Alcatel-Lucent - Full Exercise of the Over-Allotment Option Increasing Issue From Approximately EUR870 Million to EUR1 Billion

PARIS -

- Issuance by Alcatel-Lucent of OCEANEs

The Joint Lead-Managers & Joint Bookrunners of the OCEANEs offering have informed Alcatel-Lucent (Euronext Paris and NYSE: ALU) that they exercised today in full the over-allotment option.

As a result, the total issue size is increased to EUR999,999,999.29 corresponding to 309,597,523 OCEANEs.

The expected date of issue and settlement and delivery for the Bonds is September 10, 2009.

This press release does not constitute an offering to subscribe, and the offering of the Bonds is not a public offering in any jurisdiction except in France.

DISCLAIMER

This press release must not be published, released or distributed, directly or indirectly, in Canada, Japan or Australia.

This press release and the information contained herein do not constitute an offer to sell or subscribe, nor the solicitation of an order to purchase or subscribe, securities in the United States or in any other country. In particular, securities may not be offered or sold in France absent a prospectus approved by the AMF. The release, publication or distribution of this press release in certain jurisdictions may be restricted by laws or regulations. Therefore, persons in such jurisdictions into which this press release is released, published or distributed must inform themselves about and comply with such laws or regulations.

The offer and sale of the Bonds in France were first carried out in a private placement in accordance with article L.411-2-II of the French Monetary and Financial Code. The offer is made to the public in France following the granting of the “visa” by the AMF on the prospectus from September 3, 2009 to September 7, 2009.

With respect to the member States of the European Economic Area, other than France, which have implemented the Directive EC/2003/71 called the “Prospectus Directive” (each, a “relevant member State”), no action has been undertaken or will be undertaken to make an offer to the public of the Bonds requiring a publication of a prospectus in any relevant member State. As a result, the Bonds may only be offered in relevant member States:

(I) to legal entities which are authorised or regulated to operate in the financial markets or, if not so authorised or regulated, whose corporate purpose is solely to place securities;

(II) to any legal entity which has two or more of the following criteria: (1) an average of at least 250 employees during the last financial year; (2) a total balance sheet of more than EUR 43 million; and (3) an annual net turnover of more than EUR 50 million, as per its last annual or consolidated accounts;

(III) in any other circumstances, not requiring the issuer to publish a prospectus as provided under article 3(2) of the prospectus directive.

The securities referred to in this press release have not been and will not be registered under the U.S. Securities Act of 1933, as amended (”US Securities Act”), and may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities Act. Alcatel-Lucent does not intend to register any portion of the planned offering in the United States or to conduct a public offering of securities in the United States.

This press release is not an invitation or an inducement to engage in investment activity for the purpose of Section 21 of the Financial Services and Markets Act 2000, as amended (”FSMA”). This press release is directed only at (i) persons outside the United Kingdom; or (ii) persons in the United Kingdom that are “qualified investors” within the meaning of Section 86(7) of FSMA that are also (a) persons authorised under FSMA or otherwise having professional experience in matters relating to investments and qualifying as investment professionals under article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Financial Promotion Order”); or (b) high net worth companies, unincorporated associations and other persons to whom article 49(2) (a) to (d) of the Financial Promotion Order applies; or (c) any other persons to whom this press release for the purposes of Section 21 of FSMA can otherwise lawfully be made available (all such persons together being referred to as “Relevant Persons”). Any person in the United Kingdom that is not a Relevant Person should not act or rely on this press release. The securities referred to in this press release or any investment or controlled activity to which such securities relate are only available to, and will be engaged in only with, Relevant Persons.

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted partner of service providers, enterprises 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 16.98 billion in 2008 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: www.alcatel-lucent.com

PARIS, September 3 /PRNewswire/ –

Source: Alcatel-Lucent

Alcatel-Lucent Press Contacts: Régine Coqueran-Gelin, 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; Alcatel-Lucent Investor Relations: Rémi Thomas, Tel: + 33(0)1-40-76-50-61, remi.thomas at alcatel-lucent.com; Tom Bevilacqua, Tel: + 1908-582-7998, bevilacqua at alcatel-lucent.com; Tony Lucido, Tel: + 33(0)1-40-76-49-80, alucido at alcatel-lucent.com; Don Sweeney, Tel: + 1-908-582-6153, dsweeney at alcatel-lucent.com