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Alcatel Awarded Euro 236 Million (USD 300 Million) Contract to Transform the University of Pittsburgh Medical Center Communications Infrastructure

PARIS, November 6, 2006/PRNewswire-FirstCall/ — Alcatel (Paris: CGEP.PA and NYSE: ALA) and the University of Pittsburgh Medical Center (UPMC) today announced a multi-year agreement valued at Euro 236 million (USD 300 million) for Alcatel to lead an IP network transformation project upgrading the health care provider's communications infrastructure. As part of the agreement, Alcatel and UPMC will also establish a joint venture to develop advanced communications technologies and applications focused on the health care industry.

The IP network transformation project, which will commence at the beginning of 2007, includes the upgrade of UPMC's wired and wireless data infrastructure, enterprise telephony system, and contact center platforms and applications to a new converged IP infrastructure. This will create a single voice, data and video network and enable the development of advanced communications features that benefit patients and physicians.

Alcatel was selected as the provider of infrastructure and applications for this project based on the company's impressive breadth of solutions, international reach, and deep understanding of the specific needs of the health care market. The project will leverage a wide range of Alcatel's product portfolio including enterprise data and telephony solutions, IP routing equipment, optical transport technology and contact center solutions.

Under the joint venture, Alcatel and UPMC will each invest USD 25 million to develop applications, technologies and solutions for the health care industry. Initially, this venture will focus on the area of public safety, with a goal of creating systems, processes and technologies that ensure first responders, key decision makers and health care providers are able to securely share and access critical information and applications during a crisis.

"The mission of UPMC is to provide outstanding patient care and to shape tomorrow's health system through clinical innovation and research. This dictates a state-of-the-art, reliable, scalable communications system," said UPMC Chief Information Officer Dan Drawbaugh. "Alcatel's innovative products will allow for seamless communication by integrating voice and data networks. Access to information for clinical and administrative needs will be available through the most appropriate channels. We believe this initiative will expand to meet UPMC's needs regionally, nationally and internationally. "

"Alcatel is committed to helping the health care industry redefine its traditional means of communications and business processes during a crisis towards a model that will produce a faster and more efficient first response," said Hubert de Pesquidoux, President of Alcatel's activities in North America. "We are confident that by leveraging our broad portfolio of communications solutions in the transformation of UPMC's network, UPMC will be able to deliver new services and applications that will help streamline its overall business processes and solidify its role as an industry leader."

About University of Pittsburgh Medical Center

The University of Pittsburgh Medical Center (UPMC) is the largest integrated health care enterprise in Pennsylvania and one of the leading nonprofit health systems in the country. It is the only organization that has earned honor roll status in both U.S. News & World Report's 2006 "America's Best Hospitals" and "America's Best Health Plans" rankings. Widely recognized for its innovations in patient care, research, technology and health care management, UPMC has transformed the economic landscape in western Pennsylvania. The region's largest employer, with 43,000 employees and nearly US$6 billion in revenue, UPMC comprises 19 tertiary, specialty and community hospitals, 400 outpatient sites and doctors' offices, retirement and long-term care facilities, an insurance plan, and international ventures. Nearly 5,000 physicians are affiliated with UPMC, including more than 2,300 employed physicians. Since April 2005, UPMC has signed joint development agreements with such industry leaders as IBM, Cerner, Alcatel and dbMotion valued at more than US$175 million. UPMC and its partners aim to commercialize innovative technologies and services that will enhance the safety and efficiency of health care worldwide. For more information, visit www.upmc.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 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.

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