PARIS and MUMBAI, May 12 /PRNewswire/ --

- To Start With, Joint Venture to Provide Managed Services to Reliance
Communications CDMA and GSM Networks

Reliance Communications, India's largest integrated telecommunications
service provider, and Alcatel-Lucent (Euronext Paris and NYSE: ALU) today
announced forming a global joint venture. Combining the unique strengths of
Alcatel-Lucent and Reliance Communications, the joint centure company would
foray in the fast growing USD 16 billion Managed Network Services industry
and will cater to telecom operators, both CDMA and GSM, across the globe.

The first assignment of this joint venture will be to provide Managed
services for Reliance Communications nationwide CDMA & GSM networks in India.

"World over, the biggest challenge telecom operators are facing is to
continuously improve competitiveness by reducing operating expenditure and
enhancing network quality to provide superior customer experience. The
combined expertise and experience of Reliance and Alcatel-Lucent would create
an unmatched blend of leadership in technology, innovation, scale of
operations and customer service to become the worlds leading Managed Network
Services Provider," said Mr. Sandip Biswas, Head - Managed Network, Reliance
Communications. "The joint venture is a leap forward in Reliance
Communications' vision to continuously redefine the benchmarks of customer
experience and enhance value for our 2 million shareholders."

With the unique combination of network management and operations
expertise, consulting and IT experience, as well as technology, the Joint
Venture would facilitate a proactive, quick-to-respond environment to
fast-paced and dynamic market conditions to leading telecom service providers
including Reliance Communications. The joint venture will support the
expansion and growth of Reliance Communications, within and outside India,
bringing predictability of the operations and related expenses, while
maintaining the highest standards of customer experience.

"Alcatel-Lucent is committed to help Reliance retain its market
leadership role by helping them increase their customer satisfaction and
business capitalisation by operating and maintaining their networks together
with managing complex network projects," said Andy Williams, President of
Alcatel-Lucent's Services business. "This partnership confirms our trusted
partner relationship with Reliance Communications and reinforces
Alcatel-Lucent's position as a strong and competitive managed services
provider."

A new legal entity is being formed as part of the joint venture.
Alcatel-Lucent will have the operational control of the new entity. Reliance
Communications is represented in the Joint Venture through its wholly owned
subsidiary.

The joint venture would thereafter expand its operations in the global
arena. This joint venture will create a unique cornerstone and cost-effective
bridge for managed services globally.

About Reliance Communications

Reliance Communications Limited founded by the late Shri Dhirubhai H
Ambani (1932-2002) is the flagship company of the Reliance Anil Dhirubhai
Ambani Group. The Reliance Anil Dhirubhai Ambani Group currently has net
worth in excess of Rs. 55,000 crore (USD 14 billion), cash flows of Rs.
11,000 crore (USD 2.8 billion), net profit of Rs. 7,700 crore (USD 1.9
billion) and zero net debt. Rated among "Asia's Top 5 Most Valuable Telecom
Companies", Reliance Communications is India's foremost and truly integrated
telecommunications service provider. The company, with a customer base of
over 48 million including over 1.5 million individual overseas retail
customers, ranks among the Top 10 Asian Telecom companies by number of
customers. Reliance Communications corporate clientele includes 1850 Indian
and multinational corporations, and over 250 global carriers. Reliance
Communications has established a pan-India, next generation, integrated
(wireless and wireline), convergent (voice, data and video) digital network
that is capable of supporting best-of-class services spanning the entire
infocomm value chain, covering over 15,000 towns and 400,000 villages.
Reliance Communications owns and operates the world's largest next generation
IP enabled connectivity infrastructure, comprising over 165,000 kilometres of
fibre optic cable systems in India, USA, Europe, Middle East and the Asia
Pacific region. For more information, visit
http://www.reliancecommunications.co.in

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 organisations 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