world leader in optical networking for the fifth year running with a 16% market share in 2005. About Alcatel's user-centric triple play To meet today's quest for increased personalized and interactive services, Alcatel helps worldwide operators transform their networks and deliver a new end-user experience. Alcatel's user-centric triple play builds on its leadership in broadband technology, IP networking, optics, new multimedia and video applications, as well as end-to-end services integration. End-users will enjoy unique, exciting services including video on demand, personal TV, community channels, online gaming and sharing of music, photos and home videos, all delivered simply and seamlessly via a range of devices and networks. Alcatel is currently involved in more that 35 triple play network projects worldwide including AT&T/SBC, BellSouth, France Telecom, Swisscom, Fastweb or Chunghwa Telecom. For more information: http://www.alcatel.com/tripleplay 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, +1-818-620-4743, or , or Regine Coqueran, +33-0-1-40-76-49-24, or , or Stephane Lapeyrade, +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.alcatel.com/tripleplay

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