Alcatel-Lucent awarded a multi-million Euro contract by RTE, the French electricity network operator, to deploy an additional fiber-optic network

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has been selected by RTE, the French public power transmission network operator, to deploy an additional several-thousand-kilometer fiber-optic network on RTE’s high-voltage transmission grid. The agreement includes project management, engineering, supply, network installation and commissioning, as well as maintenance for the majority of the network.

This turnkey fiber-optic network, code-named ROSE 7 (Réseau Optique de SEcurité, or Optical Security Network), is the continuation of a project that began in 2004 with a 500 Km pilot project in Brittany which has grown to over 5,000 Km today. It will enable RTE to secure its electrical transmission network with reliable, fast communications links and resell excess fiber-optic capacity to telecom operators and local authorities through its subsidiary @rteria.

”Alcatel-Lucent quickly got into the mindset that project management requires; all project constraints had to be addressed, and most particularly - in the case of RTE - the operational constraints of a very high-voltage electricity network. Alcatel-Lucent had to be willing to redeploy its resources, adjust its schedules, and change the project execution at any moment, depending on our constraints,” said Luc Desmoulins, RTE Purchasing Director.

“This contract highlights Alcatel-Lucent’s extensive experience meeting all the requirements and deadlines of a major utility player, including managing and deploying a state-of-the-art network that has unique technical challenges,” said Michael Fabian, President of Alcatel-Lucent’s Enterprise and Government Services.

About RTE

RTE is the French electricity transmission system operator. It is a public service company responsible for operating, maintaining and developing the high and extra high voltage network. It guarantees the safety and proper operation of the power system. RTE transports electricity between electricity suppliers (French and European) and consumers, whether they are electricity distributors (EDF and the local distribution companies) or industrial consumers directly connected to the transmission system.

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 adjusted proforma revenues of Euro 18.3 billion in 2006 and is incorporated in , with executive offices located in Paris . [All figures exclude impact of activities transferred to Thales]. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com

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