Alcatel and Novatel Wireless Partner to Accelerate HSDPA Service Launch

PARIS and SAN DIEGO, July 20, 2005 /PRNewswire-FirstCall via COMTEX/ -- Alcatel (NYSE: ALA; Paris: CGEP.PA) and Novatel Wireless, Inc. (Nasdaq: NVTL), today announced that both companies have completed thorough interoperability tests between Alcatel Evolium(TM) radio access infrastructure and the Novatel Wireless' Merlin U740(TM) Wireless PC Card Modem in order to enable mobile operators worldwide to undertake live HSDPA (High-Speed Downlink Packet Access) field introductions.

These introductions will leverage the HSDPA interoperability tests already carried out by Alcatel and QUALCOMM, between Alcatel's Evolium(TM) radio access infrastructure and QUALCOMM's Mobile Station Modem(TM) (MSM(TM)) MSM6275(TM) chipset. Furthermore, this chipset was integrated by Novatel Wireless to expand its portfolio of multi-standard Merlin(TM) Wireless PC Card Modems to HSDPA.

An example of this powerful association is both companies' support of tele.ring's HSDPA field introduction, which will be taking place in Austria during the second half of 2005.

"Our association with Novatel Wireless will enable Alcatel to provide 3G operators with a fully-interoperable, end-to-end HSDPA solution allowing them to offer, primarily to their corporate subscribers, new PC-based data- intensive services," said Marc Rouanne, chief operating officer of Alcatel's mobile communications activities. "The flexibility of Alcatel's HSDPA solution, implying a software-only upgrade, will help us accelerate the availability of HSDPA for 3G subscribers worldwide."

"Novatel Wireless has always been at the forefront of the best Wireless WAN broadband technology and access solutions for the mobile industry," said Peter Leparulo, chief executive officer of Novatel Wireless. "We are proud to have been selected by tele.ring for their HSDPA introduction, and are confident that our agreement with Alcatel will benefit both companies' HSDPA business opportunities worldwide."

"tele.ring is relying on Alcatel and on Novatel Wireless for the success of our HSDPA introduction in Austria," declared Elmar Grasser, chief technology officer of tele.ring.

Based on Alcatel's Evolium(TM) end-to-end multi-standard solution, the deployment of Alcatel's HSDPA solution will require a simple software-only upgrade, as all Alcatel's Node Bs already used by 3G/UMTS operators' networks worldwide are fully HSDPA-ready.

About HSDPA

The HSDPA (High Speed Downlink Packet Access) standard marks a similar leap forward for WCDMA and UMTS as EDGE does for GSM in terms of data transmission speed and capacity, essential for 3G evolution. Current field- proven 3G downlink speeds of about 384 kbps (up to 2 Mbps possible according to standards) will be boosted to 14Mbps (maximum value according to standards) with the first-generation HSDPA systems, enabling operators to support a considerably larger number of high data-rate users on a single radio carrier and ensure data-hungry subscribers get the best experience with innovative and existing multimedia services.

About 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 employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EURO 12.3 billion and 56,000 employees in 2004, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com .

About Novatel Wireless

Novatel Wireless, Inc. is a leading provider of wireless broadband access solutions. Novatel Wireless' Merlin(TM) PC Cards, Expedite(TM) Embedded Modems, Freedom Box(TM) Ruggedized Modems, MobiLink(TM) Communications Software Suite, Ovation(TM) 3G Multimedia Application Consoles and Conversa(TM) Software Suite enable high-speed wireless access to personal, corporate and public information. The company delivers innovative 3G solutions to operators, distributors and vertical markets worldwide. Headquartered in San Diego, California, Novatel Wireless is listed on NASDAQ: NVTL. For more information on Novatel Wireless visit http://www.novatelwireless.com . (NVTLG)

SOURCE Alcatel; Novatel Wireless, Inc.

press, Charlie Guyer, +1-978-927-6984, or charlie.guyer@alcatel.com , or Regine
Coqueran, +33-0-1-40-76-49-24, or regine.coqueran@alcatel.com , or investor
relations, Pascal Bantegnie, +33-0-1-40-76-52-20, or pascal.bantegnie@alcatel.com ,
or Nicolas Leyssieux, +33-0-1-40-76-37-32, or nicolas.leyssieux@alcatel.com , or
Maria Alcon, +33-0-1-40-76-15-17, or maria.alcon@alcatel.com , or Charlotte Laurent-
Ottomane, +1-703-668-3571, or charlotte.laurent-ottomane@alcatel.com , all of
Alcatel; or Katie Assar of LEWIS PR, +1-619-516-2559, or katiea@lewispr.com , for
Novatel Wireless, Inc.

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