Pannon Selects Alcatel-Lucent for Complete Mobile Network IP Transformation and Prepares Network for LTE

Leading Hungarian operator to deploy Alcatel-Lucent High Leverage Network(TM) from mobile core to mobile backhaul

PARIS, February 23, 2010 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that Pannon
GSM Tavkozlesi Zrt (Pannon), a leading Hungarian mobile operator and member
of the Telenor Group, has selected an all-IP solution from Alcatel-Lucent to
unify its mobile core network and its existing IP/MPLS-based mobile backhaul
infrastructure. By transforming the entire network to IP, Pannon is preparing
for the anticipated surge in mobile traffic and laying the foundation for the
future introduction of Long Term Evolution (LTE) technology.

Pannon serves some 3.6 million customers and controls approximately 33%
of the Hungarian mobile market. Today, Pannon's high-speed 3G/HSPA network,
which enables video telephony and other applications, is available in 563
towns and villages across Hungary, meaning 63.5% of the country's population.
In response to the growing demand, Pannon needed an MPLS-based solution that
was cost effective and could grow as their business grows.

"The success of our 3G services is driving the demand for new and
higher-speed services. To meet the resulting traffic growth, we needed to
transform our infrastructure into a simpler network architecture ensuring
cost-effectiveness and the highest quality in service delivery," said Gyorgy
Koller, Chief Technical Officer of Pannon. "With Alcatel-Lucent's solution,
we will evolve profitably towards the next generation of wireless broadband,
while preparing for more advanced services such as LTE."

"Pannon is the first operator in Hungary to deploy homogenous common IP
network for both the mobile core and backhaul network," said Thomas Kropik,
Managing Director Alcatel-Lucent Hungary. "By selecting an all Alcatel-Lucent
solution, Pannon is able to build on its existing hardware and network
management solution, allowing end-to-end service visibility throughout its
country wide mobile network. Alcatel-Lucent's High Leverage Network approach
gives Pannon a scalable, next generation, all-IP, multiservice infrastructure
which reduces network complexity and minimizes operational expenditures."

Alcatel-Lucent is delivering the industry's most comprehensive and
integrated mobile solution, from the IP core through to the cell tower. The
Alcatel-Lucent solution includes the 7750 Service Router (SR), 7705 Service
Aggregation Router (SAR) and the 5620 Service Aware Manager. The
Alcatel-Lucent portfolio of IP/MPLS products delivers a strong foundation on
which a family of packet solutions for mobile networks is delivered. These
solutions support reliable, scalable, future-proof, cost-efficient and
fully-managed transport allowing mobile operators to take full control of
their network and quickly enable the delivery of advanced, revenue-generating
new services. Alcatel-Lucent also is providing comprehensive professional
services including consulting, network design, project management,
integration, installation, commissioning and maintenance as part of the
agreement.

About Pannon

Pannon is a leading mobile communications company. Part of the Telenor
Group, Pannon was established in Hungary in 1994 and today is pioneering
mobile broadband and technology in order to provide efficient, affordable and
easy-to-use mobile voice and data solutions to individual consumers and the
business community.

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.

Alcatel-Lucent Press Contacts, Peter Benedict, + 33 (0)1-40-76-50-84, pbenedict at alcatel-lucent.com, or Valerie La Gamba, + 33 (0)1-40-76-12-28, valerie.la_gamba at alcatel-lucent.com, Alcatel-Lucent Investor Relations, Remi Thomas, + 33 (0)1-40-76-50-61, remi.thomas at alcatel-lucent.com, or Tom Bevilacqua, +1-908-582-7998, bevilacqua at alcatel-lucent.com, or Tony Lucido, +1-908-582-5722, alucido at alcatel-lucent.com, or Don Sweeney, +1-908-582-6153, dsweeney at alcatel-lucent.com