Dallas, March 22, 2004 – PacketVideo Network Solutions, Inc. Inc., a wholly owned subsidiary of Alcatel (NYSE: ALA), has opened its San Diego corporate headquarters that houses more than 25 engineers, scientists and senior executives who support commercial offices in Tokyo, London and Paris.

The office opening follows Alcatel's acquisition of PacketVideo Network Solutions, Inc., Inc., the premier supplier of multimedia software and services for mobile network operators, application service providers and content owners, formerly a division of PacketVideo Corporation.

"Having our headquarters in one of the wireless communications capitals of the world makes it easier for us to have a dialogue with business partners and customers and means that we can take advantage of the close proximity of so many wireless technology skills," says Mike Barlow, CEO, PacketVideo Network Solutions, Inc., Inc. "Our new headquarters is the first Alcatel office in San Diego, so we will also be well positioned to help liaise with the rest of the Alcatel group. We look forward to being a dynamic member of this important community."

The PacketVideo Network Solutions, Inc. customers that have chosen and installed pvServer™, designed by engineers based in San Diego, include DoCoMo, HP, Mobilkom Austria, ONE, Orange Mobilemedia, Siemens, T-Mobile and Westel.


About 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.


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 to their employees. Alcatel leverages its leading position in fixed and mobile broadband networks, applications and services to bring value to its customers in the framework of a broadband world. With sales of EURO 12.5 billion in 2003, Alcatel operates in more than 130 countries.