Paris, October 28, 2002 – The Ministries of Defence of France, Italy and the United Kingdom have jointly submitted an initial proposal to meet the NATO SATCOM Post-2000 capability requirement for SHF and UHF space segment. Alcatel Space, Alenia Spazio and Paradigm Secure Communications, as the national military satellite communication (Milsatcom) providers of these countries, have prepared major inputs to their governments in the submission of this innovative proposal.

As the current NATO IV satellites approach the end of their lives, having already exceeded expectations, NATO is now calling for a next generation solution to fulfill its ever-increasing milsatcom requirements. To ensure coherence with the changing NATO crisis management role and to provide a fully deployable communications capability in support of such operations, the SATCOM Post-2000 requirement will update both the space and ground segments to form the future NATO system.

NATO’s current procurement process entails the issue of separate Invitations for Bid (IFB) for the UHF, SHF and EHF space segment requirements. Draft SHF and UHF IFBs were released to participating nations for ‘bidders comment’ in January 2002, followed by final IFBs in July of this year. The European governements’ (with Alcatel Space, Alenia and Paradigm) IFB response has just been submitted. This will now be followed by reviews and discussions with the NATO C3 Agency and final bids are due in Spring 2003. In light of NATO requiring full on-orbit capacity by end 2004, a decision is expected in Summer 2003.

The 3 Nations procurement agencies: DGA for France, Teledife for Italy, DPA for the UK and industries have agreed to work together to offer NATO the optimum SHF and UHF milsatcom solution. The three companies, Alcatel Space, Alenia Spazio and Paradigm Secure Communications are key players in the European satellite industry and have been working closely together for a number of months. The project has further backing and support from each of these companies’ respective shareholders: Alcatel, BAE SYSTEMS, EADS and Finmeccania. The essence of this European solution is provision of SHF and UHF capacity from the present and future satellite systems of these nations.

Alcatel Space, Alenia and Paradigm are already in the process of providing next generation national milsatcom solutions, their offering is ideally placed to meet the NATO timescales requirement and all parties look forward to having the opportunity of working together on this exciting new programme.

About Alcatel Space

Alcatel Space, Europe’s leading satellite manufacturer and one of the three world’s leading prime contractors for both civil and military space systems, develops satellite technology solutions for telecommunications, navigation, optical and radar observation (Helios and Sar Lupe programs). Alcatel Space is also prime contractor for the new-generation Syracuse III military communications system which will give armed forces significantly higher performance, in terms of data throughput, operational flexibility and resistance to countermeasures and attack.

About Alcatel

Alcatel (Paris: CGEP.PA and NYSE: ALA) 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, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com.

About Alenia Spazio

Alenia Spazio S.p.A., a Finmeccanica Company, is active in telecommunications, remote sensing, orbital infrastructures and scientific satellites. Within the SITAB consortium, it has designed, developed and provided to the Italian MoD the SICRAL Military Satcom System, comprising space, control and ground segments as a turn-key System. Alenia Spazio is now working for the production of a second satellite to join SICRAL 1, already in service, and extend the SICRAL System present capability.

About Paradigm Secure Communications

Paradigm Secure Communications was earlier this year selected as preferred bidder for the UK MOD’s Skynet 5 military satellite communications service. The Paradigm team, led by Paradigm Secure Communications, was formed by Astrium in 1999. For Skynet 5, Paradigm Secure Communications will contract with Paradigm Services for full service delivery and Astrium for the Skynet 5 satellites and ground systems. Both Paradigm companies will become joint ventures between BAE SYSTEMS and EADS, European Aeronautic Defence and Space company on contract award.

Contact press@alcatel.com