PARIS, July 3 /PRNewswire/ --     Alcatel-Lucent (Euronext Paris and NYSE: ALU) today
announced that it has been tasked by BT to support the automation of end-user
customer migration from BT's legacy telephone network to its 21st Century
Network (21CN). Alcatel-Lucent is a strategic supplier for BT's 21CN
programme.

Alcatel-Lucent will assist BT in ensuring that its 21CN
Migration Control Centre (MCC) which oversees the upgrade of customers from
the legacy network to the new IP network, is operational and ready to meet
the challenges of migrating 20 million customers over to the new all-IP
network.

In addition to this activity, Alcatel-Lucent has been selected
to develop a workflow tool that will provide the management tracking of
deployment activities associated with the customer upgrade process, enabling
BT to maintain its aggressive deployment schedule and manage the transition
of over 5,500 telephone exchanges. The system offers a web-based interface
that will monitor the migration activity process and will identify and
automatically escalate any issues raised. This intuitive learning capability
is integrated into the architecture as it moves forward, enabling BT to gain
significant network efficiencies as the volume of site migrations increase.

In addition to its role in providing BT's network
transformation, Alcatel-Lucent is a strategic supplier for several critical
projects in the upgrade of BT's telephone network infrastructure, from the
core through to the edge and now the migration of customers onto the new
network.

"As a worldwide leader in executing IP transformation
projects, Alcatel-Lucent provides BT with a service solution that delivers a
seamless and cost-efficient system and process," said John Meyer, President,
Alcatel-Lucent Services activities.

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides
solutions that enable service providers, enterprises and governments
worldwide, to deliver voice, data and video communication services to
end-users. As a leader in fixed, mobile and converged broadband networking,
IP technologies, applications, and services, Alcatel-Lucent offers the
end-to-end solutions that enable compelling communications services for
people at home, at work and on the move. With operations in more than 130
countries, Alcatel-Lucent is a local partner with global reach. The company
has the most experienced global services team in the industry, and one of the
largest research, technology and innovation organizations in the
telecommunications industry. Alcatel-Lucent achieved adjusted proforma
revenues of Euro 18.3 billion in 2006 and is incorporated in France, with
executive offices located in Paris. [All figures exclude impact of activities
transferred to Thales]. For more information, visit Alcatel-Lucent on the
Internet: http://www.alcatel-lucent.com

Alcatel-Lucent Press Contacts

    Régine Coqueran
    Tel :+33-(0)1-40-76-49-24
    regine.coqueran@alcatel-lucent.com

    Mary Ward
    Tel.: +1-908-582-7658
    mary.ward@alcatel-lucent.com

    Alcatel-Lucent Investor Relations

    Pascal Bantegnie
    Tel: +33-(0)1-40-76-52-20
    pascal.bantegnie@alcatel-lucent.com

    Maria Alcon
    Tel: +33-(0)1-40-76-15-17
    maria.alcon@alcatel-lucent.com

    John DeBono
    Tel: +1-908-582-7793
    debono@alcatel-lucent.com