Alcatel-Lucent Announces Senior Management Changes and the Establishment of a 7-Person Management Committee

PARIS, October 31 /PRNewswire/ --

- Hubert de Pesquidoux Named CFO

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced
that Hubert de Pesquidoux has been named Chief Financial Officer, replacing
Jean-Pascal Beaufret, who is leaving the company to pursue other
opportunities. Hubert de Pesquidoux currently leads the Enterprise Group of
Alcatel-Lucent.

In addition, the company said as part of its plan to improve
profitability it has streamlined its regional structure and CEO Patricia
Russo has established a seven-member management committee reporting directly
to her to lead the overall operation of the company, creating a more focused
and efficient operating model.

"I want to thank Jean-Pascal for his considerable
contributions to this company. He has been a valuable member of the team. His
experience and dedication to this new company have helped us through the
difficult, early stages of this complex merger while dealing with a
challenging market," Patricia Russo said. "Prior to the merger, Jean-Pascal
served as CFO of Alcatel during much of this turbulent decade in the
industry, ably helping to guide it while astutely managing the assets and
resources of the company and was instrumental in the financial turnaround of
Alcatel. I wish him success in the next phase of his career."

Jean-Pascal Beaufret will stay with the company for a period
of time to ensure a smooth transition.

"I am looking forward to working with his successor, Hubert,
who has been a key contributor to the success of our Enterprise business,"
Patricia Russo said. "Hubert has a great deal of experience in both
operational and financial roles throughout his career."

Prior to his position as head of the company's Enterprise
activities, Hubert de Pesquidoux held several finance positions. He was Chief
Financial Officer of Alcatel North America, Corporate Treasurer of Alcatel
for four years and spent four years in investment banking, including two
years in New York City. He also has led Alcatel's North America operations
and was a member of the Alcatel Executive Committee. He joined Alcatel in
1991. Hubert de Pesquidoux's replacement for his current position will be
named at a later date.

Simplifying Management of Regional Structure:

To streamline the company's regional operations two regional
structures will be created, one for the Americas and one that includes Asia
Pacific, Europe, Africa and the Middle East. Frederic Rose, who currently
heads the Asia-Pacific Region, will assume additional responsibilities for
the company's current Europe & North and Europe & South regions. Cindy
Christy, will lead the Americas Region. Frederic Rose and Cindy Christy will
continue to report directly to Patricia Russo.

Olivier Picard, head of the Europe and South region will
continue to oversee the Europe and South region, reporting to and serving as
deputy to Frederic Rose. Christian Reinaudo, head of the Europe and North
region, will be leaving the company to pursue other opportunities.

"I would like to thank Christian for his outstanding
contribution during the more than 29 years he has been with this company,"
Patricia Russo said. "He has held many leadership positions within the
company and was a key driver for our optical business, having served as
president of Alcatel's optical activities and its submarine unit. He laid the
foundation for the growing success of our Asia-Pacific Region and has been a
critical player in this first stage of our integration efforts. I wish him
even more success in the future."

Establishes New Management Committee:

The role of this committee encompasses the company's strategy,
organization, corporate policy matters, long term financial planning and
human resources strategy. It is charged with assuring the execution of the
company's plans and business performance.

The management committee will comprise seven business leaders:
Cindy Christy, Americas Region; Etienne Fouques, who oversees Research, CTO,
Strategy and Corporate Marketing; John Meyer, head of Services; Claire
Pedini, head of Corporate Human Resources and Communications; Hubert de
Pesquidoux, CFO; Michel Rahier, who leads the Carrier Business Group; and
Frederic Rose, Europe, Middle East, Africa and Asia Pacific. Janet Davidson,
Chief Compliance Officer and head of the Integration and IT, will serve as
secretary for the committee.

"This streamlined management structure enables a more
efficient, more focused company with clear lines of accountability," Patricia
Russo said. "I selected every member of this team, not only because of his or
her area of responsibility, but because they each bring a great deal of
experience in this complex and often difficult industry and have successfully
tackled a range of challenges throughout their careers. I look forward to
their counsel and guidance as we navigate through this next phase of our
merger, taking on the challenges and seizing on the opportunities ahead."

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:

    Regine Coqueran
    Tel: +33-1-40-76-49-24
    regine.coqueran@alcatel-lucent.com

    Mark Burnworth
    Tel: +33-1-40-76-50-84
    mark.burnworth@alcatel-lucent.com

    Alcatel-Lucent Investor Relations:

    Scott Ashby 
    Tel: +33-1-40-76-29-90
    scott.ashby@alcatel-lucent.com

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

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

    Tony Lucido 
    Tel: +33-1-40-76-49-80
    tony.lucido@alcatel-lucent.com 

    Don Sweeney
    Tel: +1-908-582-6153
    dsweeney@alcatel-lucent.com