Alcatel-Lucent Delivering on its 3-Year Transformation Journey

Further Strong Market & Company Improvement Expected in 2011

PARIS, February 10, 2011 -

    - KEY NUMBERS FOR THE FOURTH QUARTER 2010
    - KEY NUMBERS FOR THE YEAR 2010
    - EXECUTIVE COMMENTARY

Ben Verwaayen, CEO, commented:

"I am energized by the progress we have made over the past two
years. We have overhauled our product portfolio, introduced our High Leverage
Network and Application Enablement strategy, increased our customer relevance
and improved our operational excellence, highlighted by the outstanding
revenue growth and strong margin performance in the fourth quarter."

He added:

"As we enter into 2011, I am more confident than ever in our
ability to transform into a normal company. We have market momentum, strong
customer relationships, unique strength in the all-IP network transformation
& next generation broadband access. More importantly, we have the passion and
commitment of 78 000 colleagues around the world to provide our customers
with products and solutions to address their business challenges. I am proud
of their accomplishments and want to thank them for their efforts throughout
this past year.

Looking to 2011, we feel confident to grow faster than our
addressable market and aim at a significant increase in profitability with an
adjusted operating margin above 5% of 2011 sales."

To see full release please visit: www.alcatel-lucent.com/4q2010

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 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 16
billion in 2010 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.

SAFE HARBOR FOR FORWARD LOOKING STATEMENTS

Except for historical information, all other information in this
presentation consists of forward-looking statements within the meaning of the
US Private Securities Litigation Reform Act of 1995, as amended. These
forward looking statements include statements regarding the future financial
and operating results of Alcatel-Lucent such as, for example, an adjusted
operating margin above 5% for 2011 and continued market share gains. Words
such as "expects," "anticipates," "targets," "projects," "intends," "plans,"
"believes," "estimates," "aim," "goal," "outlook," momentum," "continue,"
"reach,", "confident in," variations of such words and similar expressions
are intended to identify such forward-looking statements which are not
statements of historical facts. These forward-looking statements are not
guarantees of future performance and involve certain risks, uncertainties and
assumptions that are difficult to assess. Therefore, actual outcomes and
results may differ materially from what is expressed or forecasted in such
forward-looking statements. These risks and uncertainties are based upon a
number of important factors including, among others: our ability to operate
effectively in a highly competitive industry with many participants and to
correctly identify and invest in the technologies that become commercially
accepted, demand for our products, and acceptance of the technologies we seek
to pioneer; difficulties and delays in our ability to execute on our
strategic plan to adjust our product portfolio by boosting investment in
certain segments and reducing spending in others, co-source certain business
processes, focus on cash, and reduce costs; fluctuations in the
telecommunications market; exposure to the pricing pressures in the regions
in which we sell; the pricing, cost and other risks inherent in long-term
sales agreements; exposure to the credit risk of customers; reliance on a
limited number of suppliers for the components =we need or a tight market for
commodity components; the social, political and economic risks of our global
operations; the costs and risks associated with pension and postretirement
benefit obligations; changes to existing regulations or technical standards;
existing and future litigation; difficulties and costs in protecting
intellectual property rights and exposure to infringement claims by others;
compliance with environmental, health and safety laws; the economic situation
in general (including exchange rate fluctuations) and uncertainties in
Alcatel-Lucent's customers' businesses in particular; control of costs and
expenses; conditions and growth rates in the telecommunications industry; and
the impact of each of these factors on sales and income. For a more complete
list and description of such risks and uncertainties, refer to
Alcatel-Lucent's Annual Report on Form 20-F for the year ended December 31,
2009, as well as other filings by Alcatel-Lucent with the US Securities and
Exchange Commission. Except as required under the US federal securities laws
and the rules and regulations of the US Securities and Exchange Commission,
Alcatel-Lucent disclaims any intention or obligation to update any
forward-looking statements after the distribution of this presentation,
whether as a result of new information, future events, developments, changes
in assumptions or otherwise.

Alcatel-Lucent Press Contacts: Regine Coqueran, Tel: +33(0)1-40-76-49-24, regine.coqueran at alcatel-lucent.com; Peter Benedict, Tel: +33(0)1-40-76-50-84, pbenedict at alcatel-lucent.com; Alix Cavallari, Tel: +33(0)1-40-76-16-58, Alix.cavallari at alcatel-lucent.com; Alcatel-Lucent Investor Relations, Frank Maccary, Tel: +33(0)1-40-76-12-11,, frank.maccary at alcatel-lucent.com; Tom Bevilacqua, Tel: +1-908-582-79-98, bevilacqua at alcatel-lucent.com; Constance de Cambiaire, Tel: +33(0)1-40-76-10-13, Constance.De_Cambiaire at alcatel-lucent.com; Don Sweeney Tel: +1-908-582-6153, dsweeney at alcatel-lucent.com