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Seven-company consortium united behind BT's Project Bluephone

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[May 18, 2004] IVT is a supplier for British Telecom Bluephone Project

London, May 18, 2004 – Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that the seven-company consortium, of which it is head and prime contractor, has been selected to launch BT's groundbreaking Project Bluephone. Alcatel, Ericsson, Motorola, Norwood Systems, IVT, Inventel and MBT will work closely with BT to launch commercially, what will be, Europe's first fully converged fixed-mobile communication service.

As Prime Contractor to the consortium, Alcatel will be drawing on its global system integrator expertise to act as project manager and to unite all seven companies behind a smooth roll out and implementation. Alcatel will also provide the IP security and encryption system between access points and public network. Ericsson will provide access bridge and access point technology that will deliver the unlicensed mobile access (UMA) solution; Inventel and IVT will contribute residential and enterprise access portals; MBT will be the provider of OSS and BSS development and integration. Motorola will be configuring the enterprise section of Project Bluephone as well as providing handsets and future WiFi capability where as enterprise mobility solutions will come from Norwood Systems.

"Project Bluephone will dramatically transform communication for the consumer." commented Alcatel's Alan Mottram on behalf of the consortium "Today users are often presented with a fragmented network-centric product based around the delivery architecture it is presented on. In a "user centric" world as depicted by Project Bluephone, users can enjoy a single telephone number and handset to make and receive calls wherever they are. The customer will be able to use one device and pay with a single bill". Alan Mottram, who is President of Alcatel's Fixed Solution Activities added "Under Project Bluephone, BT, and its consortium of partners, will give the customer the best connection and the same personalised services irrespective of where they are – at home, in the office, or on the move".

BT's Project Bluephone is the first stage of the company's fixed-mobile convergence aspirations. The Project Bluephone consortium have been working closely with BT to develop the technology and are totally committed to the programme delivery.

Johan Bergendahl, Vice President, Marketing, at Ericsson summarised the consortium's view "Each of the member companies is convinced that the customer experience of fixed and mobile service using only one device will generate new revenue streams and excite a whole host of different market sectors across both consumer and enterprise". He went on to say "It is also clear that Project Bluephone gives BT's customers the seamless services that today's "always connected "lifestyle demands and as such will drive the communication standard for the future".

Successful trials have taken place with over 50 users over the last few months and the next wave of beta trials involving 2,000 users is already underway.

Motorola will be providing configuration and support for the enterprise section of Project Bluephone. Commenting on the project, Margaret Rice Jones, Corporate Vice President and General Manager of Motorola's infrastructure business said "The announcement today marks a crucial step forward in making seamless mobility a reality in Europe and in changing the way that people communicate both at work and in their personal lives".

Project Bluephone will be brought to market by the end of the summer and will see full scale launch before the end of 2004. The service will be technology agnostic and in time, will work across other standards including WiFI.

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 to their employees. Alcatel leverages its leading position in fixed and mobile broadband networks, applications and services to bring value to its customers in the framework of a broadband world. With sales of EURO 12.5 billion in 2003, Alcatel operates in more than 130 countries.

About Ericsson
Ericsson is shaping the future of Mobile and Broadband Internet communication through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world. Read more at www.ericsson.com/press

About Inventel
Founded in 1994, INVENTEL is specialised in the conception and development of radio communications equipments. The French company has developed a real expertise in the wireless voice and design for manufacturers many innovating products in DECT standard, today sold in millions of units. Inventel design and commercialise a range of access points and ADSL modems using the wireless technologies WiFi - 802.11b, Bluetooth (long-range) and DECT. The objective of INVENTEL is to be one of the leaders offering voice/data/wireless communication turnkey solutions. For that, INVENTEL has an active programme of partnerships with telecommunications operators, manufacturers or materials integrators, and service providers around the world. www.inventel.com

About IVT
IVT is a world leader in providing Bluetooth turnkey solutions. Since 1998, IVT has continually developed cutting edge products including Bluetooth stack and profiles source code, protocol analyzer, conformance & interoperability testers, application software for PC's, laptop's, PDA's and Smart phone's, a variety of reference designs & patent protected turnkey solutions. IVT was the first company to release the Bluetooth Protocol Stack SDL/C source code in November 1999, followed by the first Bluetooth conformance tester in September 2000, and the first Bluetooth profiles interoperability tester in September 2001. IVT's software and solutions are being widely adopted by hundreds of industry participants for use in their products. IVT has sales offices in Europe, Japan, Korea, Taiwan and an R & D Centre in China. IVT is an associated member of the Bluetooth Special Interest Group (SIG)
For more information, please visit IVT News Center or contact IVT Technical Support

About Motorola
Motorola, Inc. (NYSE: MOT) is a global leader in wireless, broadband and automotive communications technologies that help make life smarter, safer, simpler, synchronized and fun. Sales in 2003 were US$27.1 billion. Motorola creates innovative technological solutions that benefit people at home, at work and on the move. The company also is a progressive corporate citizen dedicated to operating ethically, protecting the environment and supporting the communities in which it does business. For more information: www.motorola.com.

About Norwood Systems
Norwood Systems is a leader in Fixed-Mobile Convergence (FMC) platforms that enable seamless access to voice and data office networks using short-range wireless technologies. From the office or home, Norwood Systems' award-winning FMC platform EnterpriseMobility® allows the freedom and functionality of a mobile phone to be combined with the coverage and cost efficiency of a fixed line. With its head office in Richmond, Norwood Systems also maintains offices in the United States and Australia. www.norwoodsystems.com