MOBILE WORLD CONGRESS, BARCELONA, February 14 /PRNewswire/ --     Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced
an agreement for Alcatel-Lucent to support the expansion of AT&T's UMTS/HSPA
(Universal Mobile Telecommunications Service/High Speed Packet Access)
wireless network. The expansion includes the deployment of Alcatel-Lucent's
UMTS/HSDPA Distributed NodeB solution, which provides operators with the
flexibility to deploy third-generation (3G) radio network elements in a wide
array of locations including the sides of buildings, existing cell sites,
remote locations and more, helping operators build out their networks more
quickly and cost-effectively.

This advanced mobile network project will enable AT&T to
expand capacity while offering sophisticated next-generation services,
including advanced multimedia, mobile broadband and converged services such
as audio and video streaming, video sharing and high-speed mobile Internet
access on 3G handsets. The technology also will help decrease AT&T's
operating expenditures due to the cost saving features of this compact,
easy-to-deploy, low-power solution.

As part of the agreement - which builds on Alcatel-Lucent's
November 2004 UMTS/HSPA supply agreement with AT&T - Alcatel-Lucent has
expanded the end-to-end, turnkey UMTS/HSPA solution, including messaging,
voice switching and network applications and services. Alcatel-Lucent also
has previously supplied AT&T with an IP Multimedia Subsystem (IMS) service
delivery solution - TDM, ATM and MPLS networking solutions, as well as
ADSL/VDSL broadband access and optical advanced platforms.

"Alcatel-Lucent has had a longstanding relationship with
AT&T," said Cindy Christy, President of Alcatel-Lucent's Americas business.
"The introduction of our Distributed NodeB reinforces Alcatel-Lucent's
worldwide leadership in mobile broadband, highlights our strong footprint in
the North America market and underscores our commitment to helping service
providers transform their services, network and business to profitably
increase voice and data penetration, and enable mass-market wireless
broadband."

As a global leader in the development and deployment of third-generation
(3G) networks, Alcatel-Lucent has deployed commercial 3G (UMTS/HSPA and
CDMA2000) systems for more than 70 operators worldwide.

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides
solutions that enable service providers, enterprise 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 revenues of Euro 17.8
billion in 2007 and is incorporated in France, with executive offices located
in Paris. 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:

    Rémi Thomas
    Tel: +33(0)1-40-76-50-61
    remi.thomas@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