PARIS, May 5 /PRNewswire/ --     Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced
that it has been awarded a contract by LTT (Libya Telecom and Technology),
the national Internet Service Provider in Libya, to deploy the first
commercial WIMAX network based on the 802.16e-2005 WiMAX standard, in Libya.
LTT plans to launch the commercial service on the network in September 2008.

The new network will support voice over IP (VoIP) and
high-speed internet access, enabling the delivery of advanced broadband
multimedia services, such as video streaming, through a variety of end-user
including modems and WiMAX terminals. It will also accommodate stationary,
nomadic and mobile applications and complement the carrier's existing
fixed-based broadband services.

Under the agreement, Alcatel-Lucent will provide a complete
WiMAX infrastructure solution, including the radio access network, microwave
backhaul and IP routers and will deploy around 120 sites in a first phase.
LTT has an aggressive schedule for additional deployments.

"We want to provide our residential and business customers a
wide range of beneficial, easy-to-use wireless broadband services," said
AbdulMajeed Husain the Planning and Projects department Manager of LTT.
"Alcatel-Lucent's WiMAX solution will enable us to better serve customers in
major urban centres such as Tripoli. Alcatel-Lucent's unique expertise and
ability to set up a wireless broadband network quickly and economically will
enable us to begin offering these new services to our customers in just a few
months."

Alcatel-Lucent's solution offers a cost-effective way to
augment wireline deployments in emerging market countries.

"In economies such as Libya, our WiMAX solution is a valuable
tool for rapidly and cost-effectively increasing penetration of high-speed
Internet access," said Philippe de Jarnieu Chomel, Alcatel-Lucent's Vice
President for the Mediterranean, West & Central Africa. "In addition to being
able to offer new revenue-generating services, LTT will benefit from
additional operational efficiencies because this solution offers one of the
most advanced technologies in terms of radio frequency management."

Thanks to Alcatel-Lucent's Open CPE (customer premises
equipment) Program, the infrastructure supports a wide range of terminals
from various terminal equipment partners. This program is designed to promote
an open device ecosystem, ensuring that customers have access to the widest
possible range of interoperable end-user devices at attractive pricing.

With 24 commercial contracts and more than 70 trials around
the world, Alcatel-Lucent is the undisputed leader in the WiMAX market.

Alcatel-Lucent's Universal WiMAX solution integrates the
latest technological innovations, such as "beam forming"* and MIMO**. Beam
forming enables a service provider to dramatically reduce the number of radio
sites needed to provide coverage - in some instances by as much as 40 percent
- while reducing interference and ensuring better indoor penetration of the
radio signal. MIMO helps make radio links more robust, nearly doubling the
capacity delivered in dense urban environments.

About WiMAX:

WiMAX (802.16e-2005) stands for Worldwide Interoperability for Microwave
Access. It enables Voice and Broadband connectivity for fixed, nomadic or
mobile use in urban, suburban and rural areas. For more information about
WiMAX: please visit http://www.alcatel-lucent.com/wimax.

* "Beam forming" is an Advanced Antenna Technology (AAT) that ensures
that radio power is concentrated where the WiMAX terminals are, adjusting the
beam automatically as the terminals move around the coverage area.

** "MIMO" (Multiple Input - Multiple Output) is an Advanced
Antenna Technology (AAT) that combines the radio signals transmitted and
received on separate antennas. The technique takes advantage of the multiple
paths and reflections of a radio signal to strengthen radio communications,
particularly in densely populated areas where signals can be degraded by
buildings and other physical obstacles.

About LTT

Libya Telecom and Technology, welcome to Libya's gateway to
world of Communications & Internet. LTT is the pioneer of Libyan companies
working in the field of Internet and communications and information
technology, and that's ever since 1997 when the company began undergoing
various scientific studies to lay down the foundations for a number of
projects in the field of communications and information technology. For more
information visit Libya Telecom and Technology website: http://ltt.ly

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 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