Alcatel-Lucent Rolls Out API Bundles to Radically Transform the Application Development Business Model

New Business Modeling and Tracking Tools Take Guess Work Out of Application Success

AUSTIN, Texas, March 12, 2010 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced
the industry's first packaged API (Application Programming Interfaces)
bundles, and an associated revenue sharing model that radically transforms
application development by eliminating upfront costs for developers and
opening new revenue opportunities for service providers. The announcement is
part of a larger push by Alcatel-Lucent to give developers the ability to use
the network as a development platform in the same way they currently build
applications for mobile devices and the Web.

The company also announced a powerful new business and
application modeling tool that allows developers to get the most out of their
applications. This new functionality helps developers and service providers
improve the potential for the success of services they are introducing and
helps them better manage the overall business of their applications.

Alcatel-Lucent will showcase these and other tools, which are
part of its developer platform and program (and core elements of its
Application Enablement vision) at the South by Southwest Interactive
Conference, (March 11 - 16, 2010 Austin, TX) in the "Eleven API Lounge" of
the Hilton Hotel, directly across from the Austin Convention Center.

New Bundled APIs

A bundled API is a unique offering from Alcatel-Lucent that
blends service provider and third party application capabilities to support
the easy creation of new applications. These API bundles enable a new revenue
share model intended to transform service provider networks into an
application development platform by unlocking network resources and
functionality - similar to what smartphones and apps stores did for the
device world.

The company's first vertical API bundles include three social
bundles supporting the creation of new mashups in the rapidly growing social
gaming, advertising and virtual goods markets. Collectively, the APIs
included are SMS, advertising, location, virtual goods, credit card and
billing. The initial delivery of these API bundles targets the 14+ million
developers worldwide and the two fastest growing and increasingly profitable
applications markets today: mobile advertising and virtual goods. Recent
industry research suggests mobile advertising will exceed $3 billion by 2013
and that today's virtual goods market is between $4-6 billion globally.
Alcatel-Lucent is providing developers access to beta versions of the social
API bundles within a virtual sandbox for non-commercial use in a laboratory
type environment. Developers can access the bundles via Alcatel-Lucent's Open
API Service(developer.openapiservice.com/).

"We welcome the pioneering social API initiative of
Alcatel-Lucent to provide more upside for developers to reach better
monetization through added targeting value, such as location," said Herald
Neidhardt, CMO and co-founder of Smaato Inc, a mobile advertising company.

The new revenue share model allows developers to access the
API bundles without the burdensome upfront API fees that, until now, have
traditionally been a major pain point, while earning a portion of the revenue
from applications leveraging the APIs. Service providers, third party API
contributors and Alcatel-Lucent can also share a percentage of the
applications revenue for making unique APIs available in a way that
safeguards the security and privacy of their subscribers' data. By allowing
service providers to make money on the applications that run "over the top"
of their network, the business model addresses a sore point of increased
costs associated with today's data explosion.

"The business model benefits everyone across the value chain.
Whereas service providers did not share in an application's revenue before,
they now gain new sources of revenue from ad network or virtual goods
applications. They can invest that income back into their network, which in
turn supports new services innovation," said Johnson Agogbua, head of
Application Enablement solutions for Alcatel-Lucent.

New Dashboard Functionality

To support the bundled API approach, Alcatel-Lucent has also
expanded its Dashboard tool to provide developers with a more personalized
and detailed view of their applications and end users including: number of
downloads, type of transactions, application performance, and revenue
generation from campaigns and apps stores. This data is compiled across major
apps stores — GetJar, Android and iTunes - to provide a comprehensive
picture of how a developer's application rates with consumers and stacks up
against other industry applications. By making these additional tools
available on its Dashboard, Alcatel-Lucent will expand its developer
community reach to more than 20,000 developers.

Enthusiastically received by the developer community upon its
introduction at the Mobile World Congress tradeshow last month, the Dashboard
and API bundling model(
www.alcatel-lucent.com/wps/portal/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4×3tXDUL8h2VAQAURh_Yw!!?LMSG_CABINET=Docs_and_Resource_Ctr&LMSG_CONTENT_FILE=News_Releases_2010/News_Article_001955.xml
) are being expanded with contributions from leading third party vendors:
APIgee, Billing Revolution, Motally, SMaato and Zhing.

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

About Alcatel-Lucent's Application Enablement strategy:

Application enablement is an industry vision and network approach that
combines the trusted capabilities of network operators and the speed and
innovation of the web to provide end users and enterprises what they demand:
a richer and more trusted web experience and beyond. Through a strategic
focus on application enablement, Alcatel-Lucent is helping its customers
create new value by exposing their network capabilities in a managed and
controlled way, facilitating new business models and improving return on
investment. For more information, go to
www.alcatel-lucent.com/application_enablement/

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, Tel: +33(0)1-40-76-50-84, peter.benedict at alcatel-lucent.com; Mark Hudson, Tel: +1-405-844-68-27, mfhudson 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: +1-908-582-7998, bevilacqua at alcatel-lucent.com; Tony Lucido, Tel: +1-908-582-5722, alucido at alcatel-lucent.com; Don Sweeney, Tel: +1-908-582-6153, dsweeney at alcatel-lucent.com