Alcatel and Wavecom Sign Agreement

Issy-les-Moulineaux, France -July 05, 2000

Wavecom S.A. (NASDAQ: WVCM; Nouveau Marché: WAVECOM), a leading developer of digital wireless standard modules (WISMO™), today announced it has signed an agreement of understanding with Alcatel, one of the world's top four GSM mobile phone manufacturers.

The agreement calls for Wavecom to supply WISMO3 GSM modules to Alcatel. Under the terms of the agreement, Alcatel will integrate Wavecom's WISMO3 solution in one of its new top-of-the-line mobile phones, to be commercially available in 2001. The new line of futuristic-looking Alcatel mobile phones will be very compact.

"This cooperation with Wavecom will enable us to expand our line of products rapidly to address all the sectors of this dynamic market. In 2001, Alcatel will offer an even more complete product family, ranging from the simplest to the most sophisticated mobile phones," explains Jacques Combet, President of Alcatel's mobile telephone business.

"Alcatel's decision reinforces our conviction that the WISMO solution can be used effectively by companies that have already developed their own technology," comments Wavecom Chief Executive Officer Aram Hékimian. "With the WISMO3, our clients are able to go to market with the most integrated solution in the world."

The WISMO3 is the first technology to offer a GSM solution in a single component. Thanks to the Ball Grid Array technique, the WISMO3 can be mounted and soldered to a circuit board like any other component.