Alcatel-Lucent Increases IP Service Provider Router Revenue and Market Share for Third Consecutive Year

26 of the top 30 telecommunications service providers worldwide now using Alcatel-Lucent's IP/MPLS Service Router portfolio

PARIS, February 23, 2010 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has
once again outperformed its rivals as the only major IP router vendor to
report revenue growth and gain worldwide market share, according to full year
2009 data from the Dell'Oro Group. Rounding out the year with its best
quarter of revenue in the history of its IP/MPLS service router portfolio,
Alcatel-Lucent gained almost five percentage points of market share in 2009,
solidifying its number two position in the "edge" segment with over 20
percent market share. Alcatel-Lucent was also the only one of the three
leading router vendors to gain share in the overall service provider router
market, with an increase of almost four percentage points in 2009.

In an excerpt from Dell'Oro Group's Routers Report 4Q09, the firm stated:
"For the full year 2009, Alcatel-Lucent achieved a significant milestone by
moving up to second place in the vendor rankings of the service provider Edge
Router market. This was the first time in ten years that a vendor other than
Juniper occupied the number-two position. Alcatel-Lucent's share increased
five percentage points in 2009 to 20%…Alcatel-Lucent's ongoing success
stems from a broad product line, a large customer base, and extensive global
presence - all of which have helped the vendor build a consistent revenue
stream and win new business."

"Dell'Oro's report for 2009 reinforces the market success and momentum
that we started back in 2004 and that continues to this day," said Basil
Alwan, president of Alcatel-Lucent's IP Activities and head of carrier
portfolio strategy. "The service provider edge is where operators define and
deliver services for residential, mobile and business customers, making it a
key focus for capital investment, despite the tough economic environment
throughout 2009. This is the market opportunity that Alcatel-Lucent's service
router portfolio is ideally suited to address, and the reason we've taken
another five points of market share in the last year."

Alcatel-Lucent's 3rd generation IP/MPLS service routers allow operators
to offer differentiated, revenue generating services including residential
IPTV, carrier Ethernet services for business customers and LTE-ready mobile
backhaul and packet core. The mobile backhaul segment represented one of the
strongest growth areas in 2009 as operators upgraded their networks to cope
with the rapid increase in data traffic from smartphones and other 3G
devices. Alcatel-Lucent is now delivering LTE-ready mobile backhaul solutions
to more than 50 wireline, wireless and MSO customers around the world.

Alcatel-Lucent expanded its IP technology and product leadership in 2009,
with several new innovations, including: 100 Gigabit Ethernet with full edge
services like IPTV; a converged backbone transformation solution based on
IP/Optical integration; enhancements to its market-leading LTE-ready mobile
backhaul portfolio; and a unique approach to the wireless Evolved Packet Core
(EPC), which is in more than 15 customer trials or commercial deployments
worldwide and is a central element of the company's end-to-end LTE solution.

Alcatel-Lucent announced IP/MPLS service router contracts with 29 new
customers during 2009, including new wins with Tier 1 carriers and cable MSOs
in all regions. The Alcatel-Lucent Service Router portfolio is now deployed
at 26 of the top 30 carriers worldwide and more than 300 service provider
networks in over 100 countries have been deployed since 2004. To read the
full Dell'Oro report go to: www.delloro.com/services_routers.htm.

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 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.

Alcatel-Lucent Press Contacts: Peter Benedict, +33-(0)1-40-76-50-84, Peter.benedict at alcatel-lucent.com, or Sarah Miller, +1-613-784-4563, sarah.miller at alcatel-lucent.com, or Alcatel-Lucent Investor Relations: Remi Thomas, +33-(0)1-40-76-50-61, remi.thomas at alcatel-lucent.com, or Don Sweeney, +1-908-582-6153, dsweeney at alcatel-lucent.com, or Tom Bevilacqua, +1-908-582-7998, bevilacqua at alcatel-lucent.com, or Tony Lucido, +1-908-582 5722, alucido at alcatel-lucent.com