New Alcatel-Lucent Ethernet Switch Outperforms Enterprise Core Market in Switch Capacity, Port Density and Power Efficiency

OmniSwitch 10K Delivers Automated Controls to Drive new "Application Fluent Network" Approach for Enterprises

PARIS, October 12, 2010 - Alcatel-Lucent (Euronext Paris and NYSE:ALU) today announced the global
availability of a powerful new 10 Gigabit Ethernet (10GigE) enterprise switch
that sets a new standard in non-blocking switch capacity, port density, low
power consumption and price per port. TheOmniSwitch 10K Modular LAN Chassis
is the first of a generation of network infrastructure offerings that
exemplify Alcatel-Lucent's approach to enabling Application Fluent Networks.

Application Fluent Network is a network optimized to deliver
high-quality, real-time applications to users across the
enterprise. By leveraging the intelligence in the OmniSwitch 10K, enterprises
benefit from a dynamically tuned network based on user, application, device
and location resulting in better services as well as streamlined operations,
and lower management costs for IT. The enterprise also saves on capital
expenditures as the average price per non-blocking port of the OmniSwitch 10K
is one quarter of its nearest competitor.

The OmniSwitch 10K sets higher performance standards in enterprise core
networks by up to four times in non-blocking switch capacity, port density
and power efficiency. It features five terabit per second of wire rate
switching capacity, supports 256 10GigE ports, and delivers the lowest power
consumption on the market at less than 1.5 watts per non-blocking Gigabit
per second bandwidth. The OmniSwitch 10K employs unique virtual queuing
technology that enables fine-tuned application delivery control that
prioritizes traffic.

"Enterprises today are facing an explosion of end-user
devices, as well as extremely challenging delivery requirements for real-time
sensitive communication applications, such as video conferencing," said
Nicolas De Kouchkovsky, Alcatel-Lucent CMO for its Enterprise business. "It
is no longer enough to just throw bandwidth at the problem. Our OmniSwitch
10K meets the challenge with intelligent management of available resources
and applications through simplified network architecture and dynamic policy
management."

Application Fluent Networks

As part of today's announcement, Alcatel-Lucent is unveiling
its Application Fluent Network approach for its next-generation network
infrastructure products. Application Fluent Networks enable a high-quality
end-user experience for delivery of real-time applications along with reduced
complexity for IT and network managers. This is achieved through a
simplified, resilient and low-latency network architecture with built-in
security. To improve the end user productivity, an Application Fluent Network
also features automatic controls for adjusting application delivery based
upon profiles, policies and context. Application Fluent Networks also deliver
streamlined operations through automated provisioning and low power
consumption.

"Virtualization, cloud computing, and the increasing array of
devices appearing on the network create a new world of complexity when
delivering applications," said Mark Fabbi, vice president, Gartner. "What is
needed is a flattened network designed to be resilient, low-latency and easy
to operate. In essence, enterprises need to provide high quality application
delivery that adjusts according to the user, application and device in use."

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's
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; Tracy Dupree, Tel: +1-818-878-4408, tracy.dupree 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