Alcatel Upgrades Detroit’s Downtown People Mover (DDPM) Train Control to Enhance Operations

Paris, June 26, 2003 – Alcatel announced that its Canadian Transport Automation division has been awarded a contract by Detroit Transportation Corporation (DTC) to upgrade its existing SelTrac ® communications-based train control and NetTrac central control systems. The value of the contract is USD 6 million.

The DDPM went into revenue service in 1987 with Alcatel’s original SelTrac S40 moving-block system. Since then, Alcatel has continually evolved various subsystem and system management features that include data logging and performance monitoring. These functions, along with expandable open standards architecture and system interfacing capability, will now provide DTC with increased train availability and operation management flexibility.

Alcatel and DTC have planned for an accelerated timetable for installation and testing of the new system.

This will ensure its completion shortly after the scheduled re-opening of the Renaissance station with full regular service by July 2004.

“SelTrac has served us well over the years. As the system has matured, SelTrac’s adaptability has allowed us to operate the People Mover in a flexible manner, including bi-directional shuttle mode since the closure of the Renaissance Center Station for renovation last year. We are confident that our modernization plan will meet our present and future needs to provide excellent service to our passengers,” said Claryce Gibbons-Allen, General Manager, Detroit Transportation Corporation.

“As we have done for our earliest SelTrac S40 customers -- Toronto Scarborough RT, Vancouver SkyTrain -- this project enables DTC to benefit from cost-effective upgrading (with no system downtime due to our seamless cutover capability), and to achieve optimization of their investment and system performances. It is another example of our system life-cycle support made possible with modular product evolution. ” said Ron Young, Customer Care Manager, Alcatel Transport Automation.

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. For more information, visit Alcatel on the Internet: http://www.alcatel.com

About Alcatel Transport Automation Solutions

Alcatel Transport Automation Solutions (TAS) supplies train control, signaling, interlocking, control center and integrated rail communications technology worldwide. With a work force of several thousands people, TAS operates mainly in Austria, Canada, France, Germany, Portugal, Spain, Switzerland, UK, and USA. For Urban Rail Transit operators, Alcatel’s offering includes SelTrac®, the world’s leading communications-based train control solution, NetTrac MT for central train management and supervision, and LockTrac, the world’s leading solid-state interlocking solution. Alcatel’s SelTrac® solutions have been chosen by 23 customers worldwide. In North America, SelTrac S40 controls the San Francisco Market Street subway; JFK, Dulles, Tampa and Newark International Airport People Movers; Jacksonville ASE; and the Las Vegas Monorail.

For more information, visit Alcatel TAS on the Internet: http://www.alcatel.com/tas

Contacts:

Renaud DA, TAS HQ Communication Director, renaud.da@alcatel.fr

Roger FRADGLEY, TAS Canada Communication Manager +1-416-742-3900, ext. 5238, roger.fradgley@tas.alcatel.ca