Alcatel and Fujitsu demonstrate live end-to-end
3G network and applications in China

Paris/Tokyo, November 20, 2001---Building on their collaboration in next-generation wireless technology, Alcatel and Fujitsu Limited have successfully carried out voice and high-speed data and video communications using actual applications on a live end-to-end 3G/UMTS mobile infrastructure network, in full compliance with W-CDMA 3GPP 99 standards. The demonstration was held at the recently concluded PT/Wireless & Networks Comm China 2001 event in Beijing.

Highlighting the quality of voice communications and confirming the Evolium^TM 3G infrastructure's high-speed data and video transfer capability (360Kbps available for the end user), the demonstration included web browsing, access to online information, image transfer, video streaming & downloading, and even transfer of live video from a remote Webcam in Shanghai. In addition, the demonstration included selected mobile applications developed by Fujitsu and being used in Japan, such as mobile reservation and ticketing services.

For the demonstration, the companies installed an Evolium^TM Node B (base station), part of the UTRAN (UMTS Terrestrial Radio Access Network) radio system, in their exhibition booth in Beijing. It was connected to the Evolium^TM UTRAN Radio Network Controller (RNC) and the Alcatel Core Network in Shanghai - a distance of about 1200 km - using E1 lines. Evolium SAS is the joint venture between Alcatel and Fujitsu, which is responsible for product definition and R&D of 2G and 3G/UMTS mobile radio infrastructures. The 3G/UMTS infrastructure not only transports voice communications in circuit mode but also allows transfer of data and high-speed video images in packet mode. These communication links were achieved using Fujitsu's icTerm 3G terminals.

"Combining the resources and talents of Fujitsu, Alcatel and Shanghai Bell Alcatel Mobile Communications (SBAMC), we have constructed a very compelling end-to-end 3G solution and demonstrated its viability and tremendous potential," said Hiroaki Takeichi, president, Network Systems Group and member of the Board, Fujitsu Limited. "The successful 3G implementation at PT/Wireless afforded us an excellent opportunity to jointly promote the Evolium^TM 3G network solution at one of the most important trade shows of the year and we anticipate leveraging this success around the Asia Pacific region."

Ron Spithill, president of Alcatel Asia Pacific, added "Not only have Alcatel and Fujitsu successfully demonstrated the only live 3G without a simulated core network at PT/Wireless, but we have shown to our Chinese customers and prospects that the partnership between Alcatel and Fujitsu, through Evolium SAS, is working well, and is providing full-fledged 3GPP-compliant solutions that work."

All company/product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purpose only.

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[About Alcatel]
Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With 110,000 employees and sales of EURO 31 billion in 2000, Alcatel operates in more than 130 countries.

Alcatel has been present in China since 1983. Its heavy investment in China has now brought forward 17 joint venture and wholly owned companies including six R & D centers, a full scope coverage of activities spanning air, land and sea. It is also a privileged supplier of all major China telecom operators.
http://www.alcatel.com.cn

[About Fujitsu]
Fujitsu is a leading provider of Internet-focused information technology solutions for the global marketplace. Its pace-setting technologies, best-in-class computing and telecommunications platforms, and worldwide corps of systems and services experts make it uniquely positioned to unleash the infinite possibilities of the Internet to help its customers succeed. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5.48 trillion yen for the fiscal year ended March 31, 2001.
Internet: http://www.fujitsu.com/

[About Evolium]
Evolium SAS, an Alcatel-Fujitsu joint venture company established in 2000, combines Alcatel's expertise in GSM, GPRS, and EDGE as well as in ATM and IP technologies, with the advanced experience of Fujitsu as supplier of NTT DoCoMo, including both its highly successful i-mode service and world's first commercial 3G mobile communications service, introduced October 1, 2001.

[About SBAMC]
Shanghai Bell Alcatel Mobile Communication System Co., Mtd. (SBAMC), a joint venture between Alcatel and Shanghai Bell, focuses on the production and engineering services of complete GSM and DSC 1800 mobile networks in China. SBAMC is located in Shanghai's new area of Pudong and has branch offices in 11 provinces.

[Alcatel Press Contacts]  Laurent de Segonzac / Alcatel HQ  Tel: +33 (0)1 40 76 15 04  E-mail: Laurent.de-segonzac@alcatel.fr [Alcatel Investor Relations] Claire Pedini Tel: +33 (0)1 40 76 13 93 claire.pedini@alcatel.fr Chris Welton Tel: +33 (0)1 40 76 13 30 chris.welton@alcatel.fr Emmanuel Spite Tel: +33 (0)1 40 76 16 04 emmanuel.spite@alcatel.fr Pascal Bantegnie Tel: +33 (0)1 40 76 52 20 Pascal.Bantegnie@alcatel.fr Peter Campbell Tel : + 1 972 519 4347 Peter.campbell@usa.alcatel.com [Fujitsu Limited Press Contacts]  Takehiro Hayashi, Scott Ikeda  Fujitsu Limited, Public Relations  Tel: +81-3-3215-5259 (Tokyo)  Fax: +81-3-3216-9365  E-mail: pr@fujitsu.com