Alcatel-Lucent VPN Firewall Brick Solution Awarded FIPS 140-2 Validation

Business Wire, Oct 16, 2008

VIENNA, Va. -- LGS, a subsidiary of Alcatel-Lucent (NYSE:ALU) dedicated to serving the U.S. government community, announced today that the Alcatel-Lucent VPN Firewall Brick[R] 50, 150, 700, and 1200 solutions have received the National Institute of Standards and Technology (NIST) Federal Information Processing Standard (FIPS) 140-2 validation. FIPS 140-2 validation is a requirement for any cryptographic product used by U.S. Federal Government organizations in the protection of sensitive or valuable data.

Government users demand extremely secure, certified solutions. The FIPS 140-2 validation program provides users an added layer of confidence that the Alcatel-Lucent VPN Firewall Brick[R] delivers a high degree of security, assurance and dependability, meeting stringent certification requirements. The entire Alcatel-Lucent security portfolio is sold to U.S. government customers through the LGS subsidiary.

The Alcatel-Lucent VPN Firewall Brick[R] solutions are security appliances that integrate application layer inspection, firewall functionality with advanced VPN capabilities for small-office through data-center requirements. The portfolio delivers security for mission-critical IP applications to headquarter employees, branch offices, trading partners, road warriors and customers.

The FIPS 140-2 standard is a joint effort by the National Institute of Standards and Technology (NIST) in the United States, and the Communications Security Establishment Canada (CSEC), under the Canadian government. The Cryptographic Module Validation Program (CMVP), headed by NIST, provides module and algorithm testing for FIPS 140-2, which applies to Federal agencies using validated cryptographic modules to protect sensitive government data in computer and telecommunication systems. FIPS 140-2 provides stringent third-party assurance of security claims on any product containing cryptography that may be purchased by a government agency.

About LGS

LGS, a subsidiary of Alcatel-Lucent, designs and delivers Transformed Communications and R&D-based technology solutions to the U.S. government community. Leveraging the world-class R&D of Alcatel-Lucent Bell Labs, with global reach and expertise, LGS challenges itself to solve the unsolvable and deliver secure, reliable, standards-based solutions to its customers. LGS, is headquartered in Vienna, Va., in the US and with offices in Colorado, Maryland, New Jersey and North Carolina. For more information about LGS visit www.LGSinnovations.com.

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 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

Alcatel-Lucent Press Contacts

[TABLE OMITTED]

Alcatel-Lucent Investor Relations

[TABLE OMITTED]