PARIS, December 3 /PRNewswire/ --     Alcatel-Lucent (Euronext Paris and NYSE:ALU) has been selected
by Telecom New Zealand (Telecom) to deploy its IP Multi-Protocol Label
Switching (IP/MPLS)-based mobile backhaul solution. This will enable Telecom
to accommodate its growing cellular W-CDMA and High Speed Packet Access
(HSPA) traffic needs and to cost effectively scale its mobile services across
a unified network infrastructure. Alcatel-Lucent's IP/MPLS solution is being
rolled out across Telecom nationwide and supports its strategic transition to
all-IP network.

Alcatel-Lucent's solution features pseudowire technology, which adapts 
various traffic and media types from the W-CDMA base stations into IP/MPLS. 
As Telecom moves to a W-CDMA and HSPA deployment, the backhaul network will
have the flexibility and cost-effective scalability needed to
support strong traffic growth. Telecom's mobile backhaul network will also
leverage the existing IP/MPLS aggregation network already provided by
Alcatel-Lucent for residential and business services. This supports Telecom's
strategic decision to consolidate services onto a converged network
infrastructure.

"Alcatel-Lucent's backhaul solution resolves the issue of 
cost-effectively transporting the exponential growth of data
services we expect from the deployment of the W-CDMA mobile network," said
Stuart Sutton, Chief Technology Officer - Technology and Shared Services,
Telecom New Zealand. "It will allow us to scale efficiently and rapidly roll
out exciting new mobile broadband services, while its high availability
features will ensure a reliable mobile broadband service for our customers."

Alcatel-Lucent's pseudowire solution includes the 7705 Service
Aggregation Router (SAR) which is deployed in cellular base station sites to
consolidate and aggregate traffic. The Alcatel-Lucent 7705 SAR allows service
providers to scale traffic and simultaneously flatten their cost-curves for
leased bandwidth, therefore improving their competitiveness. The 7705 SAR
inherits its software architecture from the widely deployed IP/MPLS Service
Router product line, retaining and building on its qualities but at a price
and form factor appropriate to the cell site and hubs.

"We are building on our success with Telecom in supporting existing
residential and business services with our IP/MPLS products," said Steve
Lowe, Chief Executive Officer, Alcatel-Lucent New Zealand. "With the addition
of the 7705 SAR, and interworking capability with our entire service routing
portfolio, Alcatel-Lucent is bringing an end-to-end converged solution for
mobile traffic transport."

The contract reconfirms Alcatel-Lucent's expertise in addressing mobile 
operators' requirements, enabling CDMA and GSM/W-CDMA service providers to 
profitably scale their networks. By providing an evolution path for any 
type of infrastructure (copper, fibre, wireless), Alcatel-Lucent delivers 
integrated, end-to-end management across fixed and mobile technology. With 
its Mobile Evolution Transport Architecture (META), Alcatel-Lucent has 
developed the industry's most comprehensive vision for the
evolution of mobile networks from TDM to all-IP.

In addition to the Alcatel-Lucent 7705 SAR, TNZ has already deployed a 
Carrier Ethernet network based on Alcatel-Lucent's 7450 Ethernet Services 
Switch and an IP/MPLS infrastructure for residential services based
on the Alcatel-Lucent 7750 Service Router - all managed end-to-end by the
Alcatel-Lucent 5620 Service Aware Manager.

Over 250 service providers in more than 100 countries around
the world have selected the Alcatel-Lucent IP/MPLS portfolio as key elements
of their IP transformation. According to Ovum RHK, Alcatel-Lucent holds the
No. 2 position in the IP/MPLS Edge market segment.

For more information, please visit: http://www.alcatel-lucent.com/ipnews

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted partner of
service providers, enterprises and governments worldwide, providing solutions
that deliver voice, data and video communication services to end-users. A
leader in fixed, mobile and converged broadband networking, IP technologies,
applications and services, Alcatel-Lucent leverages the unrivalled technical
and scientific expertise of Bell Labs, one of the largest innovation
powerhouses in the communications industry. With operations in more than 130
countries and the most experienced global services organization in the
industry, Alcatel-Lucent is a local partner with a global reach.
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