Company Press Release:
 
India's Tata Group expands its network with Alcatel's optical solution for mobile and broadband service delivery in USD 20 million project

Paris, June 14, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been selected by India's Tata Group to expand the existing optical multi-service network, thus enhancing the delivery of mobile and broadband services throughout the country. Extending Tata's existing network coverage to additional regions in the country, this USD 20 million project will deliver one of the largest network deployments in India.

Alcatel's solution will enable Tata to further enhance the roll out of CDMA mobile  services, as well as to support new broadband services and Ethernet applications  throughout  the  states  of Bihar, Haryana, Himachal Pradesh, Kerala,  Madhya  Pradesh, Orissa, Punjab, Rajasthan, Uttar Pradesh and West Bengal.  Additionally,  it  will  provide  a  highly efficient and reliable platform for the backhaul of traffic over Tata's existing mobile network.

The  expanded  optical  transport network will meet 70% of the transmission requirements  of  Tata  Teleservices  Limited  (TTSL) - the leading private telecom  operator  in  India, Videsh Sanchar Nigam Limited (VSNL) - India's leading   international telecommunications   service  provider  and  Tata Teleservices  Maharashtra  Limited  (TTML),  the  leading  telecom services
provider  in  Maharashtra.  TTSL,  VSNL  and  TTML are all part of the Tata Group.

Alcatel's   optical   multi-service   transport   solution   will  help  us significantly  enhance  the  transport  network  infrastructure in India to offer  freedom  of  service  accessibility  and further create value to our subscribers," said Mr. Darryl Green, CEO Tata Teleservices Ltd.

"India  is  a  rapidly  evolving  telecom  market with diversified customer requirements,"   said   Romano  Valussi,  President  of  Alcatel's  optical networking activities. "The capabilities offered by Alcatel's OMSNs and WDM equipment  allow  Tata  to  cope  with the new service needs of its growing subscriber base."

The  award  follows  the contracts signed in 2004 for the deployment of the existing  optical  transport network. Alcatel's optical networking solution include  its  data-aware Optical Multi-Service Node (OMSN) systems and 1696 MS  DWDM equipment, both managed by the 1350 management suite. Alcatel will be  also  responsible  for  the  complete  project management, engineering,
installation, service activation and commissioning.
 



About TTSL
Tata Teleservices (TTSL) spearheads the Tata Group's presence in the Indian telecom  sector.  Incorporated in 1996, the company was the first to launch CDMA  mobile  services  in  India  (in the Andhra Pradesh circle). With the acquisition   of   Hughes   Tele.com   (India),   now   Tata   Teleservices (Maharashtra),  in  December  2002,  the company swung into expansion mode.
TTSL  currently  offers  services under the brand name 'Tata Indicom' in 20 circles  in  India:  Andhra  Pradesh,Chennai,  Gujarat,  Karnataka,  Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal  Pradesh,  Uttar  Pradesh  (East),  Uttar  Pradesh (West), Kerala, Kolkata,  Madhya  Pradesh and West Bengal. TTSL, which heralded convergence
technologies  in  the  Indian telecom sector, is today the market leader in the fixed wireless telephony market with a customer base of over 8million.

About Alcatel's optical solutions
The  world  leader  in optical networking for the fifth year running with a 16%  market  share  in 2005 (Source: Ovum-RHK), Alcatel is spearheading the transformation  of  optical  transport to IP/Ethernet. Alcatel's end-to-end optical  portfolio supports a broad range of services and applications such as triple play, Gigabit Ethernet connectivity, Virtual Private Networks and 3G  mobile  backhauling. More than 700 customers in over 150 countries have deployed Alcatel's terrestrial and submarine solutions for fixed and mobile
applications  as  well  as in the transportation, power utility or research and education markets.

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 13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com