Madrid, Spain, October 4, 2005 — Alcatel (Paris: CGEP.PA and NYSE: ALA) today launches two new IPTV applications. The Alcatel 5900 AmigoTV application and the Alcatel 5900 MyOwnTV application will enable service providers to offer personal TV services to their customers. These applications — which combine content delivery, voice services and interaction — are designed to allow consumers to enrich their TV experience with personal and community-of-interest based content. Built upon the Microsoft TV IPTV Edition software delivery platform, these user-centric triple play applications will be available in the first quarter of 2006.

Alcatel’s MyOwnTV application provides a set of tools that service providers can deliver to consumers interested in creating their own “TV channel”. End users can then invite family and friends to tune into their own channel to share family photos, videos and other personal content. TV viewers can now become commentators, actors, directors and even content creators. In addition to individuals, local governments, small to medium-sized enterprises (SMEs) and retail stores can use MyOwnTV to distribute compelling multimedia content to a targeted audience via the TV.

Alcatel’s AmigoTV application enhances the TV experience by offering a number of interactive services to TV viewers. For example, AmigoTV allows you to invite friends to join you as you watch a program in a virtual living room — even though you live hundreds of miles apart. AmigoTV also provides a variety of tools that enable communications such as voice conferencing, sending text messages and on-screen animations called emoticons to friends and family around the world.

“The trend toward personal content creation is driven by the widespread adoption of digital photography and video cameras. Using MyOwnTV, it is easy for consumers to share their personal multimedia content with friends and family. In other words, users can create their own TV channel and invite people to tune in ”, says Michel Rahier, President of Alcatel’s fixed communications activities. “AmigoTV will forever change the TV experience, making it more user centric by giving viewers the opportunity to become involved, thus transforming TV viewing into a social experience.”

"IPTV is not just about distributing content. Adding interactivity and communications services is what will make it fly. Applications like AmigoTV and MyOwnTV offer great potential for service providers to create a rich TV experience for consumers," said Anette Schaefer, Director of Broadband & Media, Yankee Group EMEA. "Our 2005 European Connected Consumer Survey, found that these services are appealing to broadband users. In fact, 32% of respondents found interactive services "somewhat" or "very" appealing and 53% were interested in on-demand programming."

"We are witnessing a rapidly evolving television landscape, with the development of personalized services that enable TV viewers to decide the programs they want to watch, when they want to watch and on which home device," said Philippe Bailly, managing director of consulting firm NPA Conseil. "The popularity of personal video recorders and video on demand services is a key element influencing media consumption in the USA. This evolution of personalized TV is now in full bloom in the UK and is gaining traction in mainland Europe."

Visit Alcatel in booth 6017 to experience live demonstrations of our end-to-end triple play solution, including AmigoTV and MyOwnTV, all running over an all-Alcatel network infrastructure. Other demos will focus on the enhanced user experience delivered by Alcatel and Microsoft TV, including broadcast TV with instant channel changing, DVR functionality (such as pausing or rewinding live TV), video on demand (VoD) and much more.

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, way better 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.

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 12.3 billion and 56,000 employees in 2004, Alcatel operates in more than 130 countries.

For more information, visit Alcatel on the Internet: http://www.alcatel.com Alcatel Press Contacts Aurélie Boutin / HQ Tel :+ 33 (0)1 40 76 11 79 aurelie.boutin@alcatel.com Mark Burnworth / HQ Tel :+ 33 (0)1 40 76 50 84 mark.burnworth@alcatel.com Alcatel Investor Relations Pascal Bantegnie Tel : +33 (0)1 40 76 52 20 pascal.bantegnie@alcatel.com Nicolas Leyssieux Tel : +33 (0)1 40 76 37 32 nicolas.leyssieux@alcatel.com Maria Alcon Tel : +33 (0)1 40 76 15 17 maria.alcon@alcatel.com Charlotte Laurent-Ottomane Tel : +1 703 668 3571 charlotte.laurent-ottomane@alcatel.com