Alcatel and Pirelli completed their transaction in submarine telecommunications

August 26, 2004 - Alcatel and Pirelli announced today that they have completed the transaction regarding their respective submarine telecommunication businesses, which was announced in a press release dated 6th May 2004 - after having received approval of Italian Antitrust Authorities.

As outlined in the agreement, Alcatel has acquired certain Pirelli related assets and obtain intellectual property rights, while Pirelli has taken a 5% shareholding in Alcatel's submarine business, with associated mutual put and call options.