Alcatel and Sun Microsystems Sign Major Cooperation Agreement on Core Network Solutions

PARIS and PALO ALTO, Calif., Oct. 25 /PRNewswire-FirstCall/ -- Alcatel (Paris: CGEP.PA; NYSE: ALA) and Sun Microsystems (Nasdaq: SUNW) today announced that they have signed a major cooperation agreement to further improve the cost-effectiveness of Alcatel's existing IT-based mobile core network solutions. This cooperation agreement also comes under Alcatel's global program for next-generation IT-based telecom solutions announced in February this year, and it underlines Sun's commitment to the telecom market and the AdvancedTCA form factor.

Alcatel is already deploying Sun's carrier grade Netra (TM) servers within its industry-leading Mobile NGN (Next-Generation Network) call server solution, part of the Alcatel 5020 Softswitch range of products and solutions, which is already carrying commercial traffic in commercial networks in North America, Europe and Asia. Similarly, Sun's carrier grade server technology is also used in the Alcatel 5020 Softswitch solution for VoIP applications in fixed networks, as well as in Alcatel's Open Service Platform (OSP) for Intelligent Network (IN) services. Sun already provides solution integration services through its Customer Ready Systems program for Open Service Platform (OSP) for Intelligent Network (IN) services.

The agreement includes a joint R&D cooperation that leverages Sun's expertise in carrier grade servers and operating systems as well as Sun's upcoming Netra AdvancedTCA blade platform and Open Standard implementation, supporting Sun UltraSPARC (TM) and AMD Opteron processors with carrier grade Solaris (TM) 10 and Linux operating systems. This R&D cooperation will initially focus on the Alcatel solutions already using Sun's carrier grade server and operating system technology.

The cooperation is in line with Alcatel's telecom computing framework, a consistent family of IT platforms and middleware, which seamlessly combines the carrier-grade capabilities of Solaris or Linux operating systems and AdvancedTCA blade solutions or carrier grade rack servers as required for the various market segments it serves. As announced earlier this year, this flexible and open framework will gradually be leveraged across Alcatel's entire portfolio of core network solutions, thus accelerating the availability of cost-effective solutions for service providers.

As part of the multi-year cooperation agreement, Sun will be in a privileged position to become the prime platform partner and integrator of choice for Alcatel's next-generation IT-based core network solutions.

"Alcatel's vision is that of open, cost-effective, high-performance, next-generation, carrier-grade platforms, benefiting to the maximum from major IT innovations both in hardware and operating systems. This cooperation with Sun Microsystems is another step for Alcatel in its drive to foster the market adoption of such next-generation telecom solutions," declared Marc Rouanne, chief operating officer of Alcatel's mobile communication activities. "It will reinforce Alcatel's ability to deliver flexible solutions to the operators who want to offer cost-effective VoIP and IP-multimedia services in large volumes."

"With this agreement, Sun clearly vaults to leadership in the ATCA marketplace, with leading edge innovation around not simply the carrier grade hardware platforms, but accelerating momentum around the world's most prolifically deployed open source operating systems, Solaris 10 and Linux," said Jonathan Schwartz, president and chief operating officer of Sun Microsystems. "We're convinced the next wave of IT innovation will occur on the network and through network services, and Alcatel's leadership in key telecom market segments will clearly open new doors to Sun and its ISV partners." About AdvancedTCA

AdvancedTCA, the latest PICMG industry standard specification designed for next generation of carrier grade communications equipment, offers the latest high speed technologies, greater compute density and improved TCO for progressive use by mobile and fixed operators worldwide. 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 12.3 billion and 56,000 employees in 2004, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com . About Sun Microsystems

A singular vision -- "The Network Is The Computer" -- guides Sun in the development of technologies that power the world's most important markets. Sun's philosophy of sharing innovation and building communities is at the forefront of the next wave of computing: the Participation Age. Sun can be found in more than 100 countries and on the Web at http://sun.com . Alcatel press contacts

Aurelie Boutin Tel.: + 33 (0)1 40 76 11 79 aurelie.boutin@alcatel.com

Regine 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 3571

charlotte.laurent-ottomane@alcatel.com Sun Microsystems Press Contacts

Alex Plant Tel: 650-786-3385

alex.plant@sun.com NOTE: Sun, Sun Microsystems, the Sun logo, Solaris, UltraSPARC, and Netra are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.

AdvancedTCA is a trademark of the PCI Industrial Computer Manufacturers Group.

AMD and Opteron are trademarks or registered trademarks of AMD Corporation.