Boeing (NYSE: BA) has selected Alcatel Space, a
subsidiary of Alcatel (Paris: CGEP.PA and NYSE: ALA), for a multi-million
US dollar contract to build a digital radio broadcasting payload on behalf
of XM Satellite Radio Inc., the leading satellite digital radio broadcaster
in the United States. The payload will be built by Alcatel Space’s facility
in Toulouse, then integrated on a Boeing 702 platform in Boeing’s facility
in El Segundo, California. XM provides 100 channels of digital-quality
music and talk radio programming to subscribers throughout the continental
United States, via a fleet of two geostationary satellites and a network of
ground relays. “This contract consolidates Alcatel Space’ leadership in the
digital radio broadcast market,” said Pascale Sourisse, Chairman and CEO of
Alcatel Space. “Our flight-proven technologies and skilled teams ensure
that we will continue to earn the trust of Boeing. We are very proud of
this partnership, which started over five years ago.”Alcatel Space offers a
slate of competitive satcom solutions for the direct broadcast of video,
digital radio and webcasting services to million of fixed and mobile
terminals. The company’s comprehensive packages include ground and space
networks, calling on expertise built up through extensive work on the XM
Radio programs.

About Alcatel Space

Alcatel Space, a wholly-owned subsidiary
of Alcatel, is the world’s third largest satellite manufacturer and Number
1 in Europe. Deploying extensive dual expertise in civil and military
applications, Alcatel Space develops satellite solutions for
telecommunications, navigation, radar and optical observation, meteorology
and science. The company is also the leading European prime contractor for
earth observation, meteorology and navigation ground segments, and for
space system operation. For more information, visit the Alcatel Space web
site: www.alcatel.com/space

About Alcatel

Alcatel provides end-to-end
communications solutions, enabling carriers, service providers and
enterprises to deliver content to any type of user, anywhere in the world.
Leveraging its long-term leadership in telecommunications network equipment
as well as its expertise in applications and network services, Alcatel
enables its customers to focus on optimizing their service offerings and
revenue streams. With sales of EURO 16.5 billion in 2002, Alcatel operates
in more than 130 countries.