Ytterligare 1500 får gå från Alcatel

----- Original Message ----- November 5, 2001 Dear Colleagues, Due to the on-going economic slowdown in our industry, we are forced to take additional steps to manage costs and restructure the business. These actions are part of a global program to align the company's cost structure with reduced revenue levels. Last week, in conjunction with Alcatel's third quarter earnings results, it was announced that 10,000 positions would be eliminated in Europe, and that further restructuring would take place worldwide. Today, as a part of that on-going restructuring, we will announce several actions resulting in a reduction in our U.S. workforce of approximately 1,500 employees. These actions will affect several areas of our U.S. business. We will be restructuring our Transmission business in light of the slowdown in the U.S. optical networking market. In addition, development activities for our 7770 product will be relocated from Chantilly to the Ottawa facility. We also anticipate a further consolidation of our Access Network businesses to provide cost reductions in both development and support areas. Finally, as we have reduced R&D and operations costs, we have also taken steps to reduce the size of all support groups so that their costs are in line with current demand forecasts. We expect all of these actions to be completed by the second quarter of 2002. Beginning today, we will work with affected employees at each location to provide severance and outplacement assistance. I appreciate your support as we work through these tough times together. Mike Quigley President, Alcatel Americas CEO, Alcatel USA