Alcatel Canada Inc. Announces Redemption of Exchangeable Shares on Toronto Stock Exchange

Alcatel Canada Inc. Announces Redemption of Exchangeable Shares
on Toronto Stock Exchange 


OTTAWA, May 27  /PRNewswire-FirstCall/ -- Alcatel Canada Inc. (TSE:AT)
announced today the Board of Directors' determination that, effective at the
close of business on July 29, 2005, the exchangeable shares of Alcatel Canada
Inc. will be redeemed in accordance with their terms.

Alcatel Holdings Canada Corp. has informed Alcatel Canada Inc. that it intends
exercise its redemption call right and purchase all of the Alcatel Canada Inc.
exchangeable shares (other than those held by Alcatel or any of its affiliates)
as of the redemption date.  On the redemption date, holders will be entitled to
receive one American Depositary Share of Alcatel ("Alcatel ADS") for each
exchangeable share held, less any amounts which must be withheld under any
applicable tax law in payment of the total purchase price.

Under the conditions of the exchangeable shares, on and after July 29, 2005,
the holders of the Alcatel Canada Inc. exchangeable shares will cease to be
holders of such shares.  Upon surrender of certificates representing the
exchangeable shares, such holders shall on and after July 29, 2005 be
considered and deemed for all purposes to be the holders of the Alcatel ADSs to
which they are entitled.

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 in 2004, Alcatel operates in more than 130
countries.  For more information, visit Alcatel on the Internet:
http://www.alcatel.com/ 

DATASOURCE: Alcatel



CONTACT:  press, Charlie Guyer, [phone], or

 , or investor relations, Charlotte Laurent-Ottomane,

[phone], or  , both of Alcatel



Web site:  http://www.alcatel.com/ 

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