Alcatel Denies Patent Infringement Allegations by Fitel USA

DALLAS, Nov. 3, 2003 – Alcatel (Paris : CGEP.PA and NYSE : ALA) today announced that it has filed a response in the U.S. District Court for the Western District of North Carolina, denying the infringement of a patent alleged in a complaint brought by OFS/Fitel.

Alcatel’s patented TeraLight optical fiber has been widely available since 1999 and is the first of a new generation of optical fiber designed for the networks of the future. TeraLight has established new levels of performance with numerous bandwidth and distance records for both 10- and 40-Gbit/s applications.

Prior to the filing of this litigation, Alcatel informed OFS/Fitel that the TeraLight products neither used the Fitel patent nor was the Fitel patent valid. OFS/Fitel was well aware of the invalidity of its patent but nonetheless chose to respond by bringing this litigation. Alcatel strongly believes the marketplace should not be misled by the claims in the Fitel lawsuit regarding Alcatel products that have been in the market for several years. Alcatel will vigorously defend TeraLight and its position in the marketplace by showing that the OFS/Fitel claim is baseless and that the Fitel patent is neither infringed, nor valid, nor enforceable.

About Alcatel

Alcatel provides end-to-end communications solutions, enabling carriers, service providers and enterprises to deliver content to any type of user, anywhere in the world. Leveraging its long-term leadership in telecommunications network equipment as well as its expertise in applications and network services, Alcatel enables its customers to focus on optimizing their service offerings and revenue streams. With sales of Euro 16.5 billion in 2002, Alcatel operates in more than 130 countries.

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