Broadband World Forum, BRUSSELS, September 29 /PRNewswire/ --     Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced
that KPN, the leading service provider in the Netherlands, has signed a
three-year contract with Alcatel-lucent for the delivery of a next generation
broadband access network. Alcatel-Lucent's solution which also includes CPE,
maintenance and services, will enable KPN to offer triple play services
(voice, IPTV and high speed Internet) and represents a major step in the
operator's next generation access network roll-out. The agreement also
reinforces Alcatel-Lucent's strategic position as KPN's supplier for access
products and its leading position in the Dutch market. With this contract
Alcatel-Lucent will become the single vendor for NG DSLAMs and associated
CPEs for a three year period.

Alcatel-Lucent will deploy its point-to-point,
fiber-to-the-home (FTTH) and VDSL2 fiber-to-the node (FTTN) network
solutions, all from Alcatel-Lucent's ISAM access family and managed by the
same network management system. Alcatel-Lucent will also provide network
management tooling, CPE and residential gateways, as well as installation,
deployment and commissioning services.

"We have chosen Alcatel-Lucent to be our strategic vendor of
choice for the Next Generation DSLAM's thanks to their expertise and global
experience in delivering end-to-end fixed networks, in particular VDSL2 and
fiber networks. They have demonstrated in the past their absolute worth in
deploying challenging networks" commented Joost Farwerck, director Wholesale
& Operations, at KPN. " Alcatel-Lucent has demonstrated in the past their
experience in deploying challenging networks such as FTTH and VDSL2 networks,
and we are more than confident that they will greatly help us satisfy our
end-users."

"The strategic choice of KPN means that we are highly
committed to help them strengthen their market position with the best
solution for voice, TV and Internet," said Coert de Boer, President of
Alcatel-Lucent's activities in The Netherlands. "With this contract, we also
become the undisputed leader in broadband access in the Netherlands", he
added.

Alcatel-Lucent will deploy its ISAM family of products,
specifically the 7302 ISAM point-to-point and the 7330 ISAM FTTN solution.

Alcatel-Lucent continues to lead the broadband access market
with more than 173 million DSL lines shipped to date, a 39% market share
according to industry analyst firm Dell'Oro, and ISAM deployments with more
than 190 customers worldwide. Furthermore, Alcatel-Lucent is a clear market
and technology leader, deploying more than 85 all fiber FTTH deployments
-GPON, point-to-point, active Ethernet - with incumbents, new entrants,
municipalities, utilities and real estate owners and developers.
Alcatel-Lucent is also a global leader in the provision of design,
deployment, maintenance and operation of network services.

About KPN

KPN is the leading telecommunications and ICT service provider
in the Netherlands, offering wireline and wireless telephony, internet and TV
to consumers and end-to-end telecom and ICT services to business customers.
KPN's subsidiary Getronics operates a global ICT services company with a
market leading position in the Benelux, offering end-to-end solutions in
infrastructure and network-related IT. In Germany and Belgium, KPN pursues a
multi-brand strategy in its mobile operations and holds number three market
positions through E-Plus and BASE. KPN provides wholesale network services to
third parties and operates an efficient IP-based infrastructure with global
scale in international wholesale through iBasis.

At 30 June 2008, KPN served over 35 million customers, of
which 28.7 million in wireless services, 4.2 million in wireline voice, 2.5
million in broadband Internet and 0.6 million in TV. With 25,729 FTEs (42,976
FTEs including Getronics), KPN posted revenues of EUR 7.2bn and an EBITDA of
EUR 2.5bn in the first half year of 2008. KPN was incorporated in 1989 and is
listed on the Amsterdam Stock Exchange.

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