1. All rights reserved © 2006, Alcatel The Food Chain – Alcatel View Joelle GAUTHIER Vice President Research & Innovation

2. All rights reserved © 2006, Alcatel 2 Alcatel Worldwide Telecommunication solution provider #1 in Europe, Middle East, Africa & India Amongst top players in USA Amongst 3 top Chinese players in China Sales at 13.1 billion 58,000 employees active in 130 countries 41% North America Asia Pacific Western Europe RoW 30% 15% 14% in billion Mobile communications 4 Private communications 3.9 Fixed communications 5.2

3. All rights reserved © 2006, Alcatel 3 1.5 Bn 2005 R&D Investment 10,000 patents granted and 8,000 patent applications worldwide 700 patents filed every year 300 experts in 100 standard bodies France Germany Belgium Italy CIS Canada USA China India Australia Alcatel R&D : Innovative clusters, Customer proximity, Cost optimization 16,000+ R&D engineers 21 major development centers 500 researchers in 6 Research & Innovation Centers

4. All rights reserved © 2006, Alcatel 4 Key innovation and usage drivers today… Triple Play Quadruple Play Convergence Next Billion users

5. All rights reserved © 2006, Alcatel 5 Alcatel in European Technology Platforms Triple Play Quadruple Play Convergence Next Billion users Interoperability Standards High Capacity Networks Open Service Delivery Environment Leading contribution Board Membership Active contribution

6. All rights reserved © 2006, Alcatel 6 Alcatel: a key player in technology standards Program fully integrated into quality plans and product development cycles Thought leadership in: BB Access and Services Business grade IP services Fixed-mobile solutions NGN & Applications Data and Optics blend Mobile networking Future Proofing and Security Multivendor Interoperability User Acceptance CAPEX/OPEX Reduction New Revenue Streams Fast Time to Market 300 Alcatel experts in more than 100 Standards Bodies Key positions in: ITU, 3GPP, ETSI, ATIS, DSLF, IETF, CCSA, OMA, BCDF

7. All rights reserved © 2006, Alcatel 7 Alcatel powerful portfolio Access Optics IP Mobile Enterprise Satellites Rail signaling ADSL FTTX WiMAX Terrestrial Submarin e ETCS Core NGN Applications Edge service router Ethernet aggregation Observation, science civilian & military telecoms IP telephony Call centers World leader At the forefront World leader #2 Leader Among the top 2 or 3 in the world World leader Among the top 2 or 3 in the world

8. All rights reserved © 2005, Alcatel www.alcatel.com