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East African Consortium signs USD 79 Million contract with Alcatel-Lucent to deploy 4,900 km submarine cable network between Kenya and UAE

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Paris, December, 11 2007 — Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced the signature of a turnkey contract for a 4,900 km submarine cable network with The East Africa Marine System Ltd (TEAMS Ltd.) consortium – including the Government of Kenya and Etisalat (Emirates Telecom Corporation) of the United Arab Emirates (UAE). The TEAMS network will connect the port city of Mombasa in Kenya with the port of Fujairah in the UAE offering the required optical connectivity to bring broadband to all users and positioning Kenya as a new communication hub. Network installation is scheduled by the end of the first quarter 2009.

Designed with an ultimate capacity of 640 Gbit/s, the TEAMS submarine cable network will dramatically increase the regional communication capabilities and support new high-quality broadband services, such as free Internet for schools, and Ethernet-based services to further bolster social and economic development.

“With Alcatel-Lucent’s cable solution, we will bring down the cost of Internet connectivity and international calls,” said Dr. Ndemo, Information Ministry Permanent Secretary of Kenya. “As an important economic player in East Africa, such high speed communications links will support the business community’s investment in outsourcing services, which are becoming increasingly popular in Kenya”.

On this occasion, the Chairman of Etisalat Mr. Mohd Hassan Omran said: “Technology brings significant and proven benefits to the communities and economies in which it serves. By deploying the first direct connection from East Africa to the world, we are helping to close the digital divide between nations. We believe that this project will have far reaching impact on the continent that will be felt for decades to come.”

“This project is a new milestone in the development of the Eastern African communication infrastructures,” stated Jean Godeluck, President of Alcatel-Lucent’s submarine network activities. “Our submarine solutions offer the flexibly and reliability our customers demand to support the cost-effective delivery of innovative services. This contract is another significant demonstration of our strong leadership in submarine network solutions.”

The Alcatel-Lucent managed solution will be based on its 1620 Light Manager next-generation DWDM submarine platform, and will also include cable and submarine repeaters. As part of the turnkey contract, Alcatel-Lucent will also deploy its deploy its 1678 Metro Core Connect (MCC) in the landing stations located in Mombasa and Fujairah. The Alcatel-Lucent 1350 management system will supervise all the equipment supplied. A comprehensive suite of professional services, including project management, engineering, marine operation, and installation testing and commissioning, will be also part of this turnkey project.

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 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 adjusted proforma revenues of Euro 18.3 billion in 2006 and is incorporated in France, with executive offices located in Paris. [All figures exclude impact of activities 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