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This press release must not be published, released or distributed, directly or indirectly, in Canada, Japan or Australia.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

'China Telecom has been a long-term partner for Alcatel-Lucent in various areas. Sichuan Telecom's selection of our WAP and Web Gateway solution further consolidates our leading position in the mobile Internet service area,' said Olivia Qiu, President of Alcatel-Lucent's activities in East Asia and of Alcatel-Lucent Shanghai Bell. 'Alcatel-Lucent Shanghai Bell is devoted to providing our customers with the most advanced and customized application services.'

Alcatel-Lucent provides an end-to-end suite of integrated IP supported products for fixed and mobile service providers to extend their service offerings into the Internet domain. Alcatel-Lucent facilitates the network transformation of service providers to meet their market needs and grow their service offerings to support rich and unified communication and Web 2.0.

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

CONTACT: Alcatel-Lucent 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.

The transaction is expected to close by December 31, 2009.

Deal Value (US$ Million) 215.59
Deal Type                Private Equity
Sub-Category             Institutional Buy-out (IBO)
Deal Status              Announced: 2009-11-23

Deal Participants

Target (Company) Dunkermotoren GmbH
Vendor (Company) Alcatel-Lucent

Deal Rationale

The sale will allow Alcatel-Lucent to focus on its core operations.

"Our expansion into LTE has been part of our long term strategy for about two years and is a natural progression for us," said Georges Karam, Sequans CEO. "Our long experience with operators and OEMs combined with the tremendous base of knowledge we've accumulated over the last five years developing WiMAX silicon, puts us in a position to deliver semiconductor solutions for LTE as we have done for WiMAX. We are grateful for the backing of Alcatel-Lucent and Motorola and look forward to a close collaboration in bringing new 4G technology to reality."

"LTE is a strategic investment area for Alcatel-Lucent and we fully expect to play a central role in driving the evolution to LTE. With the support of Alcatel-Lucent, Sequans has demonstrated a high level of execution consistently over several years, delivering a steady stream of solutions to the marketplace," said Doug Wolff, VP, End-to-End Solutions at Alcatel-Lucent. "We are confident that our collaboration with Sequans will successfully contribute to the development of a vibrant LTE TD-TDD device ecosystem."

Sequans said it will use the new funding to accelerate its LTE development timeline and to add resources to its LTE teams, and intends to demonstrate its first LTE samples in early 2010 in support of pre-commercial operator trials.

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