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10\28 France - European Nations Submit Joint NATO Milsatcom Solution

Paris, October 28, 2002 ? The Ministries of Defence of France, Italy 
and the United Kingdom have jointly submitted an initial proposal to 
meet the NATO SATCOM Post-2000 capability requirement for SHF and UHF 
space segment.  Alcatel Space, Alenia Spazio and Paradigm Secure 
Communications, as the national military satellite communication 
(Milsatcom) providers of these countries, have prepared major inputs 
to their governments in the submission of this innovative proposal.

As the current NATO IV satellites approach the end of their lives, 
having already exceeded expectations, NATO is now calling for a next 
generation solution to fulfill its ever-increasing milsatcom 
requirements. To ensure coherence with the changing NATO crisis 
management role and to provide a fully deployable communications 
capability in support of such operations, the SATCOM Post-2000 
requirement will update both the space and ground segments to form the 
future NATO system.

NATO's current procurement process entails the issue of separate
Invitations for Bid (IFB) for the UHF, SHF and EHF space segment
requirements. Draft SHF and UHF IFBs were released to participating
nations for 'bidders comment' in January 2002, followed by final IFBs 
in July of this year. The European governements' (with Alcatel Space, 
Alenia and Paradigm) IFB response has just been submitted. This will 
now be followed by reviews and discussions with the NATO C3 Agency and 
final bids are due in Spring 2003. In light of NATO requiring full 
on-orbit capacity by end 2004, a decision is expected in Summer 2003.

The 3 Nations procurement agencies: DGA for France, Teledife for 
Italy, DPA for the UK and industries have agreed to work together to 
offer NATO the optimum SHF and UHF milsatcom solution. The three 
companies, Alcatel Space, Alenia Spazio and Paradigm Secure 
Communications are key players in the European satellite industry and 
have been working closely together for a number of months. The project 
has further backing and support from each of these companies' 
respective shareholders: Alcatel, BAE SYSTEMS, EADS and Finmeccania. 
The essence of this European solution is provision of SHF and UHF 
capacity from the present and future satellite systems of these 
nations.

Alcatel Space, Alenia and Paradigm are already in the process of 
providing next generation national milsatcom solutions, their offering 
is ideally placed to meet the NATO timescales requirement and all 
parties look forward to having the opportunity of working together on 
this exciting new programme.

About Alcatel Space
Alcatel Space, Europe's leading satellite manufacturer and one of the 
three world's leading prime contractors for both civil and military 
space systems, develops satellite technology solutions for 
telecommunications, navigation, optical and radar observation (Helios 
and Sar Lupe programs).  Alcatel Space is also prime contractor for 
the new-generation Syracuse III military communications system which 
will give armed forces significantly higher performance, in terms of 
data throughput, operational flexibility and resistance to 
countermeasures and attack.

About Alcatel
Alcatel (Paris: CGEP.PA and NYSE: ALA) 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, visit 
Alcatel on the Internet: http://www.alcatel.com.

About Alenia Spazio
Alenia Spazio S.p.A., a Finmeccanica Company, is active in
telecommunications, remote sensing, orbital infrastructures and 
scientific satellites. Within the SITAB consortium, it has designed, 
developed and provided to the Italian MoD the SICRAL Military Satcom 
System, comprising space, control and ground segments as a turn-key 
System. Alenia Spazio is now working for the production of a second 
satellite to join SICRAL 1, already in service, and extend the SICRAL 
System present capability.

About Paradigm Secure Communications
Paradigm Secure Communications was earlier this year selected as 
preferred bidder for the UK MOD's Skynet 5 military satellite 
communications service.  The Paradigm team, led by Paradigm Secure 
Communications, was formed by Astrium in 1999. For Skynet 5, Paradigm 
Secure Communications will contract with Paradigm Services for full 
service delivery and Astrium for the Skynet 5 satellites and ground 
systems. Both Paradigm companies will become joint ventures between 
BAE SYSTEMS and EADS, European Aeronautic Defence and Space company on 
contract award.

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