Alcatel-Lucent Raises Bar in Optical Transport With First Commercially Available Single Carrier 100G Using 'Next-Generation Coherent' Technology

Offering Highest Performance and Longest Transmission Reach - Critical Element in High Leverage Network(TM) Architecture

PARIS, June 9, 2010 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today continued
its innovation in optical networking with the announcement of the first
commercially available solution to carry a single carrier 100 gigabit per
second (100G) on a wavelength through the innovative use of emerging
'Next-Generation Coherent' technology. With this announcement Alcatel-Lucent
is moving the market into the commercial deployment era of 100G next
generation coherent technology.

Designed to address the booming bandwidth demands driven by
video streaming, web applications, file sharing and high definition movies,
next-generation coherent technology is the next step in 100G optical
networking, offering unprecedented resilience to optical transmission
impairments across the network. This enables 100G rates on each wavelength,
supporting for example the transfer of over 100,000 MP3 files in 60 seconds
or over 15,000 HDTV channels concurrently streamed live.

Single carrier next-generation coherent technology also offers
significantly higher integration and longer transmission reach with
significantly lower network complexity, operational costs and power
consumption. Next-generation coherent technology also delivers unprecedented
compatibility between 100G and lower speed transport infrastructures (such as
10G and 40G).

All of these features make this industry-first solution from
Alcatel-Lucent the ideal solution for carriers who want investment-protection
by scaling their backbone and metro networks from 10G to 40G to 100G without
performance degradation, or an economically viable platform for new optical
networking deployments.

"Driven by increasing network bandwidth demands, service
providers are looking for future-proof backbone infrastructures that can
effectively scale in capacity and reach without requiring expensive network
overbuilds," said Dana Cooperson, Vice-President Network Infrastructure at
Ovum. "Infrastructure that can adapt easily to include coherent 100G (and
40G) transmission and scale to multi-terabits, such as Alcatel-Lucent has
announced as ready for deployment, is essential to enabling tomorrow's
high-bandwidth applications. And as one of only a few leaders in both IP/MPLS
and optical infrastructure, Alcatel-Lucent is in a good position to advance
the close integration of the IP and optical layers to further optimize
networks."

Currently available on the 1830 Photonic Service Switch (PSS),
this technology, which leverages innovations from the Bell Labs,
Alcatel-Lucent's research arm and in-house developments in optical
networking, is also being deployed on all of Alcatel-Lucent's dense
wavelength division multiplexing (DWDM) platforms. This 100G next-generation
coherent offering is a key element of Alcatel-Lucent's High Leverage
Network(TM) (HLN) architecture to help service providers offer a
differentiated service experience to end-users, while minimizing their total
cost of ownership.

Underscoring today's launch, the 100G-capable Alcatel-Lucent
1830 PSS has been selected by SOFTBANK TELECOM Corp. to upgrade its backbone
network and is being showcased at the ongoing Interop Tokyo 2010 exhibition,
where Alcatel-Lucent is partnering with SOFTBANK TELECOM to provide the
network infrastructure carrying live data traffic associated with the event.
Additionally, Alcatel-Lucent's next-generation coherent technology has
already been successfully tested with Tier-1 customers worldwide, including
Telefonica.

"With the availability today of our 100G DWDM solution,
Alcatel-Lucent further evolves and differentiates its optical networking
proposition to deliver new value and revenue protection to its customers,"
said James Watt, head of Alcatel-Lucent's Optics activities. "Our in-house
innovation capabilities and strategy execution are a new proof of our
commitment to partner with service providers for the development of new
sustainable business models. This is where bandwidth growth is achieved while
minimizing their total cost of ownership, including energy and space
savings."

For more information visit: www.alcatel-lucent.com/100g

Web Press Conference details

The web conference will take place June 9, 2009 at 7AM PST/
10AM EST / 4PM CET and will be hosted by Sam Bucci, VP Terrestrial Portfolio
Management, Optics and Alberto Valsecchi, VP Marketing, Optics.

To access the session please use the following information:

Dial-in numbers:

N. America toll free: 866-578-5771

International toll: 617-213-8055

Participant passcode: 47364386

WEBCAST URL:

phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=94709&eventID=3121713

Participants will have the opportunity to ask questions at the
end of the presentation.

Advance questions or follow-up questions can be sent to
sarah.miller@alcatel-lucent.com and Wendy.Zajack@alcatel-lucent.com or
referencing the web press conference.

(Due to the length of the above URL, it may be necessary to copy and
paste this hyperlink into your Internet browser's URL address field. Remove
the space if one exists.)

About Alcatel-Lucent's High Leverage Network(TM)
(www2.alcatel-lucent.com/hln)

The Alcatel-Lucent High Leverage Network(TM) (HLN)
architecture addresses the dual challenges of simultaneously scaling and
managing network capacity to meet increasing bandwidth demand while
delivering differentiated, revenue generating services. It achieves this by
delivering scalable bandwidth at the lowest cost per bit and by embedding
intelligence in the network to enable dynamic service creation and delivery.
The foundation for the Alcatel-Lucent Application Enablement
(www2.alcatel-lucent.com/application_enablement) vision, the HLN
architecture collapses multiple complex costly overlay networks into a
simpler, fully optimized network that leverages technical innovations and
embraces existing environments.

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted
transformation partner of service providers, enterprises, strategic
industries such as defence, 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; Sarah Miller, Tel: +1-613-784-45-63, sarah.miller 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; Tony Lucido, Tel: +1-908-582-5722, alucido at alcatel-lucent.com