Cannes, France, February 10, 2005 - PacketVideo Network Solutions, Inc. (pvNS), a wholly owned subsidiary of Alcatel (Paris: CGEP.PA and NYSE: ALA), today announced that it will be demonstrating a broad suite of video and audio mobile media applications at 3GSM 2005 (Hall 4, Stand L25).

"As evidenced by the growing number of content and media companies attending 3GSM this year, the demand for mobile media has surged over the last 12 months. As a result so has the need for mobile media enabling solutions. Alcatel's PacketVideo Network Solutions, Inc. is presenting, along with several of its customers and partners, a wide range of services including DRM and mobile commerce tools through to exciting new mobile music, video home monitoring and live TV services," says Patrick Parodi, SVP of Sales and Marketing, Alcatel's PacketVideo Network Solutions, Inc.

"Our 3GPP compliant approach as well as our passionate focus on improving the mobile user experience with such enhancements as progressive download and bandwidth adaptation has helped us attract the leaders in mobile media for whom we have proudly delivered tangible business and operational benefits," concluded Parodi.

Alcatel's PacketVideo Network Solutions, Inc. will be demonstrating at 3GSM applications developed by:

• BeepScience (Norway)
  Beep Science and Alcatel's PacketVideo Network Solutions, Inc. have successfully tested the interoperability of Beep Science's Rich Media DRM solution with the Alcatel pvServer. Beep Science's DRM solution which is based on the upcoming version 2 of the OMA DRM standard. This integrated DRM and MobileMedia server solution demonstrates how content revenues can be secured without affecting the user experience.
  
  
• Cinema Electric (USA)
  CinemaElectric is a world leader in producing global, mobile multimedia content for next-generation personal wireless devices. CinemaElectric provides mobile video downloads under the PocketCinema™ brand. The company produces six lifestyle categories of multimedia product, which are refreshed daily and are customized for popular mobile terminals.
  
  
• EarthCam (USA)
  EarthCam.com has the leading network of live webcams and offers the most comprehensive search engine for world-wide webcams. EarthCam provides complete infrastructure services to manage, host and maintain live streaming video camera systems for its consumer and corporate clients. EarthCam will provide access through the Alcatel pvServer to livecams in NY Times Square and at London's Big Ben.
  
  
• InfoSpace Mobile (USA)
  InfoSpace Mobile is a leading provider and publisher of mobile content and applications that make it possible for media companies and content brands to reach a wide audience of wireless subscribers with compelling content and marketing promotions. InfoSpace Mobile will use Alcatel pvNS technology to demonstrate, mobile video content from Lafflink, the original creator of the stand up-comedy genre of late night TV and the owner of the world's largest video library of such content.
  
  
• Medialive (France)
  Medialive develops and provides digital content protection technologies for audio and video content. Medialive innovative concept uses patented technologies to secure the transmission and storage of unlimited audio/video streams and downloads over any telecommunication network. Medialive is demonstrating DRM protected video download, where encrypted content is streamed using pvServer to the phone along with a key which is used to decrypt and play the video.
  
  
• Orange (France)
  Orange World Video Services delivers the best in mobile video, mobile music and live content services. The scalable Alcatel pvNS powered Orange Video Platform allows Orange customers to stream, download and progressively download video and audio content on GPRS, EDGE and 3G networks. The services showcased include: live video-blogs (streamed through a 3G camera phone) and mobile security, accessing a web cam connected to a PC in the home.
  
  
• Peoples (China)
  China Resources Peoples Telephone Company Limited is one of the primary providers of mobile voice and data communications services in Hong Kong. Operating under the brand name "PEOPLES", the company will present its home surveillance service, through which consumers have a choice of accessing home security video through a PC or by mobile phone.
  
  
• Perseus Wireless (USA)
  The company's first product to market is the PerseusPhone for Mobile Access to Security Video. PerseusPhone works with existing security cameras, CCTV systems and DVRs to extend their reach to wherever you are! The Perseus security demonstration will be powered by pvServer.
  
  
• Scanbuy (USA)
  Users have the ability to utilize Scanbuy's Optical Intelligence technology to read barcodes with their camera phone. Just use the camera phone to point at a barcode and capture the code, the data is then read and decoded automatically launching relevant content. This could be a short trailer for a film, with the barcode attached to the DVD or a poster in a video store. The video content is enabled by pvServer.
  
  
• Sony Network Services (Austria)
  Sony Network Services will show StreamMan the world's first personal mobile music service. Offering a wide range of music from major and independent record labels, StreamMan is based on the high-quality 3GPP standard AAC audio format and was developed by Sony Network Services with support from pvNS. StreamMan is designed as a mobile entertainment application that mobile phone operators can provide for their customers over GPRS and 3G/UMTS networks.
  
  
• Streamezzo (France)
  Streamezzo offers operators, content providers and device manufacturers a complete software suite for creating, publishing, and rendering of interactive and multimedia services for mobile. The rich media demonstration of streamed and progressively downloaded audio and video content is empowered by Streamezzo's and pvServer. The solution is hosted by Alcatel's Mobile Kiosk.
  
  
• Surelabs (Australia)
  Surelabs has developed a new range of security solutions for all segments - from the home user to the enterprise market. It allows users to attach several local cameras to a PC, providing simultaneous video streams for monitoring purposes using Surelabs Sensitec motion detection technology. Users can be alerted via e-mail/mobile phone whenever intrusions are detected. The solution uses Alcatel pvNS Transcoding Services Framework for live streaming.
  
  
• Yacast (France)
  YACAST provides online streaming and content delivery services to radio and TV companies. Yacast will demonstrate the live streaming of radio services to mobile phones using Alcatel pvServer.
  
  
• 123 Multimedia (France)
  123Multimedia has achieved remarkable success as a leading European mobile content provider by offering WAP, i-mode and Java-based mobile Internet content services. Working with Alcatel's PacketVideo Network Solutions, Inc., 123 Multimedia will be demonstrating content from their LIVE Tchatche TV channel on 2.5G and 3G devices.

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 12.3 billion in 2004, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com

About Alcatel's PacketVideo Network Solutions, Inc.
PacketVideo Network Solutions, Inc., a wholly owned subsidiary of Alcatel, was previously a division of PacketVideo, a company founded in 1998 which is recognized as the world's premier independent provider of mobilemedia software. PacketVideo Network Solutions, Inc. designs and develops network-based software solutions to facilitate the distribution of multimedia-based communications, offering the pvServer™ product line of multimedia distribution software. pvServer™ has been through rigorous testing, leading to the commercial launch by over a dozen carriers, content providers and ASPs worldwide.