Alcatel-Lucent strengthens #2 position in Synergy’s Services Edge Router category and Ovum-RHK’s IP/MPLS Edge category

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that, according to data from two world-leading research firms, it has solidified its #2 position in IP/MPLS during the first quarter of 2007.

According to data from Synergy Research Group, Alcatel-Lucent significantly increased its Services Edge Router market share - growing more than three percentage points quarter-over-quarter to secure 22.2 percent of this category in Q1 2007.

In addition, according to Ovum-RHK, Alcatel-Lucent garnered 20 percent of the IP/MPLS Edge segment during 1Q 2007 - up a percentage point over 4Q’06 and four percentage points ahead of its nearest rival.

“Service Providers are looking to convergence to improve the economics of their network. Solutions that deliver multiple services on a single platform have the capability to improve throughput as well as to enhance the customer experience,” said Dr Ray Mota, Chief Strategist at Synergy Research Group. “The Alcatel-Lucent IP/MPLS platforms have gained worldwide traction in the Services Edge Routing space, experiencing record growth due to their broad adoption for multiservice and Ethernet service edge applications. In 1Q’07 alone, Alcatel-Lucent increased its SER market share by 3.5 percentage points sequentially.”

“In 1Q’07 Alcatel-Lucent reached its highest market share level ever with 20 percent of the IP/MPLS edge segment and 20 percent of the Ethernet Transport and Services segment,” said Mark Seery, Vice-President of Switching and Routing at Ovum-RHK. “Alcatel-Lucent continues to be a company to watch as Cisco and Juniper work through product transitions.”

“The first quarter of 2007 represented our ninth consecutive quarter of revenue growth and we are very pleased with the continuing broad adoption of our IP portfolio on a global basis,” said Basil Alwan, President of the Alcatel-Lucent IP business. “This continued success has resulted in more than 170 customers in over 65 countries now using it to deliver services to their customers. It is a clear endorsement of our solution by wireless, fixed and cable operators who are embarking on network transformation projects in triple play, L2/L3 business services, and mobile carrier backhaul and core network transformation for 3G/4G services.”

Over 170 service providers in more than 65 countries around the world have selected the Alcatel-Lucent IP portfolio as key elements of their IP transformation, including massive, multi-year projects at AT&T, BT and Telstra. Alcatel-Lucent has recently announced new service provider IP transformation deployments at Cable & Wireless, China Mobile, CTM-Macau, Hawaiian Telcom, Indosat, Kordia, Mostelecom, Mobitel, Netia, SaskTel, Shanghai Telecom, Telefónica Latin America, Telecom Malagasy, Vodafone and Wind Telecommunications.