Manx Telecom Taps Alcatel-Lucent's IMS Solution to Create a Single Powerful Unified Multimedia Network

New Network Will Deliver Consumers and Businesses a Rich Range of Voice, Video, and Broadband Data Services

PARIS, March 31, 2011 - Alcatel-Lucent (Euronext Paris et NYSE : ALU) today announced
that Manx Telecom Ltd., on the Isle of Man in the British Isles, is deploying
its End-to-End IP Multimedia Subsystem (IMS) to address today's end user
demand for seamless access to voice, data and multimedia services. The
solution will create one unified network by which Manx Telecom can deliver
rich broadband services to consumers and enterprises anywhere, anytime and
over any device.

Alcatel-Lucent's industry leading IMS solution allows Manx
Telecom to modernize its existing fixed network with an IP-based architecture
to provide subscribers with VoIP over narrow or broadband access, while also
simplifying operations and lowering costs. By overlaying broadband, Manx can
deliver enhanced voice services to subscribers across devices and networks
and give consumers and business users the ability to personalize services.

"With Alcatel-Lucent's IMS solution, we now have a single,
scalable platform that can offer multiple customer services with integrated
management to deliver the enhanced services being demanded today and prepare
for the services that people will seek tomorrow," said Mike Loundes, CTO of
Manx Telecom. "This is a key milestone in the deployment of our network which
is one of the biggest technology investments the Isle of Man has ever seen,
and enables us to fully optimize our network assets to differentiate Manx
Telecom in the marketplace."

Alcatel-Lucent's IMS solution also supports the Global System
Mobile Association's (GSMA's) Rich Communication Suite enabling Manx Telecom
to unify messaging across mobile handsets and the web to improve
communication and collaboration. These capabilities include: unified network
address book; presence; multimedia instant messaging (including SMS, text and
video) and image sharing to extend service offerings into the Internet
domain.

"Manx Telecom's deployment of our IMS solution enables the
rapid and economical addition of new subscriber services that can be easily
scaled to meet customer demand," said Adolfo Hernandez, president of
Alcatel-Lucent's activities for Europe, the Middle East and Africa. "It
ensures an optimal and seamless experience will be had by subscribers, while
also generating new sources of service revenue for Manx Telecom and
substantially lowering its Total Cost of Ownership (TCO)."

Alcatel-Lucent is a global leader in providing IMS solutions
to service providers, with more than 70+ deployments and trials worldwide. It
is also ranked #1 in IMS VoIP subscriber market share.

About Manx Telecom

- Manx Telecom is the largest telecommunications and Internet provider on
the Isle of Man, offering a full range of fixed line, mobile, and data
services to consumers and businesses.

- In addition, Manx Telecom offers a world class data and disaster
recovery facility at the only purpose built Data Centre on the Isle of Man.
The Data Centre provides business continuity, simple co-location, managed
hosting services, or full e-commerce platforms, for companies who operate on
a global scale.

- Manx Telecom has invested over GBP25 million designing and building a
Next Generation Network (NGN) to offer its personal and business customers on
the Isle of Man the ability to access and manipulate voice, data, television,
and video, on one seamless converged network - the first community in the
world to be able to do so.

About Alcatel-Lucent (Euronext Paris and NYSE : ALU)

The long-trusted partner of service providers, enterprises,
strategic industries and governments around the world, Alcatel-Lucent is a
leader in mobile, fixed, IP and optics technologies, and a pioneer in
applications and services. Alcatel-Lucent includes Bell Labs, one of the
world's foremost centres of research and innovation in communications
technology.

With operations in more than 130 countries and one of the most
experienced global services organizations in the industry, Alcatel-Lucent is
a local partner with global reach.

The Company achieved revenues of Euro 16 billion in 2010 and
is incorporated in France and headquartered in Paris.

For more information, visit Alcatel-Lucent on:
www.alcatel-lucent.com, read the latest posts on the Alcatel-Lucent
blog www.alcatel-lucent.com/blog and follow the Company 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; Valerie 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, don.sweeney at alcatel-lucent.com; Tom Bevilacqua, Tel: + 1-908-582-7998, thomas.bevilacqua at alcatel-lucent.com