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1\20 France - Russian Sat Comms Co selects Alcatel Space 
 for the delivery of Express AM2 and AM3 payload modules
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Paris, January 20, 2003 - The Russian Satellite Communications Company
(RSCC) and Alcatel Space have signed a contract to develop and deliver 
the payloads for the Express AM2 and AM3 communications satellites. 
The two payloads will be manufactured in Alcatel Space's Toulouse 
plant and then integrated into "Express-AM" platforms produced by NPO- 
PM in Krasnoyarsk, Russia.

The new Russian Express AM2 and AM3 communications satellites will 
carry 16 C-band transponders, 12 Ku-band transponders and 1 L-band 
transponder as well. The spacecraft are designed to provide digital TV 
and radio broadcasting, telephony, data transmission channels, 
videoconferencing services and Internet access. The satellites will be 
also used to deploy communication networks by applying VSAT technology 
across the territory of Russia, CIS countries, Europe, Asia and 
Africa.

Alcatel Space has extensive experience in the development of Russian
spacecraft equipment. Three RSCC "Express-A" satellites at 11ø W, 40ø 
E and 80ø E are equipped with the payloads produced by Alcatel Space. 
The new Russian Express AM11 and AM22 communications satellites are 
being developed under the order of RSCC and NPO-PM and will be 
equipped with the Alcatel Space payloads.

Mr. Alexander P. Duka, Director General of RSCC, has declared, "The
progress of the joint work undertaken by RSCC and Alcatel Space, the 
high quality standard, and the ability of Alcatel Space to maintain 
"Express-A" contract due dates pave the way for long-term cooperation 
between our companies and guarantee the new joint project to be a 
success".

Pascale Sourisse, Chairman and CEO of Alcatel Space, underlines, "This
contract is the fruit of our partnership and industrial collaboration
policy with Russia that started in the mid-1990s. Following Sesat, 
launched in 2000, the delivery of payloads for the Express A1R, A2 and 
A3 satellites and operations under way for the AM11 and 22 satellites, 
this latest contract confirms our position as a reference partner to 
the Russian Space industry for communications satellites. We have now 
won contracts for seven of the eight payloads ordered by the Russian 
Federation's space program.  The experience gathered by working with 
NPO-PM on these programs has driven a substantial improvement in 
competitiveness and helped us win the RSCC contract".


About Alcatel
Alcatel (Paris: CGEP.PA and NYSE: ALA) designs, develops and builds
innovative, competitive communications networks used by operators, 
service providers and companies to provide all content (voice, data or 
multimedia) to all customers throughout the world. Using the complete 
portfolio of solutions ranging from optical infrastructures to fixed 
and mobile networks and broadband access, Alcatel customers can devote 
themselves to optimizing their service offers and sources of revenue. 
With a turnover of 25 billion euros in 2001, Alcatel is present in 
more than 130 countries.

About Alcatel Space
Alcatel Space is worldwide number 3 and European leader in satellites. 
With civil and military application know-how, Alcatel Space develops 
satellite solutions for telecommunications, navigation, radar and 
optical observation, meteorology, and sciences. The company is also 
the leading European prime contractor of earth observation, 
meteorology and navigation segments, and for operating space systems. 
A 100% subsidiary of Alcatel, Alcatel Space had a turnover of 1.4 
billion euros in 2001.

About RSCC
Russian Satellite Communications Company is a national satellite
communications operator. The Enterprise is registered at International
Telecommunications Union. RSCC is a shareholder of Intelsat and 
Eutelsat and a major partner of International Organization of Space 
Communications "Intersputnik". The RSCC domestic market share is 83% 
in telecommunications. RSCC takes the 15th place among 42 operators 
world-wide with respect to provision of satellite communications 
services. RSCC possesses the largest constellation comprising 10 GEO 
satellites operating in the C-, Ku- and L- bands. The satellites are 
positioned in the orbit between 14øW and 145øE.  RSCC leases space 
segment capacity on "Gorizont", "Express-A",
"Ekran-M", "Eutelsat W4" 
satellites as well as Earth Station facilities to distribute TV/radio 
programs, to set up satellite telephone channels, to transmit data, to 
provide Internet access and videoconferencing services. The Enterprise 
deploys regional satellite distribution TV/radio networks,
multi-service networks to provide wide range of telecommunications 
services by applying VSAT solution. RSCC ensures access to the space 
segments of "Intelsat" and "Eutelsat" satellites, controls and 
monitors "Express-A", "Eutelsat", "Intelsat"
and "LMI" spacecraft.

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