Etisalat First to Deploy 'Femtocells' in the UAE

DUBAI, October 19, 2010 - Etisalat, the Middle East's leading telecommunications service
provider today announced the deployment of the first femtocell live project
in the UAE, provided by Alcatel-Lucent (Euronext Paris and NYSE: ALU).
Etisalat's customers will benefit from an enhanced quality of mobile
broadband connectivity in remote areas of the UAE, and in high traffic places
that require higher mobile broadband bandwidth. Etisalat is targeting the
commercial launch of the technology within the UAE following the initial
successful testing.

"Etisalat has always been an innovator in bringing
technologies that better serve its customers. This technology has the
potential to support increased growth in the usage and consumption of data
services and can play a crucial role in satisfying the explosive growth of
mobile broadband usage in the UAE," said Khalifa Al Shamsi, senior vice
president of Marketing at Etisalat. "Etisalat customers will not only benefit
from improved coverage, but will also enjoy increased data capacity and
uninterrupted, high-quality mobile connectivity."

Amr El Leithy, president of Alcatel-Lucent's business in the
Middle East and Africa said, "This decision reinforces Alcatel-Lucent's
leading position in the small cell field and confirms our ability to help
major operators to deal with one of the biggest trends in wireless
communications, extending indoor mobile coverage to in-building
environments."

Etisalat today offers mobile broadband services and allows
customers to enjoy the maximum expected performance with the region's fastest
speeds in the UAE to be upgraded to 42.2Mbs on the HSPA+ (3.75G) network; and
the widest 3G network covering 99% of the country's populated area. This
provides customers with a superior wireless data experience when they access
their mobile social network, stream videos or share content. To derive
maximum benefit of Etisalat's services based on its advanced technologies,
including HSPA+, customers can avail of technology-compatible devices such as
Etisalat's HSPA+ routers, 3G USB modems and smart device bundles.

About the Alcatel-Lucent Small Cell approach

Through a series of 12 new small cell
contract wins in only three months, Alcatel-Lucent is clearly establishing
itself as the leading end-to-end Femto/small cell vendor, currently holding
more than 20 trials and 14 commercial deployment agreements.

The Alcatel-Lucent Small Cell portfolio
currently consists of the 9361 Home Cell and the 9362 Enterprise Cell.
Alcatel-Lucent's Small Cell approach benefits from the company's unique
expertise in bringing together wireless and IP technologies into a single,
coherent network. It is an integral part of Alcatel-Lucent's Application
Enablement vision - building on its High Leverage Network(TM) architecture to
deliver wireless IP services. Alcatel-Lucent is leading in small cells with
an unrivaled end-to-end portfolio that includes innovation from Bell Labs
such as support systems for customer care and self-organizing networks (SON).

Alcatel-Lucent Bell Labs' SON innovations significantly reduce
operational expenses while improving network performance. Not only does SON
empower Alcatel-Lucent's Small Cell portfolio to automatically configure at
power up; it also enables the small cells to periodically monitor, update and
optimize their neighbor relation lists and handover parameters - thus
reducing handover failures by up to 80%. Using SON technology,
Alcatel-Lucent's Small Cell portfolio also has the capability to continuously
adjust transmit power to the surrounding environment - to deliver the best
possible coverage.

More information:

www.alcatel-lucent.com/wireless/femto_small_cells.html

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 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.

Mohammad Okour, Tel: +971(0)50-881-5000, m.okour at asdaa.com; Peter Benedict, Tel: +33(0)1-40-76-50-84, peter.benedict at alcatel-lucent.com; Valérie La Gamba, Tel: +33(0)1-30-77-35-91, valerie.la_gamba 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