Dell’Oro market share results show Alcatel-Lucent’s continued momentum in IP/MPLS Edge routing segment

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that, according to data from Dell’Oro, it has considerably strengthened its quarterly, year-over-year market position in the Service Provider Edge Router market segment. Dell’Oro data shows that in the second half of 2008, Alcatel-Lucent continued to grow in the edge router segment – gaining more than three percentage points to reach 17.6 percent market share - while the other top-three vendors either dropped significantly or were flat.

Alcatel-Lucent continued its momentum in the service provider market with record revenues and strong demand for third generation IP/MPLS service routers. This demand was driven by growth in consumer IPTV and Internet services, increased Internet traffic – particularly video – evolution of mobile core and backhaul networks to IP, and an expanding market for Ethernet and IP VPN services.

“Alcatel-Lucent recorded the largest revenue share gains in the Service Provider Edge Router market during 4Q08,” states the Dell’Oro Group Routers Report 4Q08. “The company recorded record revenue for Service Provider Edge Routers for the third consecutive quarter with especially strong sales in the EMEA region.”

“Alcatel-Lucent’s award winning FP2 silicon and multi-service capabilities differentiates our Service Provider IP/MPLS routing portfolio from other vendors and positions us very well as the market evolves to 40 and 100 gigabit Ethernet,” said Basil Alwan, President of Alcatel-Lucent’s IP activities. “With CAPEX being more focused on networks capable of supporting multiple revenue-generating services during this time of economic uncertainty, Alcatel-Lucent’s IP/MPLS service routing portfolio and the company’s clear vision and strategy is well matched to operators’ requirements.”

The results reflect Alcatel-Lucent’s growing customer base and market adoption of its expanding IP/MPLS portfolio, which has set the industry standard for scalability, quality of service, and high availability. More than 260 service providers in more than 100 countries have selected the Alcatel-Lucent IP/MPLS portfolio.

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