Alcatel-Lucent: The Disappearing Mobile Masts and Towers

lightRadio(TM) - Solving Network Gridlock and Universal High-Speed Coverage

PARIS and LONDON, February 7, 2011 - The looming global gridlock in mobile communications promises
to be averted following the launch today of pioneering technology which will
remove the bottlenecks constraining mobile networks and help deliver
universal broadband coverage.

Alcatel-Lucent (Euronext Paris and NYSE: ALU), the leading
network technology group, has joined forces with industry partners to develop
lightRadio(TM), a new system that signals the end of the mobile industry's
reliance on masts and base stations around the world.

Ben Verwaayen, Chief Executive Officer of Alcatel-Lucent,
said: "Today's and tomorrow's demands for coverage and capacity require a
breakthrough in mobile communications."

He added: "lightRadio will signal the end of the basestation
and the cell tower as we know it today."

Governments and regulatory bodies are expected to welcome the
technical development, which will help meet targets for universal broadband
access by laying the foundation to address the so-called "digital divide."

Other major benefits from lightRadio(TM) include:

    - Shrinking the carbon footprint of mobile networks by over 50%

    - Reducing the Total-Cost-of-Ownership of mobile operators by up to 50%

    - Improving end user services by significantly increasing bandwidth per
      user thanks to the deployment of small antennas everywhere

Wim Sweldens, President of Alcatel-Lucent's Wireless Division
said: "lightRadio will help mobile operators evolve their networks to address
the mobile broadband deluge."

lightRadio represents a new approach where the base station,
typically located at the base of each cell site tower, is broken into its
components elements and then distributed into both the antenna and throughout
a cloud-like network.

lightRadio also shrinks today's clutter of antennas serving
2G, 3G, and LTE systems into a single powerful, Bell Labs-pioneered antenna
that can be mounted on poles, sides of buildings or anywhere else there is
power and a broadband connection.

The innovation coincides with growing demand for
third-and-fourth generation mobile networks and devices, involving the mass
adoption of wireless television services and other forms of broadband
content. The total addressable market for the radio technology necessary to
serve such networks and devices is expected to exceed EUR100bn1 over the next
seven years.

Alcatel-Lucent announced the lightRadio(TM) technical
specifications and launch timetable at an industry event in London today.
Visit www.alcatel-lucent.com/lightradio for product press release and
link to event replay (available at 2:30 GMT).

[1] This is the total addressable market for multi-technology radio
solutions that consist of radio access base stations that simultaneously
support 2G, 3G, and LTE, and multiple frequencies in the same platform

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, 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 . Wendy Zajack, Tel: +1-703-943-6298, wendy.zajack 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, thomas.bevilacqua at alcatel-lucent.com .