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Telmex selects Alcatel's software platform to provide advanced services

Contract with Mexican carrier paves the way to Next generation Network solutions

Paris,  July  3, 2002 - Alcatel (Paris: CGEP.PA and NYSE: ALA) has signed a major contract with Telmex, Mexico's largest incumbent operator, to upgrade its  current  fixed  network  in  Mexico enabling the provision of advanced network services by the end of this year.

The  agreement covers the hardware and software upgrades of all the Alcatel 1000  switches currently installed in the operator's network. This solution provides  new state-of-the-art functionality such as V5.2 interfaces, STM-1 terminations  and Voice over ATM gateways and allows Telmex to increase its service  offering  potential  while  safeguarding its current voice network infrastructure.

This  new  platform  deployment  in  Telmex'  network  will pave the way to further  introduction  of Alcatel's next generation network solutions, such as access platforms, softswitches and media gateways.

Jaime  Chico  Pardo,  general  director  of  Telmex,  stated: "Telmex has a commitment  with  its  customers to offer products and services that exceed their  expectations.  Alcatel  contributes  to  our  effort to increase our network capacity for the benefit of our clients throughout the country".

Angel  Gutiérrez,  general manager of Alcatel Mexico, added: “This contract represents  a major milestone for Alcatel and confirms its leading position in the Mexican market.”

Alcatel's   current   installed   base  in  Mexico  amounts  to  9  million terminations, representing a 43% share of the local fixed market.

About Alcatel 1000 switching systems
Alcatel  1000  is  a  powerful  switching  platform  with fully distributed processing  and  control  offering  state of the art functionality (as V5.2 interfaces,   integrated  STM-1  terminations,  integrated  VoATM  gateway, Internet  traffic  by-pass  for  access  nodes  and  V5.2). It has a unique architecture,   providing   both   network  operators  and  end-users  with reliability  and  quality of service for voice and multimedia applications. Due  to  its  high  modularity, Alcatel  1000 is a cost-effective solution throughout  the  range  from  very  small  to  large  exchange  sizes. The feature-richness  software package is suited in a rapidly changing business and  multi-vendor environment. The Alcatel 1000 systems are present in more than 145 countries and total more than 300 million terminations.

About Alcatel
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 Telmex
Telmex  is  a  world-class  telecommunications  company that provides total telecommunications  solutions to its clients: Local and long distance wired service,  wireless  communications, multimedia network for video, audio and data, network engineering, digital wireless network access and Internet. Telmex  is  the leading telecommunications company in Mexico with more than 13.4 million telephone lines in service, 1 million 574 thousand data lines, 913,127 Internet accounts and with a 68,000 kilometer fiber optical digital network at the end of 2001. Visit
www.telmex.com.


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