Paris, June 29, 2006 — Alcatel (Paris: CGEP.PA and NYSE: ALA) and Dallah Telecom, an affiliate of Dallah Al Baraka Group, a Middle Eastern content provider and a new media licensee of the 2006 FIFA World Cup TM, announced today they have signed an agreement to jointly provide mobile operators in the Middle East and North Africa with a fully hosted turnkey mobile multimedia portal solution. This project will enable the new media coverage of the 2006 FIFA World Cup™ in the region and will allow more football fans to interactively experience and enjoy the most exciting and decisive moments of all 64 matches on their mobile phones.

Thanks to this solution, supporters will be able to:

• receive SMS alerts on all games (goals, events, results) and MMS images and videos,
• browse a Wap portal with the games of the day (news, images, videos),
• consult a 2002 games retrospective,
• find group information,
• be informed on results,
• receive video highlights, by download (goals and events) or by streaming (games and daily summaries).

The service is available in English, French and Arabic.

In this cooperation, Dallah Telecom provides the content and Alcatel provides its technical solution known as "Mobile Kiosk". Mobile Kiosk is a full turnkey solution that allows content aggregation and service delivery in a hosted and operated mode. It will enable Dallah Telecom to distribute its exclusive new media content of the 2006 FIFA World Cup™ to mobile operators in seven countries including Saudi Arabia, Kuwait, Morocco, and Jordan. This is the first deployment of Alcatel's Mobile Kiosk solution in a multi-operator, multi-country context. Addressing 25 million potential users, the project, will also increase mobile data usage in the region.

The turnkey solution provided to Dallah Telecom includes design of the services (story board, look and feel), deployment of the platforms, customization and integration with operators (SMS-C, MMS-C, Wap gateway and billing), monitoring, as well as publishing during the event.

The solution is fully hosted, operated and integrated by Alcatel's Regional Competence Center in Portugal. Drawing on its extensive expertise on Mobile Kiosk in Portugal, the Center provides a team of local managed solution experts as well as a set of local services to help operators and their partners.

Mr. Amr Kamel, CEO of Dallah Telecom declared; "Alcatel's leadership in advanced video and mobile multimedia services, confirms the company as a key partner for this project. Today football through mobile is the ultimate mass-market entertainment in this region. The Alcatel solution will allow us to freely and cost-effectively create, shape, format, and distribute news, images and videos content either downloaded or streamed on mobile handsets. With Alcatel as a technical partner, we are confident that our innovative multimedia mobile portal will be a true success."

"Alcatel's involvement in this project is a prime showcase of our capability to deliver, new value through new media for sports and entertainment to content owners and service providers worldwide," stated Marc Rouanne, chief operating officer of Alcatel's mobile communications activities. "Alcatel's turnkey Mobile Kiosk solution will enable more football fans to experience the excitement of the 2006 FIFA World Cup™ on their mobile phones whenever and wherever they want".

Alcatel's Mobile Kiosk solution is already successfully powering more than 250 companies in Western Europe and in Africa and Middle East allowing operators to boost data usage and to open their network to local content providers, enterprises and communities. More than 80 mobile operators in Europe, Asia, Africa and Latin America have already adopted Alcatel's video and multimedia solutions to enable their mobile video, music and live TV services.

The 2006 FIFA World Cup GermanyTM is being held from June 9th to July 9th, 2006.

About Dallah Telecom
Dallah Al Baraka is a major group in the Middle East and Worldwide with more than 60,000 employees. Dallah activities are focused on three sectors, Banking, Business / Industry and Media with ART TV channels. Dallah Telecom, an affiliate of Dallah Al Baraka, manages the new media rights, including Mobile network and Internet broadcasting, for the group on the Middle East and North Africa region. With its sister company ART which holds the TV rights, Dallah Telecom covers all the major world sports events and particularly main football leagues of Europe and MENA region. ART owns also the biggest Arabic movies library, and makes this media content available for Internet and Mobile Network applications through Dallah Telecom.

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 13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com