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Thomson multimedia and Alcatel demonstrate end to end multimedia delivery over mobile infrastructure.

Enabling Technology based on efficient MPEG4 – Part 10 Video Compression, delivering unique picture and sound quality.

Cannes-20 February, 2002 - Following up on their joint initiative about multimedia content delivery over DSL last December, Alcatel (Paris: CGEP.PA and NYSE: ALA), and Thomson multimedia (Paris Euroclear: 18453 and NYSE: TMS), global leaders in broadband access and entertainment solutions, demonstrate multimedia content delivery in the portable mobile space with a demonstration of streaming video content over a 3G cellular infrastructure.

The novelty of this demonstration at the 3GSM World Congress is the use of a more efficient video compression format based on MPEG4-Part10, an open standard, which holds the promise of improved efficiency suited for bandwidth precious cellular networks. Both companies consider that this breakthrough will unleash the potential of the entertainment video delivery over a broadband wireless network infrastructure. The 3GSM World Congress is probably the ideal tradeshow to showcase and test new technology evolutions. This event brings together network operators, equipment, solutions and technology vendors.

With this demonstration of an end-to-end delivery system, Thomson and Alcatel enable the mobile industry to deliver value added services based on encoders and video servers from Nextream (a Thomson/ Alcatel joint venture), network infrastructure from Alcatel and end user equipment from Thomson. Both Thomson and Alcatel will be leveraging their mutual know how in the delivery of multimedia entertainment content with differentiating features including power and bandwidth efficient audio/video codec technology. Nextream will capitalize on its vast experience in the area of digital video processing and delivery to serve this new market segment.

Thomson develops an integrated product offering of technological systems, products and services along the value chain of audio and video content distribution. While popular digital delivery channels today cover Satellite, Cable, DSL and Digital Terrestrial, Thomson multimedia believes that 3G Mobile Network infrastructure in conjunction with other wireless delivery media will enable cost-effective delivery of selected audio and video content, and prepares for their introduction.

Jean-Charles Hourcade, Thomson Senior Vice-President Research & Innovation, stated : ”The development of solutions for delivery of audio and video entertainment content through wireless networks is a natural evolution of the positioning of Thomson. Further radical improvements of the audio and video compression and coding technologies will allow consumers to continue to enjoy their favorite entertainment content anywhere and anytime, expanding their viewing experience into mobility situations. Our partnership with Alcatel will allow us to offer innovative and cost-effective end-to-end solutions, adding a new and powerfull dimension to the entertainment industry.”

Etienne Fouques, president of Alcatel's Carrier Networking activities, added: “The advent of personal entertainment marks a major evolution for mobiles that will generate new revenues for the 3G. Our partnership with Thomson and our advance in video integration over telecom networks benefits simultaneously to DSL and 3G networking”

About Alcatel
Alcatel designs, develops and builds innovative and competitive communications networks, enabling carriers, service providers and enterprises to deliver any type of content, such as voice, data and multimedia, to any type of consumer, anywhere in the world. Relying on its leading and comprehensive products and solutions portfolio, stretching from end-to-end optical infrastructures, fixed and mobile networks to broadband access, Alcatel's customers can focus on optimizing their service offerings and revenue streams. With sales of EURO 25 billion in 2001 and 99,000 employees, Alcatel operates in more than 130 countries.
For more information, visit Alcatel on the Internet:

About Alcatel ‘s Evolium™ solutions
Alcatel's Evolium™ solutions meet the requirements of mobile operators whether it is for the deployment of new networks or the optimization of existing infrastructures. These solutions ensure an efficient evolution towards 3G, minimizing the migration costs and protecting operators' investment. Alcatel has today an end-to-end solution offering, including the radio and the core network systems, the services’ platform and the mobile terminals. Alcatel's offering is also prominent in the field of applications and services. Its Open Services Platforms, where it is the world's leader, provides a suite of applications that allow customers to migrate efficiently from GSM to the next generation of value added services. Alcatel's Nextenso software house enjoys an advanced position in the creation and the management of new- generation Internet portals and content.
By creating Evolium SAS, an Alcatel-Fujitsu company, Alcatel clearly reinforces its position in both mobile infrastructure and mobile Internet. Evolium SAS 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. By the end of 2000, NTT DoCoMo had twenty million i-Mode subscribers in Japan and will start the commercial operation of its 3G mobile communication service in 2001. Alcatel, which played a vital part in developing the mobile Internet market, in particular through the successful roll out of GPRS commercial networks world-wide, has today a timely UMTS offering.

About Thomson multimedia
With sales of 10.5 billion Euros (U.S. $ 9.3 billion) in 2001 and 73,000 employees in more than 30 countries, Thomson multimedia (Paris Euroclear: 18453) (NYSE: TMS), provides a wide range of video (and enabling) technologies, systems, finished products and services to consumers and professionals in the entertainment and media industries. To advance and enable the digital media transition, Thomson multimedia has five principal activities: Digital Media Solutions, Displays and Components, Consumer Products, Patents and Licensing, and New Media Services. The company distributes its products under the THOMSON, RCA and TECHNICOLOR brand names.

Press Relations
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