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ALCATEL GETS A SHARE OF A NEW US$ 236 MILLION TRANSATLANTIC CONTRACT

Paris, February 11, 1998 -- Alcatel Submarine Networks together with Tyco Submarine Systems Ltd. (TSSL), and Pirelli Cables and Systems SpA, through its affiliate Maristel SpA, signed today a US$236 million supply contract for the Columbus III Cable System. Scheduled for service in July 1999, this 10,000km fiber optic undersea cable system will directly link the United States with southern Europe.

The Internet and other multi-media applications are exponentially escalating trans-atlantic bandwith requirements. With up to 10 Gb/s of initial transport capacity, the Columbus III Cable System will readily meet these increasing needs. Columbus III is easily upgradeable to 40 Gb/s -- enough to carry approximately one half million simultaneous calls.

Mr. Christian Reinaudo, President of Alcatel Submarine Networks, said; "Having been a supplier to the earlier Columbus systems – I and II – we are delighted to have been chosen to participate in this third link which will help to cater for the continuiyng increase in traffic capacity demands between America and Europe".

Columbus III will connect Hollywood, Florida; Ponta Delgada, the Azores; Lisbon, Portugal; Conil, Spain; and Mazara, Italy. The network will utilise wavelength-division multiplexing (WDM), optical amplification and Synchronous Digital Hierarchy (DSH) transmission technology.

The two-fiber pair cable system will be owned and operated by a group of over thirty of the world's leading international telecommunication carriers including AT&T, Telecom Italia, Telefonica de Espana and Companhia Portuguesa Radio Marconi. MCII and Trescom were instrumental in planning the cable system.

Alcatel, the Telecom segment of Alcatel Alsthom, designs, manufactures, and markets complete telecommunications systems. Activities include fixed switching networks, transmission systems, access systems, mobile communications infrastructure, business networking, submarine cable networks, as well as radiocommunications, space, and defense systems. With operations in over 130 countries, Alcatel is a leading-edge supplier in the majority of its business. In 1996, the Telecom segment of Alcatel Alsthom registered total sales of FF 71 billion (US$ 13.65 billion). For more informations, visit Alcatel via the web.

Alcatel Submarine Networks, the part of the Alcatel group responsible for all its undersea telecommunications networks activities, is currently working on contracts around the world valued at over US$1.2 billion.

TSSL, a wholly owned subsidiary of Tyco International Ltd., is a worldwide supplier of undersea communications systems and services, and has successfully designed, manufactured and installed approximately 250,000 kilometers of undersea cable systems. TSSL also operates a fleet of seven cable ships and owns undersea cable, repeater and transmission equipment manufacturing facilities.