News Release

Alcatel-Lucent Introduces Packet Core to Support the Delivery of Advanced Multimedia Services on LTE-Based Wireless Broadband Networks

All-IP Evolved Packet Core (EPC) Leverages Alcatel-Lucent's IP Routing and Triple Play Expertise to Help Operators Deliver the "Ultimate Wireless Broadband" Experience

March 31, 2009

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LAS VEGAS, NV — Alcatel-Lucent (Euronext Paris and NYSE: ALU) today introduced its Evolved Packet Core (EPC), an all-IP portfolio designed specifically for operators planning to offer mobile broadband services using Long Term Evolution (LTE) technology. Already selected by leading adopters of LTE such as Verizon Wireless, the Alcatel-Lucent EPC - a critical element of the company's end-to-end LTE solution - leverages Alcatel-Lucent's expertise in IP service routing and unmatched experience in the deployment of wireline "triple play" networks.

LTE is a new wireless broadband technology that offers data speeds comparable to the fastest fixed broadband technologies, and offers significantly reduced latency to ensure a high-quality end-user experience for real-time, multimedia services. As consumers embrace high-bandwidth, multimedia and Web services on their mobile devices, operators are moving to LTE to provide the performance, quality and ubiquitous coverage required to remain competitive in the market.

"The move to LTE is one of the most critical network transformations we will see within the next 5-10 years," said Basil Alwan, President of Alcatel-Lucent's IP activities. "Consumers are now using their wireless devices for more sophisticated broadband applications and mobile operators have recognized that a new IP network architecture is required to meet the resulting demands.

The Alcatel-Lucent Evolved Packet Core leverages our proven technological and market. leadership in IP service routing as well as our expertise in wireline broadband network transformation projects with operators around the world. As a result, we are providing an end-to-end LTE solution that maximizes LTE revenues while minimizing the total cost of ownership and enabling the ultimate wireless broadband experience."

"The EPC plays a pivotal role in enabling operators who move to LTE to meet the significant market expectations for better service at lower cost," said Stephane Teral, Principal Analyst, Mobile and FMC Infrastructure with Infonetics. "The industry is moving to IP, and ultimately to bridging the mobile and fixed networks, which gives Alcatel-Lucent a clear advantage given that it has the largest fixed line footprint in the world, demonstrated IP leadership, and a solid heritage in wireless. Its comprehensive end-to-end solution, which draws significantly on all of these strengths, makes it a formidable competitor."

The Evolved Packet Core incorporates four elements, including: the Mobility Management Entity (MME) and Dynamic Services Controller (DSC), which manage dynamic mobility and policy; and the Serving Gateway (SGW) and Packet Data Network (PDN) Gateway, which are implemented as plug-in hardware and software modules for the Alcatel-Lucent 7750 Service Router. With the 7750 SR, operators are able to deploy a single router that supports 2G, 3G and LTE as well as wireline networks, reducing cost, complexity and space requirements.

The EPC solution draws on Alcatel-Lucent's market expertise: more than 30,000 7750 SR nodes have shipped to 260+ operators, and the MME leverages over 20 years of mobility management experience and expertise integrated on the latest generation Advanced Telecommunications Computing Architecture (ATCA) purpose-built platform. All EPC elements are managed by the Alcatel-Lucent 5620 Service Aware Manager (SAM).

In addition, the EPC integrates with the Alcatel-Lucent Mobile Evolution Transport Architecture (META), providing a smooth all-IP evolution path to LTE technologies in both the transport and core networks.

Heavy Reading Senior Analyst, Gabriel Brown, has written a white paper entitled "LTE/SAE & the Evolved Packet Core: Technology Platforms & Implementation Choices" which provides insight into the key considerations for EPC. "Evolved Packet Core is critical to capturing the cost and performance benefits of LTE," said Brown. "It introduces demanding new requirements to the mobile core network and must support the robust mix of services operators need to maximize return on LTE infrastructure investment. Suppliers with deep expertise in both wireless and IP networking technology are well positioned to deliver and support this leading edge equipment." To read the full white paper visit our Evolved Packet Core website at: http://www.alcatel-lucent.com/epc

Alcatel-Lucent's EPC portfolio will be demonstrated in the company's booth #6714 at the CTIA Wireless 2009 tradeshow and exhibition April 1-3 at the Las Vegas Convention Center.

About Alcatel-Lucent's Ultimate Wireless Broadband End-to-End solution
Alcatel-Lucent's EPC portfolio is a fundamental pillar of the company's Ultimate Wireless Broadband End-to-End solution. This comprehensive solution enables wireless and converged services providers to advance their business, operational model and end-to-end network. It provides an end-to-end LTE network with a full set of LTE and IP products, transformation and integration services, plus the ng Connect open ecosystem of devices, content and application partners. This solution leverages Alcatel-Lucent's broadband and IP market leadership to deliver unprecedented scalability, quality of experience, business agility, and controlled network costs. For more information: www.alcatel-lucent.com/lte

About Alcatel-Lucent
Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted partner of service providers, enterprises and governments worldwide, providing solutions that 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: www.alcatel-lucent.com.

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