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ALCATEL AND MOTOROLA TO BUILD JOINT PRODUCT

PARIS-Alcatel and Motorola Inc. announced a global agreement to work together to develop,
market and deliver integrated Code Division Multiple Access network infrastructure to customers worldwide.

The
companies also have agreed to jointly develop a third-generation mobile switching center based on the UMTS 3G
technology proposal chosen by Europe.

The agreement, said the companies, considerably enlarges the scope of the
cooperation initiated two years ago. Alcatel and Motorola will work together to develop new functionality and features
for Motorola’s EMX-based CDMA switching platforms. Motorola also will offer customers Alcatel’s S12 switching
platform for MSC-based CDMA networks and Alcatel will add Motorola’s CDMA radio base stations and base station
controllers to its portfolio.

Alcatel will develop an MSC-based UMTS radio network controller that interfaces with
its core network, while Motorola will develop a radio base station which interfaces with the Alcatel RNC.

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