BARCELONA, Mobile World Congress, February 16 /PRNewswire/ --

- Key Milestone - Achieved in Cooperation With Signalion and UTStarcom
Highlights Alcatel-Lucent's Commitment to Supporting the Smooth Evolution
to 4G for Service Providers Worldwide

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it
has completed a series of data calls - involving terminals from third-party
suppliers - using Long Term Evolution (LTE) technology for Time Division
Duplex (TDD) spectrum (TD-LTE), a mobile broadband standard that will be used
by operators in China and across the globe. The achievement of this key
milestone demonstrates Alcatel-Lucent's commitment to providing all mobile
operators with a smooth evolution path to 4G. The test calls were completed
by Alcatel-Lucent Shanghai Bell (ASB), Alcatel-Lucent's flagship company in
China.

"TD-LTE, which was strongly driven by operators in China, is
expected to play an important role in the development of 4G networks
globally," said Olivia Qiu, President of Alcatel-Lucent Shanghai Bell. "We
are committed to ensuring that all of our mobile customers have a smooth
evolution to 4G, no matter what kind of network they have in place today."

The tests, the first such calls completed using infrastructure
(Alcatel-Lucent's commercial eNode B base station) and terminals from
multiple vendors (UTStarcom and Signalion), involved live video streaming and
web browsing services on TD-LTE.

Alcatel-Lucent is a pioneer in the LTE market, and is
currently engaged in LTE deployments with some of the world's leading mobile
operators, including trials of LTE for both FDD and TDD spectrum.

LTE is the next evolution in mobile network standards defined
by 3GPP (Third Generation Partnership Project) and supports operations in
both paired spectrum and unpaired spectrum. It enables efficient spectrum
utilization for both legacy and future wireless frequency bands. LTE
technology provides a 4G evolution path for CDMA/EV-DO, GSM/EDGE, W-CDMA,
TD-SCDMA and WiMAX technologies.

Alcatel-Lucent's LTE solutions, including TD-LTE, are being
demonstrated live on Alcatel-Lucent's stand (Hall 8 -- #A147) at the Mobile
World Congress trade show and exhibition in Barcelona. To learn more about
Alcatel-Lucent's presence at Mobile World Congress 2009, click here.

About Alcatel-Lucent's Ultimate Wireless Broadband End-to-End
solution:

Alcatel-Lucent offers a comprehensive solution enabling
wireless and converged services providers to advance their business,
operational model and end-to-end network. It provides an end-to-end LTE
network with a full set of LTE and IP products, transformation and
integration services, plus the ngConnect open ecosystem of devices, content
and application partners. This solution brings Alcatel-Lucent's broadband and
IP market leadership to deliver unprecedented scalability, quality of
experience, business agility, and controlled network costs. For more
information: http://www.alcatel-lucent.com/lte

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted
partner of service providers, enterprises and governments worldwide,
providing solutions to 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 16.98 billion in
2008 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