Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has completed the first phase of the project with Mobitel, a subsidiary of VimpelCom (NYSE: VIP), a provider of telecommunication services operating under the "Beeline" brand, to deploy a new mobile network in Georgia. The contract between Mobitel and Alcatel-Lucent was signed in September 2006.

As part of the first phase of the project, Alcatel-Lucent deployed a new mobile GSM/GPRS/EDGE network covering Tbilisi, the capital of Georgia, while preparing for the introduction of 3G/UMTS and/or WiMAX. Implementation of the first phase has enabled Mobitel to commercially launch its services to subscribers in Georgia. Once the project is completed, Alcatel-Lucent’s mobile solutions will enable Mobitel to provide advanced mobile communications services to subscribers throughout Georgia.

Under the terms of this contract, Alcatel-Lucent delivered its industry-leading Alcatel-Lucent Evolium™ GSM/GPRS/EDGE end-to-end solutions, including Base Station Sub-systems (BSS), NGN-based Mobile Switching Centers (NSS) as well as operation and maintenance support services. Alcatel-Lucent also delivered a high-availability IP/MPLS network based on the Alcatel 7710 Service Router.

“Georgia is an important market for our company, and we hope to win a leading position in this market. We are glad that we managed to commercially launch a new network within a short time frame,” said Sergey Avdeev, executive vice-president on business development in CIS and chief technical officer of VimpelCom. “Thanks to Alcatel-Lucent experience in turnkey end-to-end projects we are able to offer already today to the customers in Georgia advanced communication services.”

“This contract further strengthens our long-term cooperation with VimpelCom, and we are very proud to support VimpelCom in its drive to become one of the leading operators in CIS market,” said Johan Vanderplaetse, vice-president for Alcatel-Lucent activities in the Commonwealth of Independent States (CIS). “The network infrastructure Alcatel-Lucent delivered will help Mobitel customers enjoy some of the most advanced communication services.”

Alcatel-Lucent is one of the leading suppliers in providing advanced mobile communication solutions in Russia and in the CIS, a position the company established in 1994 when it introduced the first Russian GSM network in the city of Nizhniy Novgorod.

Alcatel-Lucent is a leader in high growth markets with an 18% mobile market share. According to Synergy Research Group, Alcatel-Lucent was #2 in the Services Edge Router category in Q2 2006, with 19% market share, following five consecutive quarters of market share gain.

About Mobitel

Mobitel owns GSM-1800 cellular licenses that are valid through mid-2013. Mobitel was founded in November 2003 and launched its commercial operations in 15th of March 2007.

About VimpelCom

VimpelCom Group comprises mobile operators, providing telecommunication services in Russia and Kazakhstan, Ukraine, Uzbekistan, Tajikistan with recently acquired operators in, , Georgia and Armenia. The VimpelCom Group’s license portfolio covers approximately 240 million people. Geographically it covers 78regions in Russia (with 136.5 million people, representing 94% of Russia’s population) as well as the entire territories of Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia. VimpelCom was the first Russian company to list its shares on the New York Stock Exchange (“NYSE”). VimpelCom’s ADSs are listed on the NYSE under the symbol “VIP”. For more information, see

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end-users. As a leader in fixed, mobile and converged broadband networking, IP technologies, applications, and services, Alcatel-Lucent offers the end-to-end solutions that enable compelling communications services for people at home, at work and on the move. With operations in more than 130 countries, Alcatel-Lucent is a local partner with global reach. The company has the most experienced global services team in the industry, and one of the largest research, technology and innovation organizations in the telecommunications industry. Alcatel-Lucent achieved adjusted proforma revenues of Euro 18.3 billion in 2006 and is incorporated in France, with executive offices located in Paris. [All figures exclude impact of activities to be transferred to Thales]. For more
information, visit Alcatel-Lucent on the Internet: