PARIS, July 29 /PRNewswire/ --

- Board to Commence Search for New CEO

- CEO Russo to Remain at Helm Until Successor is Named to Ensure Business
Continuity

- Board of Directors Announces Plans to Reorganize and Change Composition

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced changes to
its leadership and Board of Directors. The company also announced its
quarterly results and demonstrated improvements to its operational results
for the third straight quarter. The Company reported that it is making steady
progress on the strategy the company laid out last fall.

To pave the way for a fully aligned governance and management model going
forward, the company announced the following changes to its management team
and Board of Directors:

- Non-Executive Chairman Serge Tchuruk has decided to step down on
      October 1, 2008.

    - CEO Pat Russo has decided to step down no later than the end of the
      year, and at the Board's request will continue to run the company until
      a new CEO is in place to effect a smooth transition and maintain the
      continuity of the company's business.

    - The Board will commence a search for a new non-executive Chairman and
      CEO immediately.

    - The Board is also initiating a process to change the composition of the
      Board to a smaller group that will include new members.



"The merger phase is now behind us. I am proud that Alcatel-Lucent has
become a world leader in a technology which is transforming our society. It
is now time that the company acquires a personality of its own, independent
from its two predecessors. The Board must also evolve and the Chairman should
give the first example, which I have decided to do," said Serge Tchuruk.

"I am very pleased with the progress we are making especially
in light of a difficult market environment," said Pat Russo. "Our strategy is
taking hold and our results are demonstrating good operational progress. That
said, I believe it is the right time for me to step down. The company will
benefit from new leadership aligned with a newly composed Board to bring a
fresh and independent perspective that will take Alcatel-Lucent to its next
level of growth and development in a rapidly changing global market. I have
every desire to ensure a smooth transition of leadership within the company
and I have informed the Board of my determination to work closely with them
until the end of the year or sooner if a successor is named, and we are in
agreement on this approach. I have great confidence in Alcatel-Lucent and
believe this to be a company with tremendous potential," said Russo.

Now that the company has moved beyond the transitional phase of the
merger, the Board has determined to restructure itself in a way consistent
with the company's needs going forward. As part of this process the Board
will reduce the size of its membership over time while adding several new
members with strong industry expertise. To initiate this process, Henry
Schacht announced that he will resign from the Board immediately believing
that, being a former CEO, he should not remain beyond the transitional stage
of the merger. Mr. Schacht was the CEO of Lucent Technologies prior to Ms.
Russo becoming CEO in January 2002.

Alcatel-Lucent will host an audio webcast at 1:00 p.m. CET to discuss the
leadership changes and the company's second quarter financial results. The
webcast can be accessed at http://www.alcatel-lucent.com/2q2008

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

SAFE HARBOR FOR FORWARD LOOKING STATEMENTS

Except for historical information, all other information in this press
release consists of forward-looking statements within the meaning of the US
Private Securities Litigation Reform Act of 1995, as amended. These forward
looking statements include statements regarding the future financial and
operating results of Alcatel-Lucent. Words such as "expects," "anticipates,"
"targets," "projects," "intends," "plans," "believes," "estimates,"
variations of such words and similar expressions are intended to identify
such forward-looking statements which are not statements of historical facts.
These forward-looking statements are not guarantees of future performance and
involve certain risks, uncertainties and assumptions that are difficult to
assess. Therefore, actual outcomes and results may differ materially from
what is expressed or forecasted in such forward-looking statements. These
risks and uncertainties are based upon a number of important factors
including, among others: our ability to appoint a new non-executive chairman
and a new chief executive officer, as well as to locate additional board
members with industry expertise, within the expected timeframes; our ability
to operate effectively in a highly competitive industry with many
participants; our ability to keep pace with technological advances and
correctly identify and invest in the technologies that become commercially
accepted; difficulties and delays in achieving synergies and cost savings;
fluctuations in the telecommunications market; exposure to the pricing
pressures in the regions in which we sell; the pricing, cost and other risks
inherent in long-term sales agreements; exposure to the credit risk of
customers; reliance on a limited number of contract manufacturers to supply
products we sell; the social, political and economic risks of our global
operations; the costs and risks associated with pension and postretirement
benefit obligations; the complexity of products sold; changes to existing
regulations or technical standards; existing and future litigation;
difficulties and costs in protecting intellectual property rights and
exposure to infringement claims by others; compliance with environmental,
health and safety laws; whether Alcatel-Lucent can continue to obtain product
cost improvements and to implement cost cutting and restructuring programs,
and whether these efforts will achieve their expected benefits; the economic
situation in general (including exchange rate fluctuations) and uncertainties
in Alcatel-Lucent's customers' businesses in particular; customer demand for
Alcatel-Lucent's products and services; control of costs and expenses;
international growth; conditions and growth rates in the telecommunications
industry; and the impact of each of these factors on sales and income. For a
more complete list and description of such risks and uncertainties, refer to
Alcatel-Lucent's Form 20-F for the year ended December 31, 2007, as well as
other filings by Alcatel-Lucent with the US Securities and Exchange
Commission. Except as required under the US federal securities laws and the
rules and regulations of the US Securities and Exchange Commission,
Alcatel-Lucent disclaims any intention or obligation to update any
forward-looking statements after the distribution of this news release,
whether as a result of new information, future events, developments, changes
in assumptions or otherwise.