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Alcatel's multi service cross connect Lambda Gate under deployment by Deutsche Telekom

Highly scalable core cross connect protects network investments, facilitates growth in expanding networks

Paris,  July  2,  2002  - Alcatel (Paris: CGEP.PA and NYSE: ALA), the world leader  in  optical  networking  and  Deutsche  Telekom,  Germany's largest telecommunications  company, have signed  a contract to implement Alcatel's 1674  Lambda  Gate, in their national backbone infrastructure by the end of 2002.

A perfect fit for Deutsche Telekom's network architecture, the Alcatel 1674 Lambda  Gate  will  provide powerful design features to support the service provider's present and future bandwidth requirements generated by broadband traffic.  Its unique flexibility and highly scalable architecture allow for a cost-efficient in-service transition, from a  relatively small configuration to a multi-terabit solution.

"As  the nature of telecommunications is continuously changing, Alcatel has developed  a broad  range  of  products  to deliver feature-rich solutions securing a critical competitive edge for optical network providers", stated Jean-Marie  Vansteenkiste,  President  of  Alcatel's  terrestrial  networks activities.

The Alcatel 1674 Lambda Gate is the only system on the market today that is capable  of  managing over 2,000 STM-1 equivalents in a single node and the only  system  to  serve as a gateway between the SDH and Optical layers. In tandem  with  Alcatel's  industry  leading,  end-to-end  network management system  (NMS),  its  deployment  helps operators reduce their network total cost of ownership.

About Alcatel 1674 Lambda Gate
Addressing  core  transmission networks, the Alcatel 1674 Lambda Gate is an advanced  optical  multi-service  cross-connect  which bridges considerable distances and concentrates unique capacities in one single network element. The  system  has  been  developed  as a high-speed platform able to support massive  multimedia  information flows at transmission rates up to 10Gbit/s today  and  40Gbit/s  in  future.  Thanks to its flexible architecture, the Alcatel  1674  Lambda  Gate  can  evolve in a scalable way according to the operators' bandwidth requirements. Alcatel's  1674  Lambda  Gate  is the first system to fully support Optical Transport  Hierarchy  (OTH), thus providing a standardized multi-vendor and future-proof  platform  for  optical core networks. This capability enables network  operators  to  offer  consistent service level agreements to their customers,  along  all  types  of  services,  e.g.  SDH/Sonet  and  Gigabit Ethernet. At  the  edge  of the photonic core network, Alcatel's 1674 Lambda Gate can provide grooming functionality to optimize the utilization of large optical pipes.  These distinctive features allow carriers to optimize the potential of their network capacity, while reducing network operational costs.

About Alcatel
According to leading telecom market research firm RHK, Alcatel was the 2001 world  leader  in  global  optical transport - encompassing terrestrial and submarine  applications  -  with  17%  market share, in terrestrial optical transport  with  14.2% market share and in submarine optical transport with 41%  market  share,  an  unprecedented achievement in the telecom industry. Alcatel's  optics  business  comprises  optical components, optical fibers, SDH/SONET  and DWDM systems, cross-connects, microwave radio links, network intelligence, and services for both terrestrial and submarine applications.

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 Deutsche Telekom
Deutsche  Telekom is Europe's largest communications company and one of the largest  communications  carriers  worldwide based on 2001 revenues of 48.3 billion  Euro.  The  company  is  active in four key growth segments of the global  telecommunications  market:  mobile  communications, network access services,    consumer    Internet    services   and   integrated   IT   and telecommunications  solutions.  Through T-Mobile, Deutsche Telekom's mobile telephony  subsidiary,  and  through  other  subsidiaries  and investments, Deutsche  Telekom  today  serves  approximately 67 million mobile telephony customers worldwide. In 2001, Deutsche Telekom completed the acquisition of U.S.  mobile  telephony  companies VoiceStream Wireless  and Powertel Inc., forming  the first transatlantic wireless communications operator utilizing the  GSM  digital wireless technology standard. Deutsche Telekom offers its customers  a  complete  range  of  fixed-line  voice telephony products and services  through almost 57 million access lines. The company  is a leading provider  of  high-speed  digital  access lines, with about 2.2 million new asymmetric  digital  subscriber  line  (T-DSL)  services currently sold and about  20.4  million  channels using the information transfer standard ISDN (Integrated  Services Digital Network) as of year end 2001. T-Online is one of   the  leading  consumer  Internet  service  providers  worldwide,  with approximately    10.7   million   subscribers.   T-Systems   is    Europe's second-largest   provider   of   comprehensive  IT  and  telecommunications solutions  and  services  to  business customers in more than 20 countries.

For more  information about  Deutsche Telekom, visit
www.telekom.de/international.


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