Alcatel Awarded US$27 Million Wireless Contracts GSM Network Expansions in China

Alcatel announced that it has been awarded, through Alcatel Shanghai Bell, two separate GSM network expansion contracts worth over US$27million by Gansu Mobile and Jilin Mobile, two subsidiaries of China Mobile, the second largest mobile
operator in the world.

Picture shows GSM MOBILE : One Touch 701 Moon White

Under the terms of these two contracts, Alcatel will supply, install and
commission the industry-leading Evolium™ family of products, including base
stations (BTS), home location register (HLR), base station controller
(BSC), mobile switching center (MSC), and packet control unit (PCU)
supporting a GPRS network.

This project representing Gansu Mobile’s sixth GSM network expansion will
further improve the network’s capacity and reliability. When completed in
October 2002, the total capacity of the Gansu GSM network will support over
2.1million subscribers. Alcatel Shanghai Bell’s partnership with Gansu
Mobile dates back to 1996.

In Jilin, an industrial province in China's north-east region, Alcatel will
implement itsseventh GSM network expansion, bringing the network to a total
capacity of 4.6 million subscribers covering all the cities and regions of
Jilin province. The partnership between Alcatel and Jilin Mobile began
back in 1995, when Alcatel Shanghai Bell built the Chinese operator's first
GSM network.

Yao Shihong, General Manager of Gansu Mobile Communication Co., Ltd.,
declared, "We have really benefited from our long-term partnership with
Alcatel Shanghai Bell, and continue to do so. Its advanced technologies
and full attention to service help us meet all our customers demands for
the latest mobile services."

Bai Yufa, General Manager of Jilin Mobile, added, “We have enjoyed a
long-term co-operation with Alcatel Shanghai Bell, which is Jilin Mobile’s
biggest supplier. We sincerely hope Alcatel Shanghai Bell will continue to
develop the most advanced technologies and products for this on-going
win-win collaboration.”

Jean-Herve Leger, Asia Pacific Vice President of Alcatel’s Mobile Networks
activities, also said, “We are very proud of our customers’ continued trust
in our products, as proven by their repeated orders. They are investing in
a future-proof product, as our GSM networks and solutions also serve as
platforms for seamless evolution to next generation mobile networks.”