Paris & Salzburg, June 16, 2004 - Alcatel (Paris: CGEP.PA and NYSE:ALA) and Sony Network Services Europe today announced that PacketVideo Network Solutions, Inc. (pvNS), a wholly owned subsidiary of Alcatel, has been selected to provide the server and media player technology for Sony's StreamMan, the world's first personal mobile music service.

Offering a wide range of music from major and independent record labels, StreamMan is a service that provides music to mobile devices over a GPRS or 3G/UMTS mobile network. StreamMan will allow consumers to listen to their favorite music anytime and anywhere, discover new artists and bands tailored to their individual tastes, and also share tracks, playlists or collections with friends. In addition, StreamMan also includes a unique smart personalization system that learns and stores your tastes, so that StreamMan can provide a group of individually personalized music stations that know what you like to listen to.

StreamMan is based on the high-quality 3GPP-standard AAC audio format and was developed by Sony Network Services with support from PacketVideo Network Solutions, Inc. StreamMan is designed as a mobile entertainment application that mobile phone operators can provide for their customers on GPRS or 3G/UMTS networks.

Andreas Spechtler, Director, Sony Network Services Europe, said: "Alcatel, through its subsidiary, PacketVideo Network Solutions, Inc., has provided a world-class mobile media technology platform that allows StreamMan to address the maximum number of devices with a high-quality, personalized, continuous listening experience. We are looking forward to extending our successful partnership with pvNS as we develop and launch StreamMan throughout Europe."

"Sony's StreamMan is a groundbreaking mobile service, providing users with a new way to enjoy music on their mobile phones. PacketVideo Network Solutions, Inc. is proud to have been selected by Sony to provide the core music delivery technology for StreamMan, a decision that underlines our status as the premier technology enabler for 3GPP standards-based mobile music services", said Anthony Sheehan, Director Applications and Services, PacketVideo Network Solutions, Inc.

Starting today, TeliaSonera Finland is the first operator to offer StreamMan. Leveraging this first reference, both PacketVideo Network Solutions, Inc. and Sony Network Services will collaborate on a joint market plan to address other operators, initially throughout Europe.

About Sony
Sony manufactures audio, video, communications and information technology products for the global consumer and professional markets. With its music, pictures, game and online businesses, Sony is uniquely positioned to become a leading personal broadband entertainment company in the 21st century. In Europe, Sony recorded consolidated annual sales of EUR 13.47 billion (yen 1,765 billion) for the fiscal year ended March 31, 2004, based on an average market exchange rate for the same period of yen 131 to the EUR. Sony Europe, headquartered at the Sony Center am Potsdamer Platz in Berlin, is responsible for the company's European electronics business and registered consolidated sales of EUR 8.71 billion for the fiscal year ended March 31, 2004.For more information on Sony Europe, please visit http://www.sony-europe.com

About Sony Network Services Europe
Sony Network Services Europe creates, develops and operates innovative content services for various media platforms such as mobile phones, home entertainment, PC and internet. Sony Network Services supports the Sony Corporate goal to generate growth through device and content convergence. StreamMan was initiated and implemented by Sony Network Services in Austria. www.sonynetservices.com

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. For more information, visit Alcatel on the Internet: http://www.alcatel.com

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.

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