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Alcatel-Lucent strengthens leadership in optical networking for 2007 according to Ovum RHK


29% yearly growth confirms leadership for the seventh year in a row

Paris, April 2008 — Alcatel-Lucent (Euronext Paris and NYSE: ALU) further reinforces its optical networking leadership by consolidating its #1 position with a 24% market share for the full year 2007, according to Ovum RHK.

“Alcatel-Lucent exceeded our expectation of their performance in optical networking for 2007, breaking the ‘law of big numbers’ to outstrip the growth of the market for the year by registering a 29% growth versus the 24% of the market as a whole,” said Dana Cooperson, Vice President of the Optical Infrastructure at Ovum RHK. “Overall, Alcatel-Lucent grew year over year in the high growth segments, 51% in the multi-reach DWDM segment and 54% in metro WDM, but also in the aggregation space with a 21% increase and in the optical cross-connects segment with a 35% growth.”

The on-going IP network transformation in fixed and mobile networks, across regions and technologies continued to be a key driver of Alcatel-Lucent’s performance, along with the continued momentum in mobile backhaul infrastructure deployment, the growing demand for Ethernet–based services for business customers and business expansion in non-traditional buyer segments including cable MSO, government and enterprises. Furthermore, ROADM-based solutions continued to gain traction, especially in Europe.

“The continued success of our solutions further confirms the role that optical networking has in competitive transformation,” said Romano Valussi, President of Alcatel-Lucent’s Optics activities. “Our performance was directly attributable to addressing market requirements and ability of executing our technology leadership that was further enhanced with innovations to meet video and Triple Play service demands, bandwidth growth and mobile traffic requirements.”

Customer announcements in 2007 included: Belnet (Belgium), the Chinese Government as the sole supplier of China’s largest high-speed e-government backbone network and China Mobile, Globacom (Nigeria), Hanaro Telecom and SK Telecom in Korea, I21 CAT Foundation and Telefónica in Spain, NORDUNet (Nordics), Total E&P Indonesie, Transpower in New Zealand, University of Pittsburg Medical Center (UPMC) in the U.S., T-Mobile Czech (Czech Republic) and the completion of the optical-data network for DANTE in the framework of Europe’s largest research network GÉANT2.

Leveraging its technology and innovation leadership, Alcatel-Lucent is spearheading the transformation to all packet transport. Alcatel-Lucent integrates its experience, leading portfolio and innovative vision into optical and wireless transport solutions that support a broad range of blended service applications - such as triple play, Carrier Ethernet connectivity, Mobile TV and 2G/3G mobile backhaul – exceeding customer needs in the fixed, mobile, submarine and vertical markets.

According to Ovum RHK, Alcatel-Lucent also continues to lead for full year 2007 the aggregation segment with a 23.3% market share, the wavelength division multiplexing (WDM) segment with an 18.4% market share and # 1 position in both metro WDM and multi-reach dense WDM segments, and the bandwidth management segment, including digital and optical cross-connects, with a market share of 32.6%.


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