Alcatel-Lucent introduces new targeted and interactive advertising solution for IPTV networks, helping enhance the TV ad model and enrich the TV viewing experience

Solution leverages IPTV networks to offer a more effective way to target andmeasure advertising; lays the groundwork for multi-screen advertising

Broadband World Forum, Brussels — At the Broadband World Forum Europe 2008 trade show and exhibition today, Alcatel-Lucent (Euronext Paris and NYSE: ALU) is introducing a new advertising delivery solution for IPTV networks that can help enhance the TV ad model by enabling service providers to distribute ads to distinct groups of consumers. Alcatel-Lucent’s Targeted and Interactive IPTV Advertising Solution is designed to increase IPTV revenue by making it possible for advertisers to reach the most attractive potential customers with ads that are more timely and relevant, as well as better measure the effectiveness of their campaigns. The solution also offers a variety of interactivity features that enable consumers to view additional information about products that interest them.

The Targeted and Interactive IPTV Advertising Solution gives IPTV operators the ability to insert ads into TV programs that are aimed at particular communities of interest and even specific households. These ads are delivered using anonymous subscriber profiles based on service usage and demographic data authorized via an “opt in” process and retained in a secure, privacy-protected repository by the service provider. The solution incorporates subscriber data analysis and management capabilities - to support ad targeting - and audience measurement features to precisely analyze the effectiveness and return on investment (ROI) from particular campaigns. Combined, these capabilities will enable service providers to dramatically increase the value and attractiveness of their available ad slots (also known as “inventory”).

“Alcatel-Lucent’s Targeted and Interactive IPTV Advertising Solution is designed to address an important challenge in the advertising world -- knowing whether or not you are reaching your audience,” said Michel Rahier, President of Alcatel-Lucent’s carrier business activities. “This new solution makes it possible for service providers to enable advertisers to reach customers that would have a natural interest in their products, and ensure that subscribers are seeing ads that are relevant to their lifestyles and interests.”

This new solution is a key element of Alcatel-Lucent’s broader initiative to enable service providers to leverage their IP-based networks to enhance and evolve the TV and video viewing experience to make it more compelling for subscribers, while opening new revenue opportunities. Toward this end Alcatel-Lucent is driving the development of smart, IP-based, video-centric networks that offer subscribers a consistent, high-quality, personalized and interactive viewing experience.

The Targeted and Interactive IPTV Advertising Solution also takes advantage of the capabilities of the next generation of Alcatel-Lucent’s industry-leading Triple Play Service Delivery Architecture (TPSDA) – dubbed TPSDA 2.0 – which was also introduced today. TPSDA amplifies and extends the power of service providers’ IP networks by distributing an array of new capabilities - including targeted and linear ad insertion - throughout the network.

“Alcatel-Lucent, the clear leader in IPTV infrastructure, has assembled an end-to-end IPTV advertising proposition that brings the best characteristics of the lucrative online advertising model into triple play networks,” said Jeff Heynen, Directing Analyst, IPTV and Next Gen OSS/BSS at Infonetics. “By building ad targeting and interactive capabilities into their triple play network architecture, service providers gain the advantages of exceptional scale, flexibility and cost-effectiveness, as well as a platform for targeted advertising across multiple screens.”

The key elements in the targeted and interactive IPTV advertising solution are:

* New Targeted Ad Insertion Splicer and Targeted Ad Insertion Agent- deployed in a distributed fashion but operating in tandem - along with novel IPTV channel and ad activity tracking functions, all integrated into our market-leading TPSDA
* 5930 Interactive Media Manager which enables dynamic interactive applications and advertising campaigns
* 8660 Datagridsuite, 8920 Service Quality Manager, and5410 Presence Serverwhich unify subscriber data and measure responses for greater effectiveness of ad content
* Robust advertising ecosystem for IPTV networks featuring a variety of best-in-class third parties.
* World-class professional and integration services

Alcatel-Lucent is a recognized leader in IPTV, with the #1 position in IPTV middleware subscribers (2+ million), TPSDA deployments (55+) and IPTV transformation and integration projects (50+). These transformation projects leverage Alcatel-Lucent’s extensive field deployment experience and lab investments in next generation IP Transformation Centers (IPTCs) to reduce time to market and deliver a superior user experience.

TPSDA is the blueprint architecture to accelerate IP network transformation for delivery of video, voice, data and entertainment services. The architecture leverages Alcatel-Lucent’s industry-leading broadband access, optics, Carrier Ethernet and service-aware IP technologies, and combines them with robust subscriber and network management, security capabilities, and a comprehensive suite of design, deployment and integration services.

For more information on the Targeted and Interactive IPTV Advertising solution, visit: www.alcatel-lucent.com/targetedadvertising

About Alcatel-Lucent
Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions that enable service providers, enterprise 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