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Alcatel To Build Chinese Satellite (Sept. 30)

PARIS --- Alcatel today announces the signature of a contract with the China Academy of Space Technology (CAST) for the development and construction of a new telecommunications satellite. This partnership will allow both contractors to develop the first high capacity Chinese telecommunications satellite.

The contract has been signed in the presence of China's Premier Zhu Rongji, the French Prime Minister Jean-Pierre Raffarin, Alcatel's President and Chief Executive Officer Serge Tchuruk, the President of China Aerospace Corporation (CASC, parent company of CAST) Zhang Qingwei and the President of Asia Pacific Telecom (APT), Chen Zao Bing.

Alcatel will provide the payload module - meaning the electronic equipment which specifies the satellite mission - to CAST for the integration of the first China made high capacity communication platform DFH4 into a complete satellite. The new satellite that will be delivered to APT (Hongkong), is tailored to provide communication, radio and TV broadcasting services to telecom operators and to radio and TV stations.

"For Alcatel Space, this new contract, after the deal signed in December 2001, is a great success in the growing market of the Asia Pacific region" said Pascale Sourisse, CEO of Alcatel Space.

"CASC trusts Alcatel's satellite technology and products, because China has been working with Alcatel for a long time in this field. China's Sinosat1, which has been operating well for many years, was provided by Alcatel. Last year, APT also purchased a whole satellite AP Star VB from Alcatel Space" said a Senior executive from CASC.

The satellite is to be launched by China Long March launcher in 2005.

China Premier Zhu Rongji will go to Toulouse to visit Alcatel Space on Saturday September 28.

Alcatel Space ranks among the world's leading space systems prime contractors. Leveraging its dual expertise in civil and military applications, Alcatel Space develops satellite technology solutions for telecommunications, navigation, optical and radar observation, meteorology, and scientific applications. The company is also Europe's number one prime contractor for Earth observation, meteorology and navigation ground segments, as well as space systems operations. A fully-owned subsidiary of Alcatel (100%), Alcatel Space generated 2001 revenues of 1.4 billion Euros.

Alcatel designs, develops and builds innovative and competitive communications networks, enabling carriers, service providers and enterprises to deliver any type of content, such as voice, data and multimedia, to any type of consumer, anywhere in the world. Relying on its leading and comprehensive products and solutions portfolio, stretching from end-to-end optical infrastructures, fixed and mobile networks to broadband access, Alcatel's customers can focus on optimizing their service offerings and revenue streams. With sales of EURO 25 billion in 2001, Alcatel operates in more than 130 countries.

Alcatel is established in China since the early 80s with a full portfolio of telecom equipment activities. In 2000, Alcatel made history as the first multinational to set up its Asia Pacific headquarters in Shanghai. Also in 2001 China's Ministry of Information Industry and Alcatel signed an agreement to create a Company Limited by Shares, Alcatel Shanghai Bell (ASB) integrating Alcatel's key operations in China with Shanghai Bell. Alcatel Shanghai Bell was officially launched at the end of May 2002 and is expected to be number two telecommunication player in China with revenues of around US $ 2 billion.

Alcatel Wins New Telecom Satellite Contract And Strengthens Its Space Cooperation With China