U.S. Cellular Selects Alcatel for 
Microwave Wireless Transport Equipment

    Alcatel (NYSE:ALA), the world leader in point-to-point wireless transmission technology, has signed a multi-million dollar agreement with U.S. Cellular (AMEX:USM) to deploy the Alcatel MDR-8000 microwave digital radio across the U.S. Cellular wireless network.

    The microwave wireless transport equipment will expand U.S. Cellular's network capacity and capability.

    Under the two-year agreement, U.S. Cellular will deploy the Alcatel MDR-8000 microwave digital radios to deliver enhanced wireless services, increased network capacity and connectivity to its customers. The reliability and scalability of this microwave transport platform will expand U.S. Cellular's wireless telecommunication services at reduced costs and improve the level of support the company provides to its customers.

    "Alcatel's wireless transport equipment will enable U.S. Cellular to expand our wireless network and ensure the highest quality of service to our customers," said Hichem H. Garnaoui, vice president of national network operations for U.S. Cellular. "The scalable capacity of this wireless platform will create a more efficient network architecture and better position us for future growth."

    "Our wireless transmission products are key to U.S. Cellular's network needs, delivering carrier class robustness and promoting customer satisfaction," said Bruno Piacentini, president of Alcatel's wireless transmission activities. "The flexibility and low-cost deployment offered by Alcatel's microwave radios enable U.S. Cellular to increase and allocate their network capacity where and when the customer traffic grows."

    About U.S. Cellular
    U.S. Cellular Corporation, the nation's eighth-largest wireless service carrier, provides wireless service to more than 3.9 million customers in 155 markets throughout 26 states. The Chicago-based company operates on a customer satisfaction strategy, meeting customers' needs by providing a comprehensive range of wireless products and services, superior customer support and a high quality network. For more information about U.S. Cellular, www.uscellular.com.

    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, Alcatel operates in more than 130 countries. For more information, http://www.alcatel.com.

    About the MDR-8000
    The MDR-8000 is Alcatel's latest generation of digital microwave radio for long haul, point to point wireless communications. It offers customers the widest array of capacities -- from 2 to 16 DS1, 1 to 3 DS3, or OC-3 -- and the most radio frequency options -- covering licensed and unlicensed bands from 5.8 GHz to 11 GHz. Compact mechanical dimensions allow operators to place the MDR-8000 in cramped spaces, yet without sacrificing system performance and availability. This scalable and readily deployable architecture provides reliable wireless backbone communications for local exchange carriers, cellular operators, railways, pipelines, utilities, public safety agencies and private enterprise.

    About Alcatel's wireless transmission activities
    In point-to-point microwave radio transmission, Alcatel's full-range catalogue is composed of high, low and medium capacity microwave systems -- based on PDH, SDH and North American standard (SONET) technologies -- for mobile and fix broadband distribution, private and utilities network applications, voice and data (IP, ATM, Fast Ethernet) traffic. A natural complement to optical fiber transmission, it supports a full range of frequency bands, spectrum efficiency and network/radio configurations. These microwave radio systems can be managed by Alcatel's unified and fully integrated network management platform, and through the simplified network management protocol, and in all cases provide integration facilities with external management systems in multi-vendor fix or mobile environment. In the last five years, Alcatel has installed more than 300,000 microwave radios in more than 150 countries.

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             CONTACT: 
             Alcatel
             Press Contact:
             Jamie Horton, 707/792-7843
             Jamie.horton@alcatel.com
             or
             Investor Relations:
             Peter Campbell, 972/519-4347
             Peter.campbell@alcatel.com
             or
             Industry Analyst Contact:
             Julie Buckley, 707/792-7820
             Julie.buckley@alcatel.com
              or
             U.S. Cellular
             Press Contact:
             Michele M. Merrell, 773/399-4922
             Mmerrell@uscellular.com