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Alcatel applauds the concrete start of the Galileo Project

19 January 2006

As a shareholder and a founding member of Galileo Industries, Alcatel (Paris: CGEP.PA and NYSE: ALA) today applauds the contract signature of the first industrial phase of Galileo, the European satellite navigation system, between Galileo Industries* and ESA (European Space Agency). This contract marks one of the most important and strategic milestones for Europe and the beginning of the implementation of the Galileo program with the In-Orbit-Validation phase.

Alcatel Alenia Space is a leading contributor and is in charge of developing the ground mission segment, the satellite and system integration as well as critical equipment provisioning. The key elements provided by Alcatel Alenia Space will ensure the outstanding and guaranteed performance of services delivered to the end-users.

The contract was signed today in Berlin at the Ministry of Transport by Giuseppe Viriglio, director of EU and industrial programs at ESA and Gunter Stamerjohanns, CEO of Galileo Industries, in presence of Wolfgang Tiefensee, German Minister of Transport; Serge Tchuruk, Chairman and CEO of Alcatel and the leaders of the other Galileo Industries shareholders as well as representatives of the European and national space agencies.

Serge Tchuruk underlines: "Only a unified Europe made Galileo possible and in return Galileo now makes Europe an even stronger reality. Galileo will open up numerous business and job opportunities for small and large companies as well as for new start-ups across Europe". He added: "Alcatel is the only contributor to Galileo that combines both, infrastructure and downstream solutions in the mobile telecommunications and transportation markets worldwide. I am therefore, more than anyone else, committed to provide Alcatel skills and expertise to make infrastructure performance match with market expectations. To that extent, Alcatel is proud to share the leading role in Galileo."

*Galileo Industries is a joint company of Alcatel Alenia Space, EADS Astrium GmbH and EADS Astrium Ltd, Thales and Galileo Sistemas y Servicios (GSS), a consortium of 7 Spanish companies.

About Alcatel Alenia Space
Alcatel Alenia Space is the European leader in satellite systems, at the forefront of orbit infrastructures. Created in July 2005, the company brings together the vast experience and know-how of Alcatel Space and Alenia Spazio to form a new leading force in European space technology. Alcatel Alenia Space represents a worldwide standard for space development that impacts everybody's future: from navigation to telecommunications, from meteorology to environmental monitoring, from defence to science and observation. Alcatel Alenia Space is an affiliate of Alcatel (Paris: CGEP.PA and NYSE: ALA) (67%) and Finmeccanica (Milan:SIFI.MI, FNC.IM) (33%).