PARIS, April 3 /PRNewswire/ --

- 29% Yearly Growth Confirms Leadership for the Seventh Year in a row

Alcatel-Lucent (Euronext Paris and NYSE: ALU) further reinforces its
optical networking leadership by consolidating its #1 position with a 24%
market share for the full year 2007, according to Ovum RHK.

"Alcatel-Lucent exceeded our expectation of their performance
in optical networking for 2007, breaking the 'law of big numbers' to outstrip
the growth of the market for the year by registering a 29% growth versus the
24% of the market as a whole," said Dana Cooperson, Vice President of the
Optical Infrastructure at Ovum RHK. "Overall, Alcatel-Lucent grew year over
year in the high growth segments, 51% in the multi-reach DWDM segment and 54%
in metro WDM, but also in the aggregation space with a 21% increase and in
the optical cross-connects segment with a 35% growth."

The on-going IP network transformation in fixed and mobile
networks, across regions and technologies continued to be a key driver of
Alcatel-Lucent's performance, along with the continued momentum in mobile
backhaul infrastructure deployment, the growing demand for Ethernet-based
services for business customers and business expansion in non-traditional
buyer segments including cable MSO, government and enterprises. Furthermore,
ROADM-based solutions continued to gain traction, especially in Europe.

"The continued success of our solutions further confirms the
role that optical networking has in competitive transformation," said Romano
Valussi, President of Alcatel-Lucent's Optics activities. "Our performance
was directly attributable to addressing market requirements and ability of
executing our technology leadership that was further enhanced with
innovations to meet video and Triple Play service demands, bandwidth growth
and mobile traffic requirements."

Customer announcements in 2007 included: Belnet (Belgium), the
Chinese Government as the sole supplier of China's largest high-speed
e-government backbone network and China Mobile, Globacom (Nigeria), Hanaro
Telecom and SK Telecom in Korea, I21 CAT Foundation and Telefónica in Spain,
NORDUNet (Nordics), Total E&P Indonesie, Transpower in New Zealand,
University of Pittsburg Medical Center (UPMC) in the U.S., T-Mobile Czech
(Czech Republic) and the completion of the optical-data network for DANTE in
the framework of Europe's largest research network GÉANT2.

Leveraging its technology and innovation leadership,
Alcatel-Lucent is spearheading the transformation to all packet transport.
Alcatel-Lucent integrates its experience, leading portfolio and innovative
vision into optical and wireless transport solutions that support a broad
range of blended service applications - such as triple play, Carrier Ethernet
connectivity, Mobile TV and 2G/3G mobile backhaul - exceeding customer needs
in the fixed, mobile, submarine and vertical markets.

According to Ovum RHK, Alcatel-Lucent also continues to lead
for full year 2007 the aggregation segment with a 23.3% market share, the
wavelength division multiplexing (WDM) segment with an 18.4% market share and
# 1 position in both metro WDM and multi-reach dense WDM segments, and the
bandwidth management segment, including digital and optical cross-connects,
with a market share of 32.6%.

About Ovum RHK

Ovum RHK provides market research advisory services to
telecoms equipment and component vendors and service providers alike. Ovum
RHK is part of Ovum, a Datamonitor company, advising on the commercial impact
of technology and market changes in telecoms, with offices in London, Paris,
Cologne, Boston, Melbourne, Seoul and San José.

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