Picture shows Mr. Wu Jichuan, Minister of MII and Mr. Serge Tchuruk, Chairman and CEO of Alcatel attend the Alcatel Shanghai Bell Opening.

Alcatel officiall launched its 3G Reality Centre in Shanghai - the first comprehensive, live, end-to-end environment for the development and testing of advanced mobile applications and data services in the fields of 2.5G/GPRS and 3G/UMTS in China. This builds on the first operational 3G infrastructure in China -set up by Alcatel - in October 2001, and leverages on Alcatel's worldwide 3G Reality Centre program.

By partnering with local content and applications providers in its Shanghai
3G Reality Centre, Alcatel will provide mobile operators in China and the
rest of the Asia Pacific region with a window on the latest services that
are being developed in China, the world's largest mobile market. This
network will be a key asset for mobile operators, especially in China, as
they look to develop a complete service offering and profitable business
model for next-generation mobile services.

The Shanghai 3G Reality Centre is the flagship in Alcatel's rollout of a
full network of 3G Reality Centres across the Asia Pacific region. Such
Centres will be launched in Australia, South Korea, Japan and Malaysia as
well.

By bringing together operators and content owners with a unique range of
vertical expertise and geographical coverage, the Shanghai 3G Reality
Centre offers partners business-enabling solutions to create value-added
end-user mobile services.
The Shanghai Centre's strategic partners already include Fujitsu, long-term
3G infrastructure partner of Alcatel, as well as Intrinsic Technology of
China and South Korea's WiderThan.com, leading wireless data enablers in
the region. The Centre is mainly dedicated to customers in China, with
Alcatel Shanghai Bell playing a key role in its establishment and future
development.

Alcatel's 3G Reality Centre program is a worldwide initiative with special
emphasis on 3G/UMTS in Europe and Asia. Alcatel's 3G Reality Centres offer
Alcatel and its partners, including local content and applications
providers as well as handset suppliers, a live and comprehensive end-to-end
environment for the development, validation and testing of advanced mobile
applications and data services, in the field of 2.5G/GPRS, EDGE and
3G/UMTS.

In Europe, a 3G Reality Centre has already been officially launched in
Malmö (Sweden). Additional launches are planned in the coming weeks, built
on existing Alcatel 3G infrastructures in Cascais (Portugal), Rijswick
(Netherlands), Paris (France), Vimercate (Italy) or Stuttgart (Germany).
Others are scheduled to be opened before year-end.

“The Asia Pacific region is emerging as a real hotbed for proving the
viability of 3G mobile applications and services. Our 3G Reality Centre in
China, which now has the world's largest mobile subscriber population,
offers mobile content developers and operators throughout the region a
priceless opportunity to interact in an environment that stimulates the
continual development of cutting-edge applications and services,” said Ron
Spithill, Alcatel Executive Vice President and Asia Pacific President.
“Alcatel is committed to partnering with carriers and content providers to
develop realistic and profitable business models for Asia's telecom future,
and this 3G Reality Centre initiative is part of our role in leading 3G
commercial rollout in this region,” Mr Spithill added.

“This 3G Reality Centre highlights Alcatel's technology leadership, as well
as our commitment to helping operators around the world build and operate
cost-efficient third generation mobile networks. No other vendor can offer
a commercial solution as comprehensive and ready-for-service as the
platform we are showing in real life today,” said Marc Rouanne, President,
Alcatel Mobile Networks activities.

Visitors to this Centre can personally experience 3G communications with
voice in circuit mode and data and high speed video images in packet mode,
web browsing and file transfer protocol (FTP), video casting, gaming, video
streaming and video on demand (VOD). All this will run on the latest
Evolium 3G equipment and solutions, leveraging Alcatel's expertise in GSM,
GPRS, and EDGE as well as in ATM and IP technologies, with the advanced
experience of Fujitsu as supplier of NTT DoCoMo, which has had a UMTS
commercial network in service in Japan since May 2001.

About Alcatel's 3G Reality Centres
Alcatel's 3G Reality Centre program is a worldwide initiative with special
emphasis on 3G/UMTS in Europe and Asia. They offer Alcatel and its
partners, including local content and applications providers as well as
handset suppliers, a live and comprehensive end-to-end environment for the
development, validation and testing of advanced mobile applications and
data services, in the field of 2.5G/GPRS, EDGE and 3G/UMTS. Such centres
are already operational in Shanghai (China), Vimercate (Italy), Lisbon
(Portugal), Paris (France), Malmö (Sweden) and Stuttgart (Germany).