London, Paris, February 14, 2005 - Alcatel (Paris: CGEP.PA and NYSE:ALA) and Orange, one of the world's largest mobile communications companies, today announced that they have agreed a three year extension to the global contract announced in November 2003 for the delivery of Alcatel's pvNS streaming software for mobile video and audio services.

The Alcatel pvNS video streaming software is currently enabling video and audio services offered via the Orange World Video portal in some of Orange's operations in Europe including 2.5G, EDGE and 3G networks. Alcatel's pvNS audio and video services platforms also played a key role in the roll-out of Orange's user-centric mobile broadband experience that launched commercially in the UK and France in December 2004. Alcatel's pvNS has also supported mobile video services for Orange Romania over its EDGE network which launched in October of last year.

The contract extension will see the two companies continue to work with content companies, handset manufacturers and application developers to deliver the best possible video and audio mobile media experience to Orange customers.

Phil Reynolds, Service Enabler Product Manager, Orange Group, said: "Orange works with technology partners that understand and reflect the core values of our business. Alcatel's pvNS video streaming software ensures that our mobile services are differentiated in the marketplace, easy-to-use and reflect the needs of the customer."

Patrick Parodi, SVP of Sales and Marketing, Alcatel's PacketVideo Network Solutions, Inc., said: "I'm delighted that we've extended this contract with Orange, it shows that we have a productive working relationship and also means that we will be one of Orange's key Mobile Media partners for the exciting period during which mobile video moves to prime time."

He added: "Alcatel has a clear vision of a user-centric broadband world and by delivering products and services that make this vision a reality Alcatel will help Orange to offer mobile media services that place it ahead of the competition."

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 Alcatel's PacketVideo Network Solutions, Inc.
PacketVideo Network Solutions, Inc. (pvNS), 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. Alcatel's pvNS designs and develops network-based software solutions to facilitate the distribution of multimedia-based communications, offering the Alcatel pvServer™ product line of multimedia distribution software. Alcatel pvServer™ has been through rigorous testing, leading to the commercial launch by over a dozen carriers, content providers and ASPs worldwide.