New Alcatel-Lucent Book "The Shift" Maps the Future of Web 2.0 and the Role of Service Providers in it

Market Research Highlights How New Global Business Models are Key to Success; $100 Billion in Potential New Revenue in the U.S. Market Alone

CABLELABS SUMMER CONFERENCE 2010, KEYSTONE, Colorado, August 16, 2010 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced
the book launch of The Shift: The Evolving Market, Players and Business
Models in a 2.0 World. This powerful new book, which draws on a wealth of
research and features a forward by Marshall Kirkpatrick of ReadWriteWeb, a
leading mind in the application developer community, discusses how the
emerging ecosystem of service providers, developers, advertisers, consumers
and business uses stands to benefit when smarter networks are used as
development platforms. The resulting potential market opportunity is as much
as $100 billion within the U.S. market alone.

At its core The Shift: The Evolving Market, Players and
Business Models in a 2.0 World analyzes the rapid pace of consumer technology
adoption and its impact on service providers, enterprises, application
developers, content providers, and handset manufacturers as they scramble to
meet the exploding demand for bandwidth and Web 2.0 service access anytime,
anywhere and over any device. It cites market research commissioned by
Alcatel-Lucent to demonstrate how a collaborative communications ecosystem is
necessary to address the challenges of consumer, enterprise and vertical
markets currently limited by industry fragmentation.

"The Shift is the result of over a year of research and
analysis and maps a compelling and profitable future for both the service
provider and application developer in the Web 2.0 world," said Allison Cerra,
head of marketing for Alcatel-Lucent Americas and one of the book's authors.
"Specifically we outline how additional value is inserted into the ecosystem
when service providers expose intelligent network capabilities. The resulting
benefits are clear for everyone — end users, developers, advertisers and
service providers. It requires an approach where consumers have control of
their experience, developers benefit from enhanced capabilities, and service
providers monetize their investments to fuel future innovation."

"This book is a good and thorough analysis of how and why
intelligent, instrumented networks could prove a valuable foundation for a
whole new world of innovation online," said Kirkpatrick.

Sample key findings:

The book's research shows consumers, developers, enterprises
and vertical markets are willing to pay for network-based features and there
are broad societal benefits within government, healthcare and education when
applications innovation is accelerated. Among the book's findings:

    - Parents, social networkers, online video enthusiasts and
      gamers value applications that incorporate network-based intelligence.
      They will pay 25-35 percent more for a service with three capabilities
      operating simultaneously vs. a service with one capability.
    - Over 50% of consumers are comfortable sharing sensitive
      profile information, such as location, presence and online behaviors,
      with their mobile provider.
    - Nearly 50 percent of commercial developers would use network-based APIs
      and are willing to pay twice as much for APIs bundled together vs.
      those sold separately. Enterprise IP developers will pay up to three
      times more.

    - A third of U.S. advertisers would use network services that enable them
      to deliver advertisements across social media sites based on user
      interests and behaviors.

Despite the complexities created by today's industry
fragmentation, the book found consumers are stringing together different
services and devices, convinced it is worth both their time and money. For
example, watching a video today often requires consumers to: load the video
onto a mobile video device like an iPod; watch on-demand streaming video over
their PC or hook it up to their television; access the video directly on
their TV if they have a set-top box or special Internet-equipped DVD player.
This complexity can be eliminated to provide a seamless, enhanced service
experience when the intelligent networks of service providers are leveraged.

Cerra and the book's co-author, Christina James, who also
supports Alcatel-Lucent marketing, analyzed commissioned primary research and
secondary market data to gain an indepth and objective view of the industry
before writing the book. The Shift: The Evolving Market, Players and Business
Models in a 2.0 World can be obtained at www.theshiftonline.com.

About Alcatel-Lucent and its activities in enabling this new ecosystem

Alcatel-Lucent is aggressively working to reduce industry fragmentation
by helping service providers, enterprises and developers work more closely
together in the creation and delivery of new end-user services. Since
December 2009, Alcatel-Lucent has announced its API Exposure Suite
(www2.alcatel-lucent.com/application_enablement/application_exposure_s
uite.php), Developer Platform (
www2.alcatel-lucent.com/application_enablement/dpp.php), Open API
Service (openapiservice.com/), Multi-screen Video Solution
(www.alcatel-lucent.com/wps/portal/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w3dnTUL8h2VAQAvhWwcA!!?LMSG_CABINET=Solution_Product_Catalog&LMSG_CONTENT_FILE=Solutions/Solution2_Detail_000241.xml),
Multi-screen Foundation Solution (
www.alcatel-lucent.com/wps/portal/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w3dnTUL8h2VAQAvhWwcA!!?LMSG_CABINET=Solution_Product_Catalog&LMSG_CONTENT_FILE=Solutions/Solution2_Detail_000242.xml)
and Optism(TM) Mobile Advertising Solution (
www.alcatel-lucent.com/wps/portal/Solutions/detail?LMSG_CABINET=Solution_Product_Catalog&LMSG_CONTENT_FILE=Solutions/Solution2_Detail_000240.xml),
as well as the acquisition of ProgrammableWeb (
www.alcatel-lucent.com/wps/portal/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4×3tXDUL8h2VAQAURh_Yw!!?LMSG_CABINET=Docs_and_Resource_Ctr&LMSG_CONTENT_FILE=News_Releases_2010/News_Article_002120.xml)
to provide an end-to-end means for building a broad ecosystem. These
toolsets and the addition of the book The Shift: The Evolving Market,
Players and Business Models in a 2.0 World advance Alcatel-Lucent's
Application Enablement vision (
www2.alcatel-lucent.com/application_enablement/open_has_value.php),
which is focused on combining the trusted and secure network capabilities of
service providers with the speed and innovation of the Web to provide a
richer end-user experience.

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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 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.

Alcatel-Lucent Press Contacts: Peter Benedict, Tel: +33(0)1-40-76-50-84, peter.benedict at alcatel-lucent.com; Mark Hudson, Tel: +1-405-844-68-27, mfhudson 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