Paris, April 25, 2006 - Alcatel (Paris: CGEP.PA et NYSE: ALA) and its partners welcome the recent decision by the French Agency for Industrial Innovation's (AII) Steering Committee to support the "Unlimited Mobile TV" program, one of the new AII-sponsored programs to boost industrial innovation.

The  goal  of  the  "Unlimited  Mobile  TV"  program  is to make television ubiquitously   available   on   mobile   phones  and  PDAs  throughout  all geographies,  including inside buildings, with a wide range of programs and excellent image quality, regardless of the number of viewers simultaneously watching  the same program. This universal coverage is made possible thanks to   the   unique   combination  of  country-wide  satellite  coverage  and terrestrial mobile networks for dense city coverage and interactivity.

As the project leader, Alcatel federates companies like Sagem Communication (SAFRAN  Group) and Philips, as well as several innovative SMEs: DiBcom, an expert  on  integrated  circuits  for  mobile  TV  reception,  TeamCast,  a specialist  in  DVB  (Digital Video Broadcasting) standards modulators used for  fixed and mobile Digital Terrestrial TV, and UDcast, an Internet video transport  and distribution specialist. French university research centers, such  as  CNRS,  INRIA and CEA-LETI are also involved in the project, which opens the door for work with laboratories throughout Europe.

The  chosen  solution  is  based on an evolution of the DVB-H standard in a unique  frequency range in the S-Band reserved for satellites (2.2 GHz). It also  relies  on  powerful radio coding known as OFDM (Orthogonal Frequency Division Multiplexing) which is well-suited to future generations of mobile telephony.  The  solution is entirely compatible with DVB-H in the UHF-Band and  with  3G  mobile  telephony,  extensively  reusing existing 3G network infrastructure (sites, antennas, and base stations). The solution advocated by  Alcatel  and its partners is adapted for the European continent as well as in large countries like China, India, or Brazil.

Robert  Havas,  President of the AII Directorate stated: "AII 's mission is to  promote  and  support  large programs driving industrial innovation. We selected  the "Unlimited Mobile TV" project because it is highly innovative technologically,  it is a truly European solution, and because it targets a worldwide  market  thus creating great business opportunities in France and Europe.  As  the  program  leader,  Alcatel  set  up  a strong and coherent industrial and scientific group of partners that is able to position French
and European technology on this new standard."

Olivier  Coste,  President of Alcatel's mobile broadcast activities, added: "Together with our top-notch industrial and scientific partners, Alcatel is proud  that the Unlimited Mobile TV project was selected in the first group of  projects  to  be sponsored by the AII. Our goal for this program, is to give  to  consumers in Europe and around the world a high-quality mobile TV service,  everywhere and for everyone. We are convinced that, thanks to the AII  decision,  we  will quickly be able to provide all mobile TV operators
with a solution that is perfectly suited to the needs of their customers in this promising market."

About Sagem Communication
Sagem  Communication  (SAFRAN  Group)  is  a major player in the Mobile and Broadband  Communication  industries,  who has acquired a strong world-wide position   thanks   to   renewed   innovation.   SAGEM  products  stand-out particularly   in   the   following  activities:  mobile  phones,  printing terminals,  residential  terminals,  digital  TV,  networks  and electronic metering,   etc.   For  more  information,  please  visit  our  Web  sites: www.sagem.com et www.safran-group.com

About DiBcom
DiBcom  is  at  the  heart  of mobile TV. As a French fabless semiconductor company  that  designs  high-performance chipsets, DiBcom enables low-power mobile and portable TV reception and at speeds up to 130 mph. The company's solutions  are  used  in  automotive,  PC/peripheral  and  handheld  device applications.  DiBcom  has  extensive  experience solving real-world mobile
digital  terrestrial  television  (DTT) reception problems and has overcome the  main  technological  barriers to high-quality service. The company has developed  patented  algorithms  and  architecture  for  fast  and accurate channel   estimation  and  high Doppler  compensation.  Its  chipsets  are compliant  with  the  current  worldwide  Digital Video Broadcast standards DVB-T  and  DVB-H.  Founded in June 2000, DiBcom currently employs some 100 people  all  over  the  world.  The  company  is headquartered in Palaiseau (France)  with  additional R&D office in Sweden and worldwide Sales offices in  Germany,  Taiwan, P.R. China (Shanghai), South Korea and US. DiBcom has attracted  ?40.7M  of  funding  to date. For more information, please visit www.dibcom.com

About TeamCast
TeamCast  is  a fast growing technology supplier founded in France in 2003. TeamCast  is  now  offering  advanced OEM technology for telecommunications network  equipment,  as  a comprehensive product range of highly integrated and  robust functional modules. These modules - known as ModulCast Products -  form technical 'building blocks' which can be integrated into customer's own  equipment racks and systems, to produce any transmitting, receiving or translating   functions   required   for   digital   television  and  radio broadcasting  services.  The  TeamCast  engineering team has been very much involved  in  the  development,  definition  and  verification  of  all the European  digital Broadcast Standards (DVB-T, DAB/T-DMB), including leading the  DVB-H  workgroup  in  charge  of  the  definition  and  edition of the standards  for  the  distribution of multimedia content to mobile terminals such  as  cellular  phones  and other hybrid handheld terminals. TeamCast's customers  are  spread  throughout Asia, Europe and America - wherever cost effective solutions for digital broadcasting are required. More information : www.teamcast.com

About UDcast
UDcast  is  a  leading  provider  of solutions for IP over broadcast media, focusing  on delivery of IPTV to mobile devices, as well as satellite-aware enterprise  networking  solutions. UDcast provides DVB-H standard compliant IP  network  solutions for Mobile TV operators and broadcasters, supporting flexible  content  offering.  In  addition,  UDcast  provides  feature-rich satellite  IP  appliances  that  bring  terrestrial-like  performances  and security to broadband satellite links, enabling satellite service providers
to  deliver  revenue-generating  value  added services that meet enterprise needs.  Founded  in  2000,  UDcast  maintains  its  global  headquarters in Sophia-Antipolis, France. For more information visit www.udcast.com