Alcatel Enables Mobile Next Generation Network Services in Russia


BARCELONA, Spain, February 14/PRNewswire/ --

3GSM World Congress, Barcelona, 13 - 16 February 2006

Alcatel (Paris: CGEP.PA , NYSE: ALA) today announced the successful completion of the first phase of a project with VimpelCom (NYSE: VIP), a leading international provider of telecommunications services, operating under the "Beeline" brand in Russia and Kazakhstan, for the deployment of its mobile Next Generation Network(NGN) solution in Russia.

With this network in place, VimpelCom will be able to reduce the operating costs of its mobile GSM/GPRS core network while optimizing its costs for 3G/UMTS introduction, thus ensuring long-term investment protection in preparing for the introduction of IP Multimedia Subsystems (IMS). In the framework of the first phase of the project, VimpelCom launched the commercial operation of a segment of its NGN network in the Ural region.

Under the term of the contract signed in Q2 2005, Alcatel provided VimpelCom with its Alcatel Spatial Atrium innovative, standard-based distributed mobile switching solution. The cornerstone of this solution is the Alcatel 5020 Spatial Atrium Softswitch, a multi-standard and field-proven mobile call server controlling distributed media gateways and managing call/session control for voice and data services.

Sergey Avdeev, VimpelCom's executive vice-president of business development in the CIS, and chief technical officer, commented:
"Mobile NGN had become a reality in Russia that lets mobile operators significantly reduce operational costs and introduce new fast-to-market services."

"This first Mobile NGN deployment in Russia is one more proof of services and costs benefits offered by Alcatel's mobile NGN solution to operators in fast growing countries, already confirmed by our achievements with TA Orange in Thailand and Zhejiang Mobile in China," said Marc Rouanne, chief operating officer of Alcatel's mobile communications activities. "This project is a perfect example of added value that our Mobile NGN solution can bring to the fast developing mobile operators in Russia and CIS".

About VimpelCom
VimpelCom is a leading international provider of mobile telecommunications services in Russia and Kazakhstan, with newly acquired operations in Ukraine, Tajikistan and Uzbekistan. The VimpelCom Group's license portfolio covers approximately 232 million people. Geographically it covers 78 regions in Russia (with 136.5 million people, representing 94% of Russia's population) as well as the entire territories of Kazakhstan, Ukraine, Tajikistan and Uzbekistan. VimpelCom was the first Russian company to list its shares on the New York Stock Exchange ("NYSE"). VimpelCom's ADSs are listed on the NYSE under the symbol "VIP". For more information, see http://www.vimpelcom.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: www.alcatel.com

Alcatel Press Contacts
Régine Coqueran
Tel :+ 33(0)1-40-76-49-24
regine.coqueran@alcatel.com

Alcatel Investor Relations
Pascal Bantegnie
Tel : +33(0)1-40-76-52-20
pascal.bantegnie@alcatel.com

Nicolas Leyssieux
Tel : +33(0)1-40-76-37-32
nicolas.leyssieux@alcatel.com

Maria Alcon
Tel : +33(0)1-40-76-15-17
maria.alcon@alcatel.com

Charlotte Laurent-Ottomane
Tel : +1-703-668-7016
charlotte.laurent-ottomane@alcatel.com

Source: Alcatel

Alcatel Press Contacts: Régine Coqueran, Tel :+ 33(0)1-40-76-49-24, regine.coqueran@alcatel.com; Alcatel Investor Relations: Pascal Bantegnie, Tel : +33(0)1-40-76-52-20, pascal.bantegnie@alcatel.com; Nicolas Leyssieux, Tel : +33(0)1-40-76-37-32, nicolas.leyssieux@alcatel.com; Maria Alcon, Tel : +33(0)1-40-76-15-17, maria.alcon@alcatel.com; Charlotte Laurent-Ottomane, Tel : +1-703-668-7016, charlotte.laurent-ottomane@alcatel.com

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