In the event that the Bonds are not issued, Alcatel-Lucent would not repurchase the 2011 OCEANEs. The Bonds would not be issued in the event of the termination of or default relating to the underwriting agreement entered into in connection with the offering of the Bonds.

The repurchased 2011 OCEANEs will be cancelled as provided in their issue contract and pursuant to law.

This press release does not constitute an offering, and the offering of the Bonds is not a public offering in any jurisdiction except in France, subject to the following:

    In France:

    - the Bonds were initially offered only in a private placement
      in accordance with article L. 411-2-II of the French Monetary and
      Financial Code;

    - Following such placement and the fixing of the final terms
      of the offering, a visa will be requested from the French Autorite des
      marches financiers (the "AMF") on the offering circular (prospectus).
      Upon receipt of such visa, the Bonds will be offered to the public in
      France during the following three trading days.

Disclaimer

This press release must not be published, released or distributed, directly or indirectly, in Canada, Japan or Australia.

This press release and the information contained herein do not constitute an offer to sell or subscribe, nor the solicitation of an order to purchase or subscribe, securities in the United States or in any other country. In particular, securities may not be offered or sold in France absent a prospectus approved by the AMF. The release, publication or distribution of this press release in certain jurisdictions may be restricted by laws or regulations. Therefore, persons in such jurisdictions into which this press release is released, published or distributed must inform themselves about and comply with such laws or regulations.

The offer and sale of the Bonds in France were first carried out in a private placement in accordance with article L.411-2-II of the French Monetary and Financial Code. The offer will be made to the public in France only after the granting of the "visa" by the AMF on the prospectus.

With respect to the member States of the European Economic Area, other than France, which have implemented the Directive EC/2003/71 called the "Prospectus Directive" (each, a "relevant member State"), no action has been undertaken or will be undertaken to make an offer to the public of the Bonds requiring a publication of a prospectus in any relevant member State. As a result, the Bonds may only be offered in relevant member States:

(I) to legal entities which are authorised or regulated to operate in the financial markets or, if not so authorised or regulated, whose corporate purpose is solely to place securities;

(II) to any legal entity which has two or more of the following criteria: (1) an average of at least 250 employees during the last financial year; (2) a total balance sheet of more than EUR 43 million; and (3) an annual net turnover of more than EUR 50 million, as per its last annual or consolidated accounts;

(III) in any other circumstances, not requiring the issuer to publish a prospectus as provided under article 3(2) of the prospectus directive.

The securities referred to in this press release have not been and will not be registered under the U.S. Securities Act of 1933, as amended ("US Securities Act"), and may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities Act. Alcatel-Lucent does not intend to register any portion of the planned offering in the United States or to conduct a public offering of securities in the United States.

This press release is not an invitation nor an inducement to engage in investment activity for the purpose of Section 21 of the Financial Services and Markets Act 2000, as amended ("FSMA"). This press release is directed only at (i) persons outside the United Kingdom; or (ii) persons in the United Kingdom that are "qualified investors" within the meaning of Section 86(7) of FSMA that are also (a) persons authorised under FSMA or otherwise having professional experience in matters relating to investments and qualifying as investment professionals under article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Financial Promotion Order"); or (b) high net worth companies, unincorporated associations and other persons to whom article 49(2) (a) to (d) of the Financial Promotion Order applies; or (c) any other persons to whom this press release for the purposes of Section 21 of FSMA can otherwise lawfully be made available (all such persons together being referred to as "Relevant Persons"). Any person in the United Kingdom that is not a Relevant Person should not act or rely on this press release. The securities referred to in this press release or any investment or controlled activity to which such securities relate are only available to, and will be engaged in only with, Relevant Persons.

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted partner of service providers, enterprises 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 16.98 billion in 2008 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com

SOURCE Alcatel-Lucent

'This is a major breakthrough on our path to become the first vendor to offer a commercial solution for the 'Digital Dividend' spectrum', said Ken Wirth, President of Alcatel-Lucent's LTE/4G Solutions. 'Our goal is to quickly and effectively support operators in their plans to further enhance the availability of broadband services all over the region, so we adapted our LTE solution to the 800 MHz frequency band quite early on and we are now working with customers on field trials.'

Deploying LTE at 800MHz has a clear benefit for operators which can require fewer sites to cover rural areas, thus reducing overall environmental impact.

800 MHz spectrum LTE deployment could be an ideal complement to a 2.6GHz spectrum LTE deployment where smaller cells are required, in a dense urban environment for example. Alcatel-Lucent has live 2.6GHz LTE networks in Stuttgart and Velizy in France and its 2.6GHz radio modules are CE marked, clearing the way for shipment of 2.6GHz LTE base stations in the European Economic Area (EEA).

Background on the 4G/LTE solutions center in Stuttgart

At its German headquarters located in Stuttgart, Alcatel-Lucent has installed an end-to-end solutions center for 4G/LTE. The solutions center consists of a complete LTE end-to-end network, including an 'on the air' radio network in the Northern District of Stuttgart. For several months Alcatel-Lucent has been successfully testing 4G/LTE mobile services on the 2.6GHz spectrum band. In these tests, Alcatel-Lucent achieved very high data rates of up to 60 Mbit/s in the 10 MHz spectrum and very short round-trip delay, or 'latency' times. The tests include innovative LTE-enabled applications which give mobile users a rich experience comparable to that available on fixed networks today.

Background on Alcatel-Lucent's LTE position

Alcatel-Lucent is a leading player in LTE, and is actively engaged in the majority of LTE projects being pursued by operators around the world, including both commercial deployment and trials with operators including Verizon Wireless, Telefonica, Etisalat, FT/Orange and NTT DoCoMo.

For more information about Alcatel-Lucent's end-to-end LTE solution, please visit: http://www.alcatel-lucent.com/lte

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted partner of serviceproviders, enterprises 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 16.98 billion in 2008 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com

CONTACT: Alcatel-Lucent Press Office e-mail: press@alcatel-lucent.com

((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com.

Key Topics Covered:

Executive summary

In a nutshell

Ovum view

1Q09 quarterly results

Changes to our ON share reporting, commencing 1Q09

Global spending down 18% from 4Q08 and 9% from 1Q08

Key messages

Battle of the titans: Huawei upsets Alcatel-Lucent to grab the 1Q09 lead; Alcatel-Lucent hangs onto the annualized share leadfor now

Changes in top ten market positions: ZTE and Ciena move up, Nokia Siemens and Tellabs move down

Macroeconomic malaise, differentially severe in North America and western Europe, is a significant factor in share changes but it's not the only factor: strategy matters

Market share - global

Spending shifts to emerging markets and WDM segments continue to shake up the vendor field

Market share changes

Analysis of quarterly results

Market growth and outlook

List of Tables

Table 1: Analysis of quarterly results, global ON

Table 2: 1Q09 global ON spending versus revised 2009 forecast

Table 3: Analysis of quarterly ON results, Asia-Pacific

Table 4: Market share by subregion, Asia-Pacific ON, 1Q09

Table 5: 1Q09 Asia-Pacific ON spending versus revised 2009 forecast

Table 6: Product segment-level market assessment: Asia-Pacific

Table 7: Analysis of quarterly ON results, EMEA

Table 8: Market share by subregion, EMEA ON, 1Q09

Table 9: 1Q09 EMEA ON spending versus revised 2009 forecast

Table 10: Product segment-level market assessment: EMEA

Table 11: Analysis of quarterly ON results, North America

Table 12: 1Q09 North American ON spending versus revised 2009 forecast

Table 13: Product segment-level market assessment: North America

Table 14: 1Q09 SCA ON spending versus revised 2009 forecast

Table 15: Product segment-level market assessment: SCA

List of Figures

Figure 1: Global ON market revenues by quarter, 2Q07-1Q09

Figure 2: Foreign exchange shifts complicate market analysis

Figure 3: Comparison of annualized ON market share for the top five global vendors

Figure 4: Market share (rolling 4 quarters), global ON

Figure 5: Market share gains and losses, global ON

Figure 6: Global ON market by region, rolling 4 quarters

Figure 7: Global ON market by segment, rolling 4 quarters

Figure 8: Rolling 4Q spending in aggregation vs. metro WDM, global

Figure 9: Market share (rolling 4 quarters), Asia-Pacific ON

Figure 10: Comparison of annualized ON market share for the top four Asia-Pacific vendors

Figure 11: Market share gains and losses, Asia-Pacific ON

Figure 12: Market share (rolling 4 quarters), EMEA ON

Figure 13: Comparison of annualized ON market share for the top four EMEA vendors

Figure 14: Market share gains and losses, EMEA ON

Figure 15: Market share (rolling 4 quarters), North American ON

Figure 16: Comparison of annualized ON market share for the top four North American vendors

Figure 17: Market share gains and losses, North American ON

Figure 18: Comparison of annualized ON market share for the top four South and Central American vendors

For more information visit http://www.researchandmarkets.com/research/c35c29/market_share_1q09

Source: Ovum

CONTACT: Laura Wood, Senior Manager, Research and Markets Fax: from USA: 646-607-1907 From the rest of the world: +353-1-481-1716 e-mail: press@researchandmarkets.com

((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com.