Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced the signature of a new 150 million US dollar contract with Embratel’s satellite arm, Star One, the largest satellite solutions company in Latin America, for the construction of the satellite Star One C2 for South America, Mexico and Florida. It is the second satellite that Alcatel will build for the Brazilian operator.

Based on Alcatel Space Spacebus 3000B3 platform, Star One C2 satellite will be delivered in 24 months and positioned at 65° West. This second satellite in the C series will be fitted with 44 transponders, 28 C-band and 16 Ku-band and 1 X-band. Star One C2 will replace the Star One B2 satellite in the C band for direct TV broadcasting over south America, Mexico and Florida (US) and will provide new optimized capacity in Ku band for telephony and trunking transmissions over two coverage zones: Brazil and Mexico.

Star One C2 will be assembled and integrated in the clean rooms at Alcatel Space’s Cannes and Toulouse plants in southern France. It will weigh about 4,100 kg at launch, and its solar panels will provide 8.5 kW of electrical power.

Edson Soffiatti, executive director of Star One said: “This new satellite marks the concrete implementation of our vision towards our geographic expansion and reinforcing our position as the largest satellite solutions company in South America”.

Following the contract signature, Alcatel Space President and CEO Pascale Sourisse said: ” With this new contract, Alcatel Space is pleased in offering Embratel a new generation of satellites”.

About Embratel

Embratel offers complete telecommunications solutions for all Brazilian market, including local telephony, national and international long distance, data transmission, video and Internet, besides assuring coverage anywhere in the country through satellite solutions. Star One is Embratel’s satellite arm and the biggest company in Latin America focused on satellite solutions.

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. Alcatel Space is today leading Eurely, the European consortium bidding for the Galileo concession. For more information, visit the Alcatel Space web site:

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 12.5 billion in 2003, Alcatel operates in more than 130 countries.