KPN Selects Alcatel-Lucent's Bell Labs as Strategic Adviser for Ongoing Network and Business Transformation

MOBILE WORLD CONGRESS and BARCELONA, February 16, 2010 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that
leading European service provider KPN has selected Bell Labs to advise on a
network and business transformation program. This engagement, part of an
ongoing relationship with Alcatel-Lucent around transformational services,
will support KPN to meet the complex challenges of managing explosive growth
in traffic on its networks.

Bell Labs will work with KPN to further develop strategic
technology roadmaps that provide a systematic approach to network
transformation. It will also generate comprehensive business scenarios that
take into account dozens of business and technology parameters, and utilize
Bell Labs-developed decision-support methods and tools to enable KPN to run
business case and network optimization scenarios on a real-time and as needed
basis.

"Our customers, both consumers and business, are using fixed
and mobile networks and broadband services in completely new ways and we are
transforming our networks and services accordingly," said Joost Farwerck,
executive vice president of KPN Wholesale & Operations. "We consider Bell
Labs as a strategic adviser not only because of their ability to provide
state-of-the-art network advisory and modelling services, but because they
offer insights into the business implications and address issues that are top
of mind in the boardroom."

"The insights we are gaining from this partnership enable us
to craft an effective strategy in an increasingly dynamic operating
environment," Farwerck continued.

This is the latest in a series of transformation-related
engagements that KPN has with Bell Labs and Alcatel-Lucent. Other engagements
encompass activities as diverse as assessments of network reliability and
security, analysis of end-to-end readiness for new technology deployments,
second opinions on complex network transformations, recommendations on
network architecture evolution, migrations of operational processes and
systems, and analysis of potential new business models.

"KPN and a growing number of service providers around the
world are increasingly viewing the use of such close partnering on strategic
issues as an imperative that can enable them to navigate a dizzying array of
business and technology choices and timing options," said Adolfo Hernandez,
president of Alcatel-Lucent in the Europe, Middle East, and Africa region.
"What makes Bell Labs particularly effective is its ability to customize
methods, analytics and models to accommodate a specific operator's unique
operating conditions, hone in on key metrics such as total cost of ownership
across all scenarios, and perform rapid iterations that reveal the most
crucial parameters. Engagements like this are a key element of our
transformation strategy as we partner with our customers to help them
maintain profitability despite severe financial constraints and tremendous
increases in traffic on their networks."

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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

Peter Benedict, Tel: +33(0)1-40-76-50-84, peter.benedict at alcatel-lucent.com, Valérie La Gamba, Tel: +33-(0)1-40-76-12-28, valerie.la_gamba 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: + 1908-582-7998, bevilacqua at alcatel-lucent.com; Tony Lucido, Tel: + 1-908-582-5722, alucido at alcatel-lucent.coml; Don Sweeney, Tel: + 1-908-582-6153, dsweeney at alcatel-lucent.com