Alcatel-Lucent supports Deutsche Telekom’s “T-City” initiative as exclusive premium partner

Paris, December 20, 2006 – Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced it is supporting Deutsche Telekom’s “T-City“ competition as an exclusive premium partner. Under the terms of a five-year contract concluded at the end of November, Alcatel-Lucent will support Deutsche Telekom in the development and introduction of innovative integrated telecommunication solutions.



Alcatel-Lucent will also make its expertise in the development and introduction of new services available for the “T-City” program. Alcatel-Lucent has found that close and direct cooperation between end-users, service providers and solution suppliers considerably accelerates the development and implementation of new solutions. Thus the citizens, local authorities, organizations and enterprises of the future “T-City“ will find their service needs met with an unprecedented “quality of experience”.



A total of 52 cities entered the “T-City” competition. The winning concept will be realized -- with regards to telecommunications solutions and applications – by Deutsche Telekom, Alcatel-Lucent as the Premium partner and –- if needed –- additional non-premium partners. The participants share the expectation that an advanced technical infrastructure, the applications running on it and the degree of networking among municipal institutions will provide a basis for a sustained increase in the quality of life for their citizens.



Of the 52 cities which participated in the initial round of the competition, an independent jury selected ten cities to go forward to the final round: Arnsberg, Coburg, Frankfurt (Oder), Friedrichshafen, Görlitz, Kamp-Lintfort, Kaiserslautern, Neuruppin, Osterholz-Scharmbeck and Schwäbisch-Hall. The winner will be the city that has made the best municipal applicationto use the modern telecommunications technology to meet the specific tasks and challenges a 21st century community faces (e.g. the interaction between citizens and the municipal administration). The future T-City will act as a role model for other cities, and will be selected in February 2007.



Deutsche Telekom will implement the innovative ideas of the future T-City jointly with Alcatel-Lucent as its premium partner in defined product and cooperative areas. Deutsche Telekom may recruit additional partners to implement other areas, which are not covered by the premium partnership with Alcatel-Lucent.



“We are pleased with having won Alcatel-Lucent as a strong technology and premium partner for a quite demanding T-City project. We are looking forward to use our joint know-how for giving birth to an exemplary, networked city of the future”,Joerg Bollow, project leader T-City, Deutsche Telekom AG.



Hans-Burghardt Ziermann, an executive with Alcatel-Lucent´s operations in Germany, is a member of the 11-strong jury, which selected the ten finalists at the end of November. “This exclusive partnership in the “T-City“ project represents a continuation of our long-lasting and successful partnership with Deutsche Telekom”, says Hans-Burghardt Ziermann. "We are happy to be able to help a city become a more attractive place for living and as an industrial location thanks to a modern telecommunications network.“

About Deutsche Telekom’s “T-City“Project

The goal of the competition is to highlight the potential of new, innovative and broadband information and communication technologies for business, public facilities and citizens in a community. All communities with 25,000-100,000 inhabitants were eligible for entry. The German Association of Towns and Municipalities (DStGB) provided support as a partner of the project. The winner of the competition and therefore the “T-City” will be selected in February 2007.Further information on the competition can be found at external link www.t-city.de

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 79,000 employees and 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 proforma combined revenues of Euro 18.6 billion in 2005, and is incorporated in France, with executive offices located in Paris. [All figures exclude impact of activities to be transferred to Thales]. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com

Contact the Alcatel-Lucent Press Office: press@alcatel-lucent.com

Contact Information

Harald Kettenbach

Alcatel-Lucent

Contact via E-mail