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Alcatel Alenia Space to provide telecom payloads for two Russian satellites, Express MD-1 and MD-2

30 November 2006

Alcatel Alenia Space announced today that it has signed a contract with the Russian Satellite Communications Company (RSCC), the state-owned satcom operator, to provide telecommunication payloads for the Express MD-1 and Express MD-2 satellites built by Khrunichev.

Express MD-1 and MD-2 will each be fitted with eight C-band and one L-band transponders, along with a repeater panel and an antenna farm, to provide TV, voice and data transmission and radio broadcasting services over an area spanning Russia and most of the CIS countries. Express MD-1 is slated for launch at the end of 2007 jointly with the Express AM44 satellite.

Carlo Alberto Penazzi, the CEO of Alcatel Alenia Space in Italy, said: "We are particularly proud of this new contract. Not only does it reflect our ongoing commercial satcom business growth, it is also clear recognition of our technological expertise and product reliability, especially coming from a major satellite market such as Russia."

"The contract signed is the RSCC' next step heading toward the development of the state satellite constellation for the sake of Russian and foreign customers. The new Express-MD1 and Express-MD2 satellites in orbit will allow RSCC to pursue a more flexible marketing policy on developing the satellite business, including the existing network backup, and to offer advanced communications and broadcasting services both in Russia and abroad," stressed Iouri Izmaïlov, RSCC' acting Director General.

The payloads will be assembled by Alcatel Alenia Space in Italy and will be delivered to Khrunichev starting in the third quarter of 2007.

This agreement follows previous contracts signed by Alcatel Alenia Space for the supply of Express AM and MD class satellite payloads, and further bolsters the company's presence in Russia. Since the mid-1990s, when Alcatel Alenia Space kicked off its industrial collaboration with Russia, the company has won contracts for 12 communications payloads dedicated to the Russian market.

About Alcatel Alenia Space
Alcatel Alenia Space is the European leader in satellite systems and at the forefront of orbital 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 sets the global standard for space developments that impact everybody's future: from navigation to telecommunications, from meteorology to environmental monitoring, from defense to science and observation. Alcatel Alenia Space is a joint subsidiary of Alcatel (Paris: CGEP.PA and NYSE: ALA) (67%) and Finmeccanica (Milan:SIFI.MI, FNC.IM) (33%).

About RSCCa
The Russian Satellite Communications Company (RSCC) is the national satellite communications operator with global coverage. The company was established in 1967. In terms of the satellite capacity, RSCC belongs to the ten largest world satellite communications operators. RSCC possesses and operates 11 GEO satellites providing service in C-, Ku-, and L- bands. The satellites are positioned between 14 W and 145 E, and cover Russia, the CIS, Europe, the Middle East, Africa, Asia-Pacific, North and South Americas, Australia.RSCC provides a wide range of communications services via its satellite fleet and terrestrial facilities: TV and radio broadcasting, occasional use, telephony, data, Internet, video conferencing, VSAT networks, telemedicine and distance learning.More detailed information is available on Web-site: www.rscc.ru