Cannes, France, February 14, 2005 - ZTE (Shenzhen: 000063 Hong Kong: 0763), a leading wireless solution provider and Alcatel (Paris: CGEP.PA and NYSE: ALA) announced today that they have signed an OEM agreement for the integration of ZTE´s CDMA radio access portfolio into Alcatel´s end-to-end CDMA solutions.

This cooperation will allow both companies to better address the growing demand for CDMA-powered fixed or mobile broadband services, by combining ZTE´s leading CDMA radio access technology with Alcatel´s broad range of CDMA-ready core network and transmission solutions, its wide portfolio of applications solutions, and its field-proven end-to-end network integration capabilities. In particular, the combined offering of ZTE´s CDMA radio access solutions and Alcatel´s 5020 Spatial Atrium next-generation mobile core network solution will allow flexible, cost-effective and future-proof network deployments or extensions. The agreement covers ZTE´s complete portfolio of CDMA radio access solutions, including 1xRTT, EV-DO , EV-DV, and CDMA 450.
 
CDMA is currently driven by strong prospects in developing markets, especially with CDMA 450 solutions, as well as by the success of EV-DO spreading out of key markets like USA and Korea.
 
"Our CDMA equipment is already deployed in over forty countries around the world," said Ms. Fangrong, Vice President at ZTE.  "Alcatel is a strong and sound partner, and we are confident of widening the geographical reach of our CDMA radio access equipment thanks to Alcatel´s global footprint and its recognised network integration capabilities."

Marc Rouanne, Chief Operating Officer of Alcatel´s mobile communications activities, noted: "ZTE´s CDMA radio access solutions fit well into our multi-standard radio access mix. ZTE´s proven technology and expertise in CDMA radio are well recognized and I am pleased that our two companies can work together. This collaboration further extends Alcatel´s rich portfolio of wireline and wireless broadband access solutions, which already encompasses DSL, WiFi, GSM/EDGE, UMTS/HSDPA, TD-SCDMA and WiMAX."

"Adding ZTE´s CDMA radio access portfolio into the mix makes Alcatel the only company ready to address all forms of broadband while supporting ZTE internationally," added Peter Jarich, Senior Analyst, Wireless Infrastructure, Current Analysis.

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 12.3 billion in 2004, Alcatel operates in more than 130 countries.
For more information, visit Alcatel on the Internet: http://www.alcatel.com