By PRNewswire-FirstCall

Building on Innovation to Support Leadership

in IP DSLAM and VDSL

PARIS, May 23/PRNewswire-FirstCall/ -- Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that, following the publication of

the Dell'Oro 1Q'08 access report*, the company remains the worldwide leader in DSL with 6.6 million DSL lines shipped in 1Q'08. With a cumulative market share in

DSL port shipments of more than 40%, more than three times that of its nearest competitor, and a worldwide installed base of 166 million DSL lines, Alcatel-Lucent

continues to lead the fixed broadband access market.

According to Dell'Oro, Alcatel-Lucent leads the IP digital subscriber line access multiplexer (IP

DSLAM) market with a Q1 2008 market share of 33%. Alcatel-Lucent has also seen a rapid uptake of its very high-speed DSL (VDSL) shipments in 1Q'08, surpassing a

47% market share in terms of ports shipped - an all-time high, and more than threefold the number of shipments of Alcatel-Lucent's nearest competitor in this

field.

Alcatel-Lucent is maintaining its regional leadership in North America, EMEA and Rest of the World, while consolidating its number-2 position in Asia

Pacific.

Alcatel-Lucent also confirmed its technological leadership in DSL by launching its Smart DSL solution that targets operators who look at deploying

higher-speed bandwidth services over asymmetric DSL (ADSL) and VDSL lines. The Smart DSL technology allows operators to guarantee DSL line stability at bit rates

that are typically as much as 30% higher than traditional methods, building on Alcatel-Lucent's Artificial Noise and Virtual Noise innovations.

"Our

leadership in IP DSLAMs and VDSL shipments - as well as our ongoing DSL innovations - demonstrate that Alcatel-Lucent continues to be the leading vendor in fixed

broadband access," says Luis Martinez Amago, President of Alcatel-Lucent's fixed access activities. "With one out of three fixed broadband customers around the

world served through an access network provided by Alcatel-Lucent, we are committed to support our customers' network transformation projects."

Alcatel-

Lucent's leadership in fixed broadband access builds to a large extent on the Intelligent Services Access Manager (ISAM) family, an IP access platform that

supports a flexible mix of future-proof access technologies (xDSL, GPON, point-to-point fiber) and a variety of network topologies (central office as well as remote

architectures). More than 185 service providers around the world have already selected the ISAM platform.

* DSL Access Concentrators (Single Service +

Multiservice) - Worldwide & Regions (1Q08). (Dell'Oro - May 13th, 2008)

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU)

provides solutions that enable service providers, enterprise 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 operations in more than 130 countries, Alcatel-Lucent is a local partner wit

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 revenues of Euro 17.8 billion in 2007 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

Source: Alcatel-Lucent

Alcatel-Lucent Press Contacts:

Regine Coqueran, Tel: +33(0)1-40-76-49-24, This email address is being protected from spambots. You need JavaScript enabled to view it.; Stephane Lapeyrade, Tel: +33(0)1-40-76-12-74, This email address is being protected from spambots. You need JavaScript enabled to view it.;

Alcatel-Lucent Investor Relations: Remi Thomas, Tel: +33(0)1-40-76-50-61, This email address is being protected from spambots. You need JavaScript enabled to view it.; John DeBono, Tel: +1-908-582-7793, debono@alcatel-

lucent.com; Tony Lucido, Tel: +33(0)1-40-76-49-80, This email address is being protected from spambots. You need JavaScript enabled to view it.; Don Sweeney, Tel: +1-908-582-6153, This email address is being protected from spambots. You need JavaScript enabled to view it.