PARIS, December 7 /PRNewswire/ --

- 4,600 km Submarine Network Linking Greenland to Iceland and Canada

Alcatel-Lucent (Euronext Paris: ALU) (NYSE: ALU) today announced
the signature of a Euro 90 million turnkey contract with Tele Greenland to
deploy a 4,600 kilometer submarine cable network linking Greenland to Iceland
and Canada. The new cable network, called Greenland Connect, is expected to
provide international and domestic connectivity to meet the growing bandwidth
requirements for new applications - including video, data, and other
multimedia services - to serve Tele Greenland's users. The project should be
completed before the winter season of 2008.

The Greenland Connect network will consist of two main
sections (or trunk cables): the first one will span 2,500 kilometers from
Nuuk in Greenland to Milton in Newfoundland and the second will link Nuuk and
Qaqortoq to Landeyarsandur in Iceland over 2,100 kilometers. Each of the
trunk cables will be equipped with branching units allowing for future
connections north of Nuuk and also for a direct connection from Newfoundland
to Iceland. Greenland Connect will offer an ultimate capacity of up to 96 x
10Gbit/s.

The network will enable businesses and consumers to benefit
from services such as broadband Internet and video conferencing. Tele
Greenland will also be able to further enhance its end-to-end offering for
voice and data network hubs, call centers and advanced multimedia
applications for maritime safety and emergency communications.

"According to our vision "Greenland in the Centre of the
World, we have to address increased connectivity requirements, while
minimizing our operational costs and guaranteeing performance continuity at
the highest level possible. The Greenland Connect cable will provide
Greenland with a place on the worldwide Internet network, and direct access
to American and European markets" said CEO Brian Buus Pedersen, Tele
Greenland. "Alcatel-Lucent's submarine solutions offer the flexibly and
reliability our customers require to support the cost-effective delivery of
innovative services."

"The severe weather conditions of Greenland and the North
Atlantic Ocean make this project very challenging," stated Jean Godeluck,
President of Alcatel-Lucent's submarine network activity. "Our selection for
this project is based on our ability to manage from the most simple to the
most complex turnkey projects and deliver it on time."

About Tele Greenland

For more than 75 years, TELE Greenland Inc. has provided
telecommunications and marketed telecom and IT-solutions in Greenland. The
telecom division operates telecommunications activities in Greenland
according to a concession granted by the Greenland Home Rule Government. With
a total area of 2,2 million Sq. km, Greenland is the largest island in the
world, 10 times the size of The United Kingdom and part of the North American
continent. Greenland has a population of 57,000 people located along the west
and east coast of the island in 17 towns and 55 settlements.

For more information, visit Tele Greenland on the Internet:
http://www.tele.gl

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

    Mark Burnworth 
    Tel: +33-(0)1-40-76-50-84
    mark.burnworth@alcatel-lucent.com


    Alcatel-Lucent Investor Relations

    Scott Ashby 
    Tel: +33-(0)1-40-76-29-90
    scott.ashby@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

    Tony Lucido 
    Tel: +33-(0)1-40-76-49-80 
    alucido@alcatel-lucent.com

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