Paris, July 1, 2003 – Nanjing Toptry China-Spacenet Co. Ltd, a broadband
access service provider in Peoples’ Republic of China, has granted a
multi-million US dollar contract to Alcatel (Paris: CGEP.PA and NYSE: ALA),
for the turnkey delivery of a ”DSL in-the-Sky” broadband access network,
including a satellite gateway, Customer Premise Equipments (CPEs) and a
comprehensive network management platform.

The network, to be delivered by Alcatel before year end, will be used by
Nanjing Toptry China-Spacenet Co. Ltd to develop its broadband service
provider business over China by offering Internet web browsing, Virtual
Private Networks (VPNs) and e-learning services to thousands of schools and
small and medium-sized enterprises (SMEs) in rural areas.

The Alcatel Space “DSL in-the-Sky” solution, based on the DVB-RCS standard
supported by a number of CPE vendors, seamlessly integrates with DSL
networks and management solutions proposed by Alcatel. It offers key
services differentiators such as Quality of Service/Service Level
Agreements and VPN support.

Alcatel China Chairman and CEO Dominique de Boisseson said during the
contract signing ceremony, “I would like to express our thanks and respect
to Toptry for its deep trust and unique vision, which is key for our
cooperation. I am sure that our common understanding will lead to a long
cooperation, enriching people’s lives in China.”

He added: “Through this, we will also be able to help with the west
frontier development program. Overall, this cooperation will lead to a
great expansion of communications in China by providing a satellite
solution, which will allow people in the remote areas to get access to
state-of-the-art satellite technology, and the communication systems in the
urban areas to have a flexible back up.”

As part of the turnkey contract, Alcatel will provide the on-site network
installation/ commissioning service and customer support through its local

About Nanjing Toptry China-Spacenet Co., Ltd
Nanjing Toptry China-Spacenet Co., Ltd is a Jiangsu-based broadband access
service provider and has extensive experience in consumer product
manufacturing, distribution, customer sales and services, and has further
expertise in enterprise network integration and installation.

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 website:

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. Alcatel operates
in more than 130 countries, and posted sales of 16.5 billion euros in 2002.

Alcatel has been established in China since the early 80s, with a full
portfolio of telecom equipment activities. In 2000, Alcatel made history
as the first multinational to set up its Asia Pacific headquarters in
Shanghai. In 2001, Alcatel and China’s Ministry of Information Industry
(MII) signed an agreement to create the first foreign-invested Company
Limited by Shares in the country’s telecom sector, Alcatel Shanghai Bell,
integrating Alcatel’s key operations in China with Shanghai Bell. Alcatel
Shanghai Bell was officially launched in May 2002 and is the leading
Chinese telecom technology vendor.