PARIS, July 6 /PRNewswire/ --

- Demonstrations of Alcatel-Lucent's Femto Base Station Router

Alcatel-Lucent (Paris: Euronext and NYSE: ALU) today announced
that it is collaborating with Japanese service provider, Softbank Mobile on a
series of demonstrations of its 3G wireless in-building solutions in Japan.
The technology demonstrations are designed to highlight the benefits of home
base stations and feature Alcatel-Lucent's Femto Base Station Router (BSR),
an innovative solution that packs W-CDMA/HSPA radio access and core network
elements into one compact, easy-to-deploy unit.

These demonstrations are a key element in efforts to deliver high-speed
mobile voice and data services to Softbank's customers in their homes and
business locations.

The range of demonstrations Alcatel-Lucent is conducting with
Softbank include the completion of circuit-switched voice calls and the
delivery of high-speed data services using Softbank handsets, and High-Speed
Downlink Packet Access (HSDPA) technology using laptops equipped with HSDPA
PC cards.

"These successful demonstrations represent a big step forward
for Alcatel-Lucent in establishing itself as a leader in the delivery of
in-building wireless solutions," said Frederic Rose, President of
Alcatel-Lucent's activities in Asia-Pacific. "Alcatel-Lucent's Femto BSR
offers an ideal way for service providers - such as Softbank Mobile - to
deliver broadband wireless services in a home or small office more
efficiently than a traditional cellular network could."

Based on Alcatel-Lucent's revolutionary "flat IP (Internet
Protocol)" architecture, the Femto BSR integrates the W-CDMA Node B and
packet core network elements, including the radio network controller, into a
single, compact box. This technique reduces the number of network elements
(and related "layers") that network traffic has to travel through,
eliminating bottlenecks in the network and thereby increasing data throughput
and lowering latency. Additionally, this approach enables operators to deploy
and optimize smaller, stand-alone base stations that register themselves on
the network, making them easier for the service provider to manage, even in
large numbers.

In addition to the savings in cost and space, the Femto BSR
offers exceptional flexibility, enabling operators to support a variety of
deployment scenarios; the Femto BSR can be offered with integrated radio
network controller (RNC) functionality, router functionality or both,
depending on the needs of the operator and the network architecture they have
in place.

As a global leader in the development and deployment of
third-generation (3G) networks, Alcatel-Lucent has deployed commercial 3G
(W-CDMA/HSPA and CDMA/EV-DO) systems for more than 70 operators worldwide.

About Softbank

Softbank Group is the holding company for several businesses
linked to Internet culture, technology services and e-commerce. Three
companies are at the core of the operation: Softbank BB for broadband
infrastructure, Softbank Telecom for fixed communication and Softbank Mobile
for mobile telecommunication business.

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
    
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    Alcatel-Lucent Investor Relations
    
    Pascal Bantegnie
    Tel: +33-(0)-1-40-76-52-20
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    Maria Alcon 
    Tel: +33-(0)-1-40-76-15-17
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