For Immediate Release
March 22, 2004

ALCATEL DEVELOPS ALLIANCE WITH AIRNET COMMUNICATIONS
TO STRENGTHEN ITS WIRELESS OFFERING WITHIN THE NORTH AMERICAN MARKET

Paris and Plano (Texas), March 22, 2004 - Alcatel (Paris: CGEP.PA and NYSE: ALA) and AirNet Communications Corporation (NASDAQ: ANCC), the technology leader in broadband software defined base station products for wireless communications, announced today that they signed an Original Equipment Manufacturer (OEM) agreement whereby Alcatel will be able to purchase GSM Base Station Subsystem (BSS) radio products from AirNet for resale to Alcatel's customers. Alcatel already received purchase orders following this agreement from Oklahoma-based MBO Wireless, Inc., for GSM wireless network infrastructure equipment, software and related services to be deployed in North America over the next four quarters.

AirNet's GSM base station product line, which serves all GSM frequency ranges with both voice and data technology, complements Alcatel's Evolium™ product capabilities for 2.5G network solutions for the North American mobile market.

The five year agreement permits Alcatel to sell AirNet's products including the AdaptaCell® base station, the SuperCapacity™ base station incorporating adaptive array technology. AirNet's adaptive array technology allows the use of the same frequency in two adjacent cells which significantly improves the frequency usage, thus reducing the amount of spectrum and cell sites required. The agreement also includes the AirSite® Backhaul Free™ base station enabling the use of GSM frequencies to link several Base Stations together.

“Alcatel continues to break new ground by offering operators our integrated SuperCapacity™ adaptive array solution,” said Glenn Ehley, President & Chief Executive Officer for AirNet Communications. “This cooperation will leverage Alcatel's sales in North America in both new and established accounts. Thanks to Alcatel, we anticipate unprecedented market access and acceptance of AirNet products. This OEM Agreement is a strong endorsement of our technology vision for GSM voice and high speed data wireless infrastructure.”

“Our strategy to strengthen Alcatel's presence in the North American GSM market with both voice and high-speed data applications can be accelerated with the AirNet SuperCapacity™ base station including adaptive array technology,” said David Owen, Senior Vice President of Alcatel in North America. “AirNet's unique product solution will be integrated into our global mobile portfolio to provide mobile operators with end-to-end revenue generating solutions. The AirSite® Backhaul Free base station also enhances the existing Alcatel product range offering by providing cost-effective coverage for both rural and highway applications.”

The Alcatel Evolium™ solution comprises a Wireless Media Gateway, a radio access network (Base Stations and Base Station Controllers), Mobile Switching Centers, Home Location Registers, an Intelligent Network platform for value-added services, as well as a GPRS core network infrastructure. Alcatel Evolium™ end-to-end solutions support GSM, High Speed Data, GPRS, EDGE and UMTS for 3G technologies.

About MBO Wireless

MBO Wireless is a subsidiary of MBO Corporation, a privately held firm which owns and operates seven telephone, cable television, video and wireless communications companies. MBO provides bandwidth services to wholesale and business clients with voice, video, data, Internet, wireless, and cable TV requirements. The Company owns more than 940 miles of fiber optics which link its subsidiaries and affiliates on SONET rings throughout Oklahoma, and carries traffic for most of the nation's major service providers..

About AirNet

AirNet Communications Corporation is a leader in wireless base stations and other telecommunications equipment that allow service operators to cost effectively and simultaneously offer high-speed data and voice services to mobile subscribers. AirNet's patented broadband, software-defined AdaptaCell® base station solution provides a high capacity base station with a software upgrade path to high-speed data. The Company's Digital AirSite® Backhaul Free base station carries wireless voice and data signals back to the wireline network, eliminating the need for a physical backhaul link, thus reducing operating costs. AirNet has 69 patents issued or pending. More information about AirNet may be obtained by calling 321.984.1990, or by visiting the AirNet Web site at www.airnetcom.com.

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 to their employees. Alcatel leverages its leading position in fixed and mobile broadband networks, applications and services to bring value to its customers in the framework of a broadband world. With sales of EURO 12.5 billion in 2003, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: www.alcatel.com.

AirNet Press & Investor Contacts

Stuart P. Dawley
Investor Relations Officer
Tel: +1 321-953-6780
sdawley@airnetcom.com
For more information: press@alcatel.com

Alcatel Press Contacts

Aurélie Boutin / HQ
Tel: + 33 (0)1 40 76 11 79
Aurelie.Boutin@alcatel.com

Régine Coqueran / HQ
Tel: + 33 (0)1 40 76 49 24
Regine.coqueran@alcatel.com

Christine de Monfreid/ MCG
Tel: + 33 (0)1 30 77 59 14
Christine.de_Monfreid@alcatel.fr

Alcatel Investor Relations

Laurent Geoffroy
Tel: +33 (0)1 40 76 50 27
Laurent.geoffroy@alcatel.com

Pascal Bantégnie
Tel: +33 (0)1 40 76 52 20
Pascal.bantegnie@alcatel.com

Peter Campbell
Tel: +33 (0)1 40 76 13 11
Peter.campbell@alcatel.com

Charlotte Laurent-Ottomane
Tel: +1 703 668 3571
Charlotte.laurent-ottomane@alcatel.com

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