By Alcatel-Lucent Press Release

Paris, February 27, 2009 – Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has been awarded a multi-million Euro contract by the Munich-based regional network operator M-net, to deploy the first extensive fiber access network in Munich. In the future, additional Bavarian cities will be connected to M-net's high-speed access network that consists of a mixed fiber-to-the-building (FTTB)/fiber-to-the-home (FTTH) architecture.

Alcatel-Lucent will begin installing in March 2009. According to the current expansion schedule, the Munich-based network is set to become the largest and most modern optical access network in Germany. Initially, it will support data rates of up to 100 Mbps; even higher speeds would be possible in the future. The network is thus ready to support future services such as IPTV. In addition to high-speed Internet access and telephony, M-net intends to provide cable TV services over its fiber infrastructure as well.

“Thanks to this future-ready access network, we will be able to provide our customers with the most innovative and appealing service offerings,” explained Dr. Hans Konle, Managing Director of M-net Telekommunikations GmbH. “Optical fiber is capable of delivering bandwidths that copper wire simply cannot match, giving us a significant competitive advantage. In future, speeds of 1 Gbps and more will not be out of reach.”

Alcatel-Lucent's solution includes its GPON (Gigabit Passive Optical Network) access platform – the Alcatel-Lucent 7342 ISAM FTTU – and is complemented by the Alcatel-Lucent 5520 AMS and Alcatel-Lucent 5529 OAD management products. For in-house usage, a range of Alcatel-Lucent optical network termination (ONT) units and residential gateways will be provided. For the FTTB piece, Alcatel-Lucent will rely on existing copper wiring in buildings, using so-called multi-dwelling unit ONTs to translate the optical signal into VDSL2. The use of existing wiring helps reduce costs and will speed up connecting end-users to the network.

Alcatel-Lucent's FTTH and FTTB network architectures support the “Open Access” business model. Thanks to this model, M-net can open up its high-speed access network to additional service providers, thus giving the inhabitants of Munich a variety of telephony, Internet and entertainment offerings to choose from.

“With the largest German GPON project to date, we are helping establish Munich and Augsburg as new centers for broadband,” explained Alf Henryk Wulf, head of Alcatel-Lucent's business in Germany. “Our solution is efficient and economical to maintain, making it a perfect fit for M-net's requirements.”