Paris, October 8, 2009 -- Alcatel-Lucent (Euronext Paris and NYSE: ALU) announced today that it has signed a multi-million Euro frame contract with Saudi Telecom, the main telecommunications operator in Saudi Arabia and the biggest Arab operator, to expand, extend and upgrade its existing broadband network to serve an additional two million residential and enterprise customers by the end of 2010. Underserved customers in areas of the Kingdom of Saudi Arabia will now be able to enjoy innovative triple play services such as IPTV and converged communications.

The network upgrade is made possible by the enhanced aggregation and transport features of Alcatel-Lucent's broadband access, IP, optical and services solutions.

"Our strong presence in Saudi Arabia and our long-term history with Saudi Telecom enabled us to understand its network requirements, and work together to provide the best solution in an optimal timeframe," said Vincenzo Nesci, Alcatel-Lucent's Vice President for Middle East and Africa.

Under the agreement, Alcatel-Lucent will provide its packet optical transport solution for DSLAM traffic aggregation and Ethernet business services, along with its DSL and GPON /MSAN technology. The company will also leverage its services expertise in the areas of project management, network analysis, software integration, integration services and technical support services to deliver a true turnkey services solution. This provides better coverage for broadband services and increases the bandwidth for enhanced applications, such as IPTV and other innovative triple play services. 

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About Saudi Telecom
STC is the leading national provider of telecommunication services in the Kingdom of Saudi Arabia, and in the last few years, STC has gone beyond its local borders to the international markets, forming a network of businesses and investments in a number of GCC countries, Asia & Africa. The company has now foot print in Kuwait, India, Indonesia, Malaysia, Turkey and South Africa which has enabled STC to serve a greater number of its customers which the company seeks to increase internationally through studying and evaluation of potential investment opportunities in the future in line with its FORWARD Strategy.

About Alcatel-Lucent
Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted partner of service providers, enterprises and governments worldwide, providing solutions to deliver voice, data and video communication services to end-users. A leader in fixed, mobile and converged broadband networking, IP technologies, applications and services, Alcatel-Lucent leverages the unrivalled technical and scientific expertise of Bell Labs, one of the largest innovation powerhouses in the communications industry. With operations in more than 130 countries and the most experienced global services organization in the industry, Alcatel-Lucent is a local partner with a global reach. Alcatel-Lucent achieved revenues of Euro 16.98 billion in 2008 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 

© Press Release 2009