Alcatel-Lucent and China Mobile to Co-Develop Future of Mobile Networks

Agreement Extends Current lightRadio(TM) Collaboration to Cover Related Mobile Networking Technologies

PARIS and BEIJING, April 20, 2011 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) and China Mobile
today announced a wide-ranging joint memorandum of understanding to pursue
pioneering developments in next generation mobile communications including
further co-development around Alcatel-Lucent's powerful lightRadio
technology. The partnership agreement was signed by Romano Valussi, President
of Alcatel-Lucent in China, and Bill Huang, president of China Mobile
Research Institute in a signing ceremony in Beijing today.

China Mobile is the biggest mobile operator by subscribers in
the world. Alcatel-Lucent is a leader in radio access, IP, and optical
technologies - all critical elements in mobile networking - thanks to its
flagship Bell Labs research arm which invented and continues to invent many
of the fundamental networking technologies of today and tomorrow including
the much heralded lightRadio cube.

This research collaboration will further extend the close
relationship between the two companies, establishing the framework to jointly
explore:

- the evolution of mobile network architectures leveraging and
integrating China Mobile's Cloud-RAN and Alcatel-Lucent's lightRadio and
advanced antennas technology;

- explore the evolution of core network structure on the basis
of network virtualization; and

- develop technologies and approaches for alternative energy
use to achieve green ICT

The MOU is mutually initiated and endorsed by Wang Jianzhou,
Chairman of China Mobile and Ben Verwaayen, Alcatel-Lucent CEO.

Ben Verwaayen, CEO of Alcatel-Lucent, said: "This vital
collaborative agreement will bring together two industry leaders, using joint
research, to bring new breakthroughs to market at what we call 'the speed of
ideas'."

Wang Jianzhou, Chairman of China Mobile, said: "Co-development
with Alcatel-Lucent Bell Labs will benefit evolving our network technology to
support the next generation of mobile-based applications, experiences,
economies, and social networks."

Editor's note: contact press@alcatel-lucent.com for photos of event

About Alcatel-Lucent (Euronext Paris and NYSE : ALU)

The long-trusted partner of service providers, enterprises,
strategic industries and governments around the world, Alcatel-Lucent is a
leader in mobile, fixed, IP and optics technologies, and a pioneer in
applications and services. Alcatel-Lucent includes Bell Labs, one of the
world's foremost centres of research and innovation in communications
technology.

With operations in more than 130 countries and one of the most
experienced global services organizations in the industry, Alcatel-Lucent is
a local partner with global reach.

The Company achieved revenues of Euro 16 billion in 2010 and
is incorporated in France and headquartered in Paris.

For more information, visit Alcatel-Lucent on:
www.alcatel-lucent.com, read the latest posts on the Alcatel-Lucent
blog www.alcatel-lucent.com/blog and follow the Company 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; Scott Sykes, Tel: +852-2599-2536, Scott.sykes 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, don.sweeney at alcatel-lucent.com, Tom Bevilacqua, Tel: +1-908-582-7998, thomas.bevilacqua at alcatel-lucent.com