HONG KONG, Nov. 28 /Xinhua-PRNewswire-FirstCall/ -- Alcatel-Lucent (Euronext Paris and NYSE: ALU) and Hong Kong Broadband Network Limited (HKBN), a wholly-owned subsidiary of City Telecom (HK) Limited (HKEx: 1137 and Nasdaq: CTEL) announced today the deployment of the first Gigabit Passive Optical Network (GPON) in Hong Kong. The collaboration contract also includes network maintenance. Alcatel-Lucent's Fiber-to-the-Home (FTTH) solution will enable HKBN to deliver advanced triple play services to its subscribers and enlarge its FTTH network coverage in Hong Kong. The new network is expected to be in service in January 2008. The demand for advanced multimedia and data services in Hong Kong is expected to increase substantially in the coming years, driven by services such as high definition TV (HDTV) and enhanced multimedia applications. According to the FTTH Councils of Asia-Pacific, Europe and North America, Hong Kong is the world leader in percentage of homes wired with broadband communications over direct fiber optic connections, followed by South Korea and Japan. HKBN, the first provider in Hong Kong to launch fiber-to-the-home 100Mbps and 1Gbps services in 2005, plans to increase its coverage from 1.4 million to 2 million home passed within three years. "After an intensive trial of Alcatel-Lucent's GPON solution, we are pleased with the maturity and performance of the technology," said Paul Cheung, Chief Executive Officer of HKBN. "By leveraging Alcatel-Lucent's market- leading expertise in FTTH, we will continue to deploy new and advanced service offerings, providing seamless and premium connectivity services catering to our customers' requirements." "We are proud to partner with HKBN delivering the first GPON network in Hong Kong," said Sean Dolan, President of Alcatel-Lucent's activities for North East Asia. "We are committed to the local market, providing our best of breed solutions and global expertise, helping Hong Kong to maintain its technology leadership - in this case advance broadband deployment." Under the terms of the agreement, Alcatel-Lucent will deploy the 7342 Intelligent Services Access Manager Fiber-to-the-Home (ISAM FTTU) solution. The system is designed specifically for packet-based voice convergence and triple play services and delivers maximum bandwidth and QoS over a fiber access network. For full press release, please refer to our home page http://www.ctigroup.com.hk/en/ . For enquiries, please contact: Corporate Communications Ms Jessie Cheng Tel: +852-3145-4118 Email: DATASOURCE: City Telecom (HK) Limited CONTACT: Ms Jessie Cheng of City Telecom (H.K.) Limited, +852-3145-4118, or Web site: http://www.ctigroup.com.hk/en

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