Alcatel, Draka confirm creation of world leader in optical fibre, communication cables

Johannesburg, 27 May 2004

Alcatel announced today that it has signed definitive binding documentation with Draka Holding N.V. in relation to the proposed combination of their respective global optical fibre and communication cable businesses. This transaction, which was initially announced on 10 February 2004, will create a world leader in the field of optical fibre and communication cable, in which Draka will own 50.1% and Alcatel will own 49.9%. The name of the new company is Draka Comteq B.V.

As announced earlier, it is intended that completion of the transaction will take place at the end of the second quarter 2004, subject to relevant approvals.

"Safe Harbour" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements relating to developments in Alcatel`s business particularly Alcatel`s participation in Draka Comteq B.V.

These forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those projected. These risks and uncertainties include: uncertainties in customers` businesses; customer demand for products and services; control of costs and expenses; conditions and growth rates in the telecommunications industry and general domestic and international economic conditions. For a further list and description of such risks and uncertainties, see the reports filed by Alcatel with the Securities and Exchange Commission. Alcatel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Draka

Draka Holding N.V. is the holding company of a number of operating companies which are engaged worldwide in the development, production and sale of cable and cable systems. Draka`s operations are centred on its Telecommunication Cable and Systems Product Group and Low-Voltage and Special-Purpose Cable Product Group. Draka has 59 operating companies in 25 countries in Europe, America and Asia. The company has a flat, decentralised organisational structure, in which the operating companies enjoy a large measure of independence and are accountable for their own net turnover and results. Approximately 7 850 people are employed by Draka companies worldwide. Draka Holding N.V., the head office, is established in Amsterdam. In 2003, Draka achieved net turnover of EUR1.4 billion, with a net result of EUR11.2 million. Draka Holding N.V. ordinary shares and subordinated convertible debentures are listed on Euronext Amsterdam. The company has been included in the Next150 indice since 2001. As from 8 July 2002 options on Draka-shares are traded on the Euronext Amsterdam Derivative Markets.

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 EUR12.5 billion in 2003, Alcatel operates in more than 130 countries.