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The Northern section of Line 11 will be built in three stages. Phase one, which is to be completed in 2009, is 44.9km long and will serve 21 stations with 58 trains from Jiading North station to Jiangsu Road station, including a branch line to Anting station. Phase two, which is scheduled to be ready for passenger service in 2012, will initially span across 14.6 km serving eight stations from Shanghai Jiao Tong University to Sanlin station. A further extension is planned to service five additional stations in the future.

"These new contracts expand the train network, which is served by Thales' world leading Seltrac CBTC solution. With more than 20 years' experience, Thales has previously developed and smoothly implemented the solution in many cities throughout the world. On the Shanghai project, lines six, eight and nine, which stretch across 90km have been successfully put into operation within two years .The efficient and effective implementation of this project reflects the strength and expertise of our consortium," said Jean-Pierre Forestier, Vice President, Managing Director of Thales Rail Signalling activity.

"This state-of-art communications and signalling solution has been tailor made for the Shanghai Shentong Metro Co, Ltd., to meet their stringent requirements." said Michael Fabian, head of Alcatel-Lucent's Industry and Public Sector activities. "Our highly skilled local team, along with our global network integration expertise ensures that the solution will be deployed with minimal risk."

The contracts further highlight Thales' and Alcatel-Lucent's expertise in serving the urban rail industry. Thales is a worldwide leader in the supply of fully automated train control and communications solutions. Alcatel-Lucent is the network integrator of choice for carriers and enterprises seeking to solve complex communications challenges.

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About Thales
Thales is a leading international electronics and systems group, addressing defence, aerospace and security markets worldwide. Thales's leading-edge technology is supported by 22,000 R&D engineers who offer a capability unmatched in Europe to develop and deploy field-proven mission-critical information systems. To this end, the group's civil and military businesses develop in parallel and share a common base of technologies to serve a single objective: the security of people, property and nations. The group builds its growth on its unique multi-domestic strategy based on trusted partnerships with national customers and market players, while leveraging its global expertise to support local technology and industrial development. Thales employs 68,000 people in 50 countries with 2007 revenues of €12.3 billion.
Improving the quality of service and security in the transport sector
Thales provides solutions for three main transportation segments: rail signalling, integrated communication and supervision systems and ticketing. Thales offers a comprehensive range of integrated, modular solutions for the safe transportation of people and goods covering all forms of transport: from bus, metro, tramway and regional train networks to mainline (high-speed) links and road transport.

About Alcatel-Lucent
Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end-users. As a leader in fixed, mobile and converged broadband networking, IP technologies, applications and services, Alcatel-Lucent offers the end-to-end solutions that enable compelling communications services for people at home, at work and on the move. With operations in more than 130 countries, Alcatel-Lucent is a local partner with global reach. The company has the most experienced global services team in the industry, and one of the largest research, technology and innovation organizations in the telecommunications industry. Alcatel-Lucent achieved revenues of Euro 17.8 billion in 2007 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com

Alcatel-Lucent Press Contacts
Régine Coqueran
Tel: + 33 1 40 76 49 24
regine.coqueran@alcatel-lucent.com

Mary Ward
Tel: + 1 908 582 7658
mary.ward@alcatel-lucent.com

Thales Press contacts
Victoire Le Barazer,
Security Solutions & Services
Tel: +33 1 73 32 13 20
victoire.lebarazer@thalesgroup.com

Caroline Philips,
Corporate Communications
Tel: +33 1 57 77 86 26
caroline.philips@thalesgroup.com