PARIS, May 23 /PRNewswire/ --

- Building on Innovation to Support Leadership in IP DSLAM and VDSL

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced
that, following the publication of the Dell'Oro 1Q'08 access report*, the
company remains the worldwide leader in DSL with 6.6 million DSL lines
shipped in 1Q'08. With a cumulative market share in DSL port shipments of
more than 40%, more than three times that of its nearest competitor, and a
worldwide installed base of 166 million DSL lines, Alcatel-Lucent continues
to lead the fixed broadband access market.

According to Dell'Oro, Alcatel-Lucent leads the IP digital
subscriber line access multiplexer (IP DSLAM) market with a Q1 2008 market
share of 33%. Alcatel-Lucent has also seen a rapid uptake of its very
high-speed DSL (VDSL) shipments in 1Q'08, surpassing a 47% market share in
terms of ports shipped - an all-time high, and more than threefold the number
of shipments of Alcatel-Lucent's nearest competitor in this field.

Alcatel-Lucent is maintaining its regional leadership in North
America, EMEA and Rest of the World, while consolidating its number-2
position in Asia Pacific.

Alcatel-Lucent also confirmed its technological leadership in
DSL by launching its Smart DSL solution that targets operators who look at
deploying higher-speed bandwidth services over asymmetric DSL (ADSL) and VDSL
lines. The Smart DSL technology allows operators to guarantee DSL line
stability at bit rates that are typically as much as 30% higher than
traditional methods, building on Alcatel-Lucent's Artificial Noise and
Virtual Noise innovations.

"Our leadership in IP DSLAMs and VDSL shipments - as well as
our ongoing DSL innovations - demonstrate that Alcatel-Lucent continues to be
the leading vendor in fixed broadband access," says Luis Martinez Amago,
President of Alcatel-Lucent's fixed access activities. "With one out of three
fixed broadband customers around the world served through an access network
provided by Alcatel-Lucent, we are committed to support our customers'
network transformation projects."

Alcatel-Lucent's leadership in fixed broadband access builds
to a large extent on the Intelligent Services Access Manager (ISAM) family,
an IP access platform that supports a flexible mix of future-proof access
technologies (xDSL, GPON, point-to-point fiber) and a variety of network
topologies (central office as well as remote architectures). More than 185
service providers around the world have already selected the ISAM platform.

* DSL Access Concentrators (Single Service + Multiservice) -
Worldwide & Regions (1Q08). (Dell'Oro - May 13th, 2008)

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 wit 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