PARIS, July 28 /PRNewswire/ --     Alcatel-Lucent (Euronext Paris and NYSE: ALU) announced today
that it has acquired Velocix, a leading global provider of Content Delivery
Network (CDN) infrastructure and services to Internet and broadband service
providers and media and entertainment companies.

CDNs optimize digital distribution over the Internet by
replicating popular video and rich media content to geographically dispersed
networks of delivery servers. This allows user requests for content to be
served more rapidly and reliably from these local delivery servers rather
than from a single source.

"With the acquisition of Velocix, Alcatel-Lucent brings a new,
unique value proposition to network operators struggling to support their
customers' demands for high-performance delivery of rich media content -
technology solutions for localized caching, as well as metro and
regional/national overlay CDN services that enable ISPs and content providers
to establish mutually beneficial commercial agreements," said Melanie A.
Posey, Research Director, Hosting & Telecom Services, IDC.

The acquisition of Velocix brings Alcatel-Lucent an enabling
CDN infrastructure solution for Internet Service Providers and a wealth of
experience and expertise that complements its existing technology and
business initiatives. Velocix has a proven track record of constant
innovation and advancement in Content Delivery Network technologies. The
company was first to market a turn-key solution - Velocix Metro - that allows
Internet and broadband service providers to deploy their own advanced
delivery capabilities to support their digital content initiatives.

"This acquisition strengthens our leading-edge portfolio of
products and services in a key strategic area. Combined with our integration
capabilities, it fits nicely into our Application Enablement strategy and our
vision of the 'high leverage network' that supports it. It also demonstrates
our company's commitment to investing in the capabilities, know-how and
technologies needed to effectively support the rapid evolution towards a
video-centric world - with maximum reliability and optimal quality of
experience," said Philippe Keryer, President of Alcatel-Lucent's Carrier
product group.

"Velocix, with demonstrated strength in video and multimedia
content delivery technologies, the highly distributed nature of their network
architecture, and the skills and expertise of their team made them an ideal
fit for Alcatel-Lucent," Philippe Keryer added.

"We are very excited at becoming part of Alcatel-Lucent and
the opportunities that this will give Velocix and its customers", said John
Lee, Chief Executive Officer at Velocix. "The acquisition is a great fit for
both businesses, fully leverages our achievements to date and adds the
strategic backing of a major corporation that is well positioned to shape the
future of digital content distribution."

About Velocix

Velocix is a UK headquartered Content Delivery Network (CDN)
solutions and services provider to the media, entertainment, software and
telco industries.The Velocix global network provides an Internet fast lane
for digital assets such as video, music, software and games. With Velocix,
high quality streamed video plays uninterrupted from start to finish and file
downloads complete without failure in a fraction of the time.

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