Paris, April 7, 2003. Alcatel (Paris: CGEP.PA and NYSE: ALA) and MontaVista Software, Inc., the company powering the embedded revolution, today announced the signing of a major multi-year corporate contract for MontaVista™ Linux® Carrier Grade Edition, an industry standard Linux platform for telecommunications applications. MontaVista® Linux® Carrier Grade Edition will be a building block for Alcatel products with embedded or real-time constraints.

“With the convergence of voice and data, communications companies building on next generation platforms are being called upon to guarantee the delivery of end-user services in an affordable way,” said Christof Ebert, Alcatel’s director Software Coordination. “MontaVista Linux Carrier Grade Edition provides a standards-based, open architecture, software development platform that is reliable and scalable and more importantly, is available today.”

After an in-depth review, Alcatel has concluded that MontaVista Software, with its industry leading products and rapidly growing acceptance within the telecommunications industry, can effectively meet its growing and complex needs.

“Alcatel’s vote of confidence in MontaVista Software is further proof of our emergence as the development platform of choice for use in leading-edge communications applications,” added Jim Ready, CEO and President, MontaVista Software and embedded industry pioneer.

About MontaVista Linux Carrier Grade Edition
MontaVista Linux Carrier Grade Edition (CGE) enhances standard Linux with key features for deployment in carrier grade environments. It is designed specifically for network equipment providers as a standard, modular, communications platform. CGE provides essential high availability features, including CompactPCI hot swap drivers, redundant Ethernet and RAID1. Carrier Grade Edition also delivers a hardened driver architecture and fault management services, and other carrier grade capabilities. MontaVista has also added a long list of unique system serviceability enhancements including:

• Kernel resource monitoring framework
• System event broker and event log with remote access
• Kernel dumps across LAN, in-memory, disk
• Multithreaded core dump
• Boot Cycle Detection
• Online Debugging and Patching
• IPMI Driver Support
• Diskless System Support
• Serial Console Support

MontaVista Linux Carrier Grade Edition 3.0 is available now. It supports a wide range of Intel architecture-based platforms. Support for other architecture platforms is also planned. For more product information, please visit http://www.mvista.com/cge/index.html or email to info@mvista.com.

About MontaVista Software
MontaVista Software is a leading global supplier of systems software for intelligent connected devices and associated infrastructure. MontaVista powers the embedded revolution by providing GNU/Linux-based open-source software solutions. Founded in 1999 by real-time operating system (RTOS) pioneer James Ready, MontaVista offers a family of products under the MontaVista Linux umbrella that address broad-based software developer needs encompassing applications ranging from communications infrastructure to consumer electronics. Multiple editions of MontaVista Linux are available including — Professional, Consumer Electronics and Carrier Grade — along with complementary technology products providing powerful Java and graphics development capabilities.

Headquartered in the heart of Silicon Valley, in Sunnyvale, Calif., MontaVista Software is a privately held company funded by leading investors such as Alloy Ventures, US Venture Partners, RRE Ventures, WR Hambrecht + Co., IBM, Intel Capital, Sony, Panasonic (Matsushita), Toshiba America and Yamaha Corporation. For more information about MontaVista Software, please visit http://www.mvista.com.

About Alcatel
Alcatel provides end-to-end communications solutions, enabling carriers, service providers and enterprises to deliver content to any type of user, anywhere in the world. Leveraging its long-term leadership in telecommunications network equipment as well as its expertise in applications and network services, Alcatel enables its customers to focus on optimizing their service offerings and revenue streams. With sales of EURO 16.5 billion in 2002, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com

Contacts:

MontaVista Software
Joe Samagond
Director of Marketing and Corporate Communications
MontaVista Software Inc.
Phone: (408) 328-9234
E-mail: jsamagond@mvista.com

Patricia Colby
PR Strategy and Business Development
Pacifico Inc.
Phone: (408) 293 8600 x340
E-mail: pcolby@pacifico.com