WFN Strategies (www.wfnstrategies.com) is pleased to announce its exhibiting at Offshore Communications Conference 2008 on 5-6 November at Grand Plaza Hotel in Houston, Texas USA.

Highlighting projects in Australia, Caspian, Gulf of Mexico, North Sea and West Africa, WFN Strategies accomplishes telecoms engineering involving submarine and terrestrial optical cable, microwave, mobile, broadband wireless/WiMAX, satellite and other RF technologies for Oil & Gas clients.

WFN Strategies is the publisher of Submarine Telecoms Forum magazine (www.subtelforum.com), and has been selected as SubOptic 2010 Media Partner and Programme Committee Member, which will be held in Yokohama, Japan on 11-14 May 2010. Submarine Telecoms Forum is free to its 11,000+ readers representing 85 countries, and is, quite simply, the Voice of the Industry and the go-to publication for quality insight.

By Ocean Specialists Press Release

October 30th, 2008. Stuart, Florida and Boston, Massachusetts, USA.

Ocean Specialists, Inc. (OSI) and T Soja & Associates, Inc. (TSA) announced today that they are merging to pursue a broad range of new business opportunities in the submarine cable telecom and offshore energy industries. The deal fully integrates and leverages the technical strengths, affiliations and resources of both organizations under the OSI banner.

OSI and TSA have collaborated for over seven years on a number of projects, functioning as analysts, consultants, project developers, project managers and network owners. Current projects include submarine telecom cable network builds in emerging market regions and oil & gas network applications, several of which are already nearing first phase completion of long-range engagements.

The combined team will provide customers in the submarine telecommunications cable and offshore oil & gas markets with a broad range of services, including network demand analysis, feasibility studies and business opportunity modeling, as well as network design, procurement and construction management, focused on full-service infrastructure development and implementation. The OSI-TSA merger gives network owners the ability to work with a well-proven and integrated group of specialists with a broad range of skills, providing business case analysis through to commissioning, operation and maintenance services.

TSA contributes globally recognized capabilities in business modeling and market analysis to the submarine telecommunications and oil & gas markets. TSA has participated in the development of over 80 major telecommunications networks and systems worldwide since 1997.

“OSI’s and TSA’s combined breadth of experience across these two very dynamic industries – telecom and broadband oil & gas communications networks – is unsurpassed in the industry. In the past 90 days we have collaborated on six projects spanning 3 continents. We have been tapped for four major follow-on contracts and have been invited to negotiate terms on several other new projects. This is a very strong vote of confidence in our skills and that our strategy in on target for today’s environment,” said Tom Soja, Founder & President of TSA.

TSA also publishes the TSA Submarine Cable NewsFeed^TM- the industry’s first and only subscriber-paid daily news service – providing industry news to leaders in the submarine cable markets via electronic publication. Now in its 12th year of publication, the TSA NewsFeed^TM has a long history of providing market intelligence, insights and breaking developments in commercial telecom, oil & gas fiber networks, offshore energy cables, power cables and fiber communications-related pipeline projects.

Since 2001, OSI has served the offshore oil and gas, submarine telecommunication and pipeline markets with business planning, network design and subsea technology development, engineering, procurement and construction project management. OSI has supported system development projects in Africa, Europe, throughout the Americas, and in the Asia Pacific region. Drawing on the resources of its sister company, CSA International, located in the same purpose-built global headquarters in Stuart, Florida, OSI is also able to provide full-service GIS route design and MakaiPlan^TM engineering, as well as environmental assessment, system permitting and crossing agreements.

“We are very pleased to be joining forces with TSA.” Stated Jim Byous, President of OSI. “The combined capabilities of the new organization offer an integrated range of services and skills unmatched in the submarine telecommunications industry. The increasing complexity of network developments has caused owners to contract with several different consulting and engineering groups throughout the life cycle of a project. Our combined capabilities will allow our customers to substantially increase the continuity and efficiency in the development of their offshore and undersea communications projects.”

OSI also provides corporate advisory and M&A services to companies in the ocean industry. OSI looks to expand on that activity by leveraging TSA’s skills and experience in strategic market analysis, actionable intelligence reporting and financial modeling in serving those clients and portfolio companies. Over the coming weeks, OSI will be rolling out a series of new initiatives in the marketplace and revealing further details regarding its activities and offerings to clients worldwide.

By BT Press Release

BT announces that François Barrault resigned as Chief Executive, BT Global Services and as a BT Group plc Board director on October 30th. He has been replaced by Hanif Lalani, currently Group Finance Director.

François Barrault joined BT in 2004 as head of BT International with responsibility for BT Global Services’ non-UK operations. He became Chief Executive of BT Global Services and a BT Group plc board member in April 2007.

Ian Livingston, Chief Executive of BT commented:

“BT Global Services, under François’ leadership, has established itself as a world leader in providing networked IT services, helping customers in more than 170 countries make the most of globalisation.

“BT Global Services has won many key accounts with major global corporations around the world and delivered much improved customer service. Continuing strong revenue growth shows the tremendous potential of this market, and demonstrates how important the services we provide are to our customers around the world.

“I would like to thank François, and wish him well for the future.

“Hanif will build on these foundations, and take Global Services to the next stage of its development, delivering improved profitability, margins and return on capital for the group and outstanding service for our customers”.

Hanif Lalani has a strong track record of transforming businesses having held a series of senior posts in BT. As Chief Executive of BT Northern Ireland he increased revenues, profit and margins while substantially reducing costs over three years. He went on to become Chief Financial Officer of BT Wholesale before joining the board as Group Finance Director in 2005. In each these roles he has worked closely with major customers and suppliers.

Hanif said

“BT Global Services, led by François, has achieved recognition around the world for the quality of the services it delivers, and will remain an engine of growth for the group. I am committed to improving profitability and returns for the division while continuing to win new business. I am extremely proud of BT’s global presence, and of the contribution we are making to the countries in which we work.”

The management of BT Global Services will be further strengthened by the appointment of Ray Leclercq as Chief Financial Officer reporting to Hanif Lalani. Ray is currently Chief Financial Officer of Openreach where he has delivered cost savings and played a key role in improving operational efficiency.

An announcement regarding a new Group Finance Director will be made in due course.

PARIS, October 30/PRNewswire-FirstCall/ –

Key Highlights for the Quarter

- Revenues of Euro 4.065 Billion, Down 0.9% Sequentially

- Adjusted(2) Gross Profit of Euro 1.320 Billion or 32.5% of Revenues
(33.0% excl. one time item)

- Adjusted(2) Operating Income(1) of Euro 40 Million or 1.0% of Revenues

- Adjusted(2) Net Income (Group Share) of Euro 41 Million or Euro 0.02
per Diluted Share

- Reported Net Loss (Group Share) of Euro (40) Million or Euro (0.02) per
Diluted Share

- Net Debt of Euro 600 Million at September 30, 2008

- Funded Status of Pensions and OPEB Shows Surplus of Euro 2.997 Billion
at September 30, 2008
Note: 3rd quarter 2008 reported and adjusted income statement is enclosed in Annex, please visit http://www1.alcatel-lucent.com/3q2008/pdf/annex_E.pdf

Alcatel-Lucent’s Board of Directors (Euronext Paris and NYSE: ALU) reviewed and approved reported results for the third quarter 2008.

During the quarter, revenues declined 6.6% year-over-year and decreased 0.9% sequentially to Euro 4.065 billion. At constant exchange rate, revenues declined 2.2% year-over-year and 2.9% sequentially. At constant exchange rate and on a year-over-year basis, Carrier revenues declined 9.4%, Enterprise revenues grew 6.3% and Services revenues grew 16.6%. The adjusted(2) gross margin was 32.5% of revenues, or 33.0% excluding a currency hedging loss of Euro 23 million. Adjusted operating expenses declined 9.6% year-over-year and 4.5% sequentially, leading to an adjusted(2) operating income(1) of Euro 40 million or 1.0% of revenues. Adjusted(2) net income was Euro 41 million or Euro 0.02 per diluted share, including a one-time income of Euro 63 million pre tax and of Euro 38 million after tax resulting from the amendment of the post retirement healthcare plan.

Executive commentary

Ben Verwaayen, CEO commented: “I am delighted to have joined Alcatel-Lucent, a company which has the talent, technologies and customer base to grow profitably in its market.

First, let me state that we are in good shape from a cash standpoint. We achieved a positive cash flow from operating activities this quarter through the reduction of our operating working capital requirements. The funded status of our pensions and other post retirement benefits remains materially positive with a prudent asset allocation. With gross cash on hand and marketable securities of Euro 4.46 billion and less than Euro 1 billion worth of bond debt maturing in the next 12 months, we are adequately funded.

Second, we met our revenue guidance in a more challenging macroeconomic environment. In addition to the ongoing CDMA decline, we saw a reduction in spending by certain customers in developed markets, especially in fixed access and terrestrial optics. This was partly offset, however, by the strong performance of certain carrier activities, including W-CDMA, NGN and submarine networks. In addition, we continued to grow our Enterprise business at a healthy rate and saw accelerated growth in Services.

Having said that, our profitability remains unsatisfactory. The gross margin came in at the lower end of our expectations in the third quarter, reflecting an adverse shift in both our product and geographic mixes. In the carrier space, this was coupled to a declining top-line and led to an adjusted operating loss which calls for a set of actions that I will be describing over the coming period. I would nonetheless point to the high single-digit operating margin in the Enterprise segment and the double-digit operating margin in Services.”

Market and outlook

In its outlook for the third quarter, Alcatel-Lucent was already prudent in its view about the telecommunications market due to a weakening macroeconomic environment. Today, the company continues to anticipate that the global telecommunications equipment and related services market should be flat in 2008 at constant currency.

Alcatel-Lucent reiterates that its full year 2008 revenue, expressed in current Euro rate, should be down in the low to mid single-digit range. The company continues to expect an adjusted gross margin in the mid thirties and an adjusted operating margin in the low to mid single-digit range in percentage of revenue in full year 2008.

Based on its outlook for the fourth quarter, the company continues to expect its year-end net debt to be materially reduced compared to the level at the end of June 2008.

THALES

Alcatel-Lucent believes that it is possible to maintain its ongoing partnerships with Thales without necessarily having any capital tie. The company is currently reviewing all options regarding its 20.8% stake in Thales, including a potential sale, in the best interest of its shareholders.

Reported results

For the third quarter 2008, Alcatel-Lucent’s reported revenues amounted to Euro 4,065 million. The reported gross profit was Euro 1,319 million. Reported operating loss(1) was Euro (85) million, including the negative impact from Purchase Price Allocation (PPA) entries of Euro (125) million. For the quarter, reported net loss (group share) was Euro (40) million or Euro (0.02) per diluted share (USD (0.03) per ADS), including the negative after tax impact from PPA entries of Euro (81) million.

Adjusted results

In addition to the reported results, Alcatel-Lucent is providing adjusted results in order to provide meaningful comparable information, which exclude the main non-cash impacts from PPA entries in relation to the Lucent business combination. These non-cash impacts are very material and non-recurring due to the different amortization periods depending on the nature of the adjustments, as detailed in the annex. Reported figures are not comparable with our main competitors and many business players who have not undergone any similar business combinations as the Alcatel and Lucent one.

For the third quarter 2008, Alcatel-Lucent generated revenues of Euro 4,065 million, compared to Euro 4,350 million in the year-ago quarter, a decrease of 6.6%. The adjusted(2) gross profit was Euro 1,320 million or 32.5% of revenues, compared to an adjusted(2) gross profit of EUR 1,486 million or 34.2% of revenues in the year ago-quarter. Adjusted(2) operating income(1) was Euro 40 million, 1.0% of revenues, compared with an adjusted(2) operating profit of Euro 70 million or 1.6% of revenues in the year-ago quarter. Adjusted(2) net income (group share) was Euro 41 million or Euro 0.02 per diluted share (USD 0.03 per ADS), compared to an adjusted(2) net loss of Euro (258) million or Euro (0.11) per share (USD (0.16) per ADS) in the year-ago quarter.

Balance sheet and pension status

The net (debt)/cash position was Euro (600) million as of September 30, 2008, compared with Euro (415) million as of June 30, 2008. The increase in net debt of Euro (185) million primarily reflects the low level of operating profitability this quarter, the cash outflow related to restructuring plans (Euro (113) million), a still high contribution to pensions (Euro (98) million) and the impact of currency translation on our net debt position (Euro (68) million) partially offset by a Euro 128 million reduction in total working capital requirements.

The funded status of pensions and Other Post Employment Benefits (OPEB) amounted to a surplus of Euro 2.997 billion as of September 30, 2008, up from Euro 2.848 billion as of June 30, 2008. This increase essentially reflects a favourable currency translation impact on the funded status of US plans, which was stable sequentially in USD terms. The funded status of our non US plans decreased slightly.

Key figures

*E/ADS calculated using the US Federal Reserve Bank of New York noon Euro/dollar buying rate of USD 1.4081 as of September 30 2008, USD 1.4219 as of September 28 2007 and USD 1.5748 as of June 30 2008.

Business Commentary

Please note that all the following business comments are based on a year-over-year comparison at constant exchange rate, unless otherwise specified.

Carrier Operating Segment

For the third quarter 2008, revenues for the Carrier operating segment were Euro 2,734 million compared to Euro 3,142 million in the year-ago quarter, a 13.0% decrease at current exchange rate and a 9.4% decrease at constant rate. The segment posted an adjusted(2) operating(1) loss of Euro (91) million or an operating margin of (3.3) % compared to a profit of Euro 22 million or a margin of 0.7% in the year ago period.
Key highlights:

- Fixed access revenue decreased at a strong double-digit
rate. The ongoing decline in new subscribers to copper-based broadband
access, coupled with a rapidly deteriorating economic environment led
certain customers in North America and Europe to reduce their capital
expenditure plans for fixed access, thus impacting both our DSL and
Digital Loop Carrier (DLC) activities. Alcatel-Lucent shipped 6.1
million DSL ports in the quarter, down 23% from the year-ago quarter
and 21% sequentially. On the other hand, revenue from FTTH solutions
more than doubled this quarter, taking the year-to-date growth to more
than 60%. Alcatel-Lucent further reinforced its leadership position in
next generation broadband access both in FTTN, where it was selected by
KPN as its exclusive supplier and in FTTH where it announced several
contract wins, including EPB in US, Telecom Malaysia and Neuf Cegetel
in France as part of a social housing project in Paris.

- In data networking, revenue from its IP/MPLS service routers
enjoyed solid growth both year over year and sequentially, shipping to
more than 20 new customers, taking the total to more than 250 customers
to date. Alcatel-Lucent announced new wins with Eircom (Ireland), Bezeq
(Israel), EPB Telecom (USA) and Telecom Malaysia. The company’s
solution for mobile backhauling (7705 Service Aggregation Router), is
also gaining traction with more than 20 customers and 20 additional
trials. The ATM switching business continued on its structural decline
path.

- Optical networking grew slightly this quarter, a contrast with the
double-digit growth rate reported in the first half, reflecting a
slowdown in the terrestrial optical networking market. Submarine
networks and microwave transmission activities grew at a strong
double-digit rate.

- In mobile networks, GSM revenue declined this quarter, due to the
temporary freeze on networks expansion in China during the Olympics.
W-CDMA revenue doubled this quarter, as it continued to benefit from a
strong ramp-up in revenues in France, the US and Korea. Alcatel-Lucent
won several new W-CDMA customers in the third quarter including Vodacom
in South Africa and BSNL/ITI in India. Year to date, the company has
been selected by 11 new W-CDMA customers, taking the total to more than
50. CDMA revenues declined materially year-over-year but recovered
sequentially, as the company began shipments to a Chinese customer.

- LTE: in the past months, the roadmaps as well as the technical and
business requirements of key operators around the world have
significantly evolved. Recognizing the diversity of the market,
Alcatel-Lucent and NEC are further optimizing the scope and format of
their technical collaboration in the LTE radio access space. The two
companies are currently considering the opportunity to focus their
technical cooperation on selected parts of the LTE radio access
platform, in the form of specific joint development agreements as
appropriate. Alcatel-Lucent is fully committed to providing its
customers with a superior end-to-end LTE solution. The company has
already accelerated its global LTE development program in the past two
quarters, and will continue to do so to meet the roadmap and
requirements of its key customers around the globe.

- The company’s core switching activities declined moderately year over
year, as the decline in legacy TDM voice was almost entirely offset by
the strong, double-digit growth in NGN.

- Applications had a softer quarter due to a slowdown in legacy Messaging
and IN (Intelligent Networks) activities. Revenue from Subscriber Data
Management and Multimedia applications continued to enjoy strong
double-digit growth driven by Asia and the Americas.
Enterprise Operating Segment

For the third quarter 2008, revenues for the Enterprise operating segment were Euro 388 million compared to Euro 380 million in the year-ago quarter, an increase of 2.2% at current exchange rate and of 6.3% at constant rate. Adjusted(2) operating income(1) was Euro 29 million, or 7.5% of revenues, flat from last year.
Key highlights:

- Enterprise Solutions grew in the mid single-digit range.
This was driven by Data networking which enjoyed its seventh
consecutive quarter of double-digit growth as well as the sustained
momentum in sales of voice solutions to large enterprises, more than
offsetting the slowdown in demand from small and medium businesses.

- Genesys, the contact centre software activity, grew at a
high single-digit rate this quarter versus a double-digit rate in the
first half, due to a slowdown in professional services.

- From a geographic standpoint, the segment saw double-digit growth in
both North America and Latin America and low-single digit growth in
both Europe and Asia.

- The adjusted operating margin of the Enterprise segment was stable both
year-over-year and sequentially, at a rather high level.

Services Operating Segment

For the third quarter 2008, revenues for the Services operating segment were Euro 870 million compared to Euro 776 million in the year-ago quarter, an increase of 12.1% at current exchange rate and of 16.6% at constant rate. Adjusted(2) operating income(1) was Euro 87 million or 10.0% of revenues compared to Euro 40 million or 5.2% of revenues in the year ago quarter.
Key highlights:

- Network operations enjoyed accelerated growth this quarter,
both in revenues and orders due to the ramp-up of some of the large
contract wins announced since the start of the year.

- Network integration grew in the high teens this quarter, a
somewhat slower growth than in the first half, due to the slowdown in
the part of the business which is attached to the sale of carrier
products. Alcatel-Lucent nevertheless continued to enjoy very strong
growth in complex network design, network optimisation and network
transformation projects.

- Growth in Professional services – which include the integration of
software applications either from Alcatel-Lucent or third parties -
accelerated to the high teens this quarter compared to the high
single-digit growth achieved in the first half, driven by IPTV and OSS
integration.

- Finally, Maintenance returned to double-digit growth this quarter,
driven both by multivendor maintenance and legacy maintenance.

- The segment reached double-digit operating profitability this quarter,
due to the strong year-over-year increase in revenue, a good mix and an
improvement in the gross margin in all four activities.

Alcatel-Lucent will host a press and analyst conference at its headquarters at 1:00 p.m. CET which can be followed through audio webcast at http://www.alcatel-lucent.com/3q2008

Notes

All adjusted figures are unaudited.

1- Operating income (loss) is the Income (loss) from operating activities before restructuring costs, impairment of assets, gain (loss) on disposals of consolidated entities and post-retirement benefit plan amendment.

2- “Adjusted” refers to the fact that it excludes the main impacts from Lucent’s purchase price allocation (See annex for detailed information).

2009 Upcoming events/ announcements

February 4, 2009 Fourth quarter and full year 2008 results