Alcatel-Lucent Acquires OpenPlug, a Cross-Platform Mobile Software Development Tool Provider

Acquisition Expands Company's Developer Tools to Make Applications Available on Diverse Operating Systems and in More Service Provider Stores

PARIS, September 1, 2010 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced
that it has acquired OpenPlug, a mobile software and applications development
tools vendor. Through this acquisition, Alcatel-Lucent deepens its role in
the applications space by delivering, as part of its integrated suite of
developer tools, a platform where application developers can write an
application once, which will then be translated to run on any of the five
major mobile operating systems. Terms of the deal were not disclosed.

Alcatel-Lucent can now extend OpenPlug's functionality to
service providers, enterprises and developers so they can create and deploy
applications — in virtually record time and without sacrificing the unique
customer experience — across multiple mobile devices and within service
provider app stores. As a result, applications that had previously only been
available on more sophisticated devices such as smartphones, can now be
enjoyed by consumers on any mobile device, which opens up opportunities in
emerging markets, where low cost mobile phone circulation is highest.

This is the second acquisition Alcatel-Lucent has made over
the past three months to expand and enhance the application ecosystem. In
June, the company acquired ProgrammableWeb, the technology industry's go-to
source of API-related content.

"While demand for mobile apps is peaking, so is the
fragmentation of mobile development platforms and tools," said Michael Cote,
analyst for Redmonk. "This makes it very expensive to target all devices and
can lead to putting all your eggs in one, often tightly controlled basket,
like Apple's, or doing a least-common denominator, mobile web app that can't
benefit from full native device access. A tool that can target all platforms
is hugely needed in this space, and OpenPlug should work well with the total
mobile app development portfolio Alcatel-Lucent is putting together."

Thanks to OpenPlug, service providers, enterprises and
developers do not have to be selective about which of the many mobile
platforms they will write applications for, thus limiting their potential for
service adoption and revenue potential. OpenPlug's mobile software turns
every device into a smart device. It allows developers to write applications
once and convert application code into native software that runs on any
leading mobile device operating system, including iPhone(R), Android(R),
Symbian(R), Windows Mobile(R), and Linux(R).

"Being able to provide more applications across multiple
devices helps service providers significantly broaden their app store content
to create more value for consumers," said Laura Merling, vice president of
Alcatel-Lucent's global developer strategy. "As service providers typically
offer multiple mobile devices to their subscriber base, the OpenPlug software
can help them get to market five times faster by allowing them to easily port
an application to all of their devices. And this isn't purely a mobile play
– the software can be extended to support application development for IPTV
set top boxes, game consoles, even the ng Connect LTE Connected Car."

"Deploying valuable web and mobile services requires
assembling many different pieces from many horizons," said Eric Baissus, CEO
of OpenPlug. "By combining OpenPlug's ELIPS Suite and ELIPS Studio
technologies with Alcatel-Lucent's platforms and API services, we enable
developers and service providers to gather all these pieces in a very
efficient and consistent way. This will dramatically facilitate the
deployment and the monetization of the new generation of applications that
the market is expecting."

The OpenPlug toolset will be incorporated into
Alcatel-Lucent's Developer Platform (
www2.alcatel-lucent.com/application_enablement/dpp.php) and Open API
Service (openapiservice.com/), thus broadening the functionality
available to service providers, enterprises and developers for the exposure
of network assets and the rapid introduction of new services across mobile
and Web domains.

The move advances Alcatel-Lucent's Application Enablement
(www2.alcatel-lucent.com/application_enablement/) strategy, which is
focused on combining the trusted and secure network capabilities of service
providers with the speed and innovation of the Web to provide a richer
end-user experience.

About OpenPlug

OpenPlug is a software provider specialized in mobile telephony and
commercializes under the ELIPS name a range of patented technologies that
facilitate the development of mobile phones, smartphones and the applications
that run on them. ELIPS Studio offers the first open software development
environment allowing Independent software vendors (ISVs) to create and deploy
simultaneously in record time their mobile applications on iPhone, Android,
Symbian, Windows Mobile, Linux and other proprietary systems. ELIPS Suite is
a white-label application suite that facilitates the design of mass-market
mobile phones and ships in millions of Tier-1 mobile phones worldwide.
OpenPlug products are used by leaders of the mobile industry such as Sony
Ericsson, Intel Corporation, Arima Communications, Foxconn, as well as
thousands of application developers. Founded in 2002, OpenPlug is based in
Sophia Antipolis - France. For more information, visit OpenPlug's corporate
website at www.openplug.com or the ELIPS Studio Developer Zone at
developer.openplug.com. (iPhone, Android, Symbian, Windows Mobile and
Linux are registered trademarks of their respective owners.)

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted
transformation partner of service providers, enterprises, strategic
industries such as defense, energy, healthcare, transportation, and
governments worldwide, providing solutions to deliver voice, data and video
communication services to end-users. A leader in fixed, mobile and converged
broadband networking, IP and optics technologies, applications and services,
Alcatel-Lucent leverages the unrivalled technical and scientific expertise of
Bell Labs, one of the largest innovation powerhouses in the communications
industry. With operations in more than 130 countries and the most experienced
global services organization in the industry, Alcatel-Lucent is a local
partner with a global reach. Alcatel-Lucent achieved revenues of Euro 15.2
billion in 2009 and is incorporated in France, with executive offices located
in Paris. For more information, visit Alcatel-Lucent on the Internet:
www.alcatel-lucent.com, read the latest posts on the Alcatel-Lucent
blog www.alcatel-lucent.com/blog and follow us on Twitter:
twitter.com/Alcatel_Lucent.

Alcatel-Lucent Press Contacts: Peter Benedict, Tel: +33(0)1-40-76-50-84, peter.benedict at alcatel-lucent.com ; Mark Hudson, Tel: +1-405-844-68-27, mfhudson at alcatel-lucent.com . Alcatel-Lucent Investor Relations: Frank Maccary, Tel: +33(0)1-40-76-12-11, frank.maccary at alcatel-lucent.com ; Don Sweeney, Tel: +1-908-582-6153, dsweeney at alcatel-lucent.com ; Tom Bevilacqua, Tel: +1-908-582-7998, bevilacqua at alcatel-lucent.com .