Alcatel-Lucent Successfully Makes First 4G LTE Calls With Telefonica in Latin America

MOBILE WORLD CONGRESS, BARCELONA, February 15, 2010 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced
that it has successfully made the first 4G calls in the framework of the Long
Term Evolution (LTE) lab tests Telefonica is conducting in Latin America.

With these tests, Telefonica is analysing - in a real
environment - the maturity and benefits of the LTE mobile broadband
technology. The first services were delivered in Telefonica's labs, using
Alcatel-Lucent's end-to-end LTE solution, including base stations,
transmission equipment, Evolved Packet Core (EPC), as well as professional
design & integration services - in combination with devices from LG
Electronics.

In a second phase when the field tests will start, the 700 MHz
and 2.6 GHz frequencies will be used to assess LTE's performance in terms of
coverage and capacity - offering a new user experience and supporting the
delivery of new mobile multimedia applications, such as high-definition video
streaming, mobile gaming, high-speed file transfers and video conferencing.

"LTE deployments bring a user experience and quality of
service far superior to the current 3G/3.5G networks," says Ken Wirth,
president of LTE/4G Solutions for Alcatel-Lucent. "In addition, they
accommodate lower costs of ownership thanks to LTE's advanced quality of
service (QoS) and technical features such as self-organising networks (SON)
that will be analyzed by Telefonica as well."

About Alcatel-Lucent and LTE

With 40 LTE customer trials secured to date, Alcatel-Lucent is
a worldwide leader in LTE. The company is actively engaged in the majority of
LTE projects being pursued by tier 1 operators around the globe. To help
operators realize their potential, Alcatel-Lucent is offering a unique,
pre-integrated, end-to-end LTE solution and a full set of associated
professional services. Alcatel-Lucent's network architecture is based on
Alcatel-Lucent unique converged radio access network
(www.alcatel-lucent.com/wps/portal/newsreleases/detail?LMSG_CABINET=Docs_and_Resource_Ctr&LMSG_CONTENT_FILE=News_Releases_2010/News_Article_001934.xml&lu_lang_code=en)
(RAN) strategy allowing scaling of W-CDMA networks and smooth evolution to
LTE. The company also founded the ng Connect Program
(www.ngconnect.org/about-us/index.htm), a global initiative
to drive the development of an open and diverse ecosystem of LTE device
manufacturers, content providers and application partners. Through the
ng Connect program and with Alcatel-Lucent's end-to-end LTE solution,
wireless broadband operators benefit from open innovation, pre-integrated
solutions, reduce time to market with LTE-enabled services, and the ability
to drive new and non-traditional business models.

For more information about Alcatel-Lucent's end-to-end LTE solution,
please visit: www.alcatel-lucent.com/lte

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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; Valerie La Gamba, Tel: +33(0)1-40-76-12-28, valerie.la_gamba at alcatel-lucent.com; Alcatel-Lucent Investor Relations: Remi 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