KEY NUMBERS FOR THE SECOND QUARTER 2009 • Revenues of Euro 3.905 billion, down 4.8% year-over-year, up 8.5% sequentially • Adjusted2 gross profit of Euro 1.293 billion or 33.1% of revenues • Adjusted2 operating income1 of Euro (62) million or (1.6)% of revenues • Reported net income (group share) of Euro 14 million or Euro 0.01 per share, including one time items • Operating cash flow3 of Euro (287) million • Net (debt)/cash of Euro 28 million as of June 30, 2009 • Full-year 2009 guidance to be around break-even at the adjusted2 operating income1 level reiterated


• Optics impacted by terrestrial: Revenues for the Optics division were Euro 728 million, a 6.2% decline from the year ago quarter, impacted by the current weakness of the terrestrial market, particularly in long haul D-WDM. Optical Multi Service Nodes (OMSN) proved more resilient thanks to metro aggregation. Wireless transmission also showed better resilience due to investments in mobile backhauling. Finally, submarine networks enjoyed another quarter of strong double-digit growth. This quarter, our next generation packet optical platform (1850 TSS) was selected by NTT DoCoMo to build the mobile backhaul for its LTE service.


Ben Verwaayen, CEO, commented:

“Overall, I am pleased with the progress we have made this quarter. We announced a major co-sourcing/joint go-to-market agreement with HP. We closed the Thales transaction. Customer desire to partner with Alcatel-Lucent for next generation solutions continues to grow.”

“Operationally, we are seeing positive trends in our top-line, gross margin and operating expenses.”

“Looking forward, market conditions remain difficult and operators continue to be selective about their investments. We reiterate our view that our addressable market should be down between 8% and 12% at constant currency in 2009. As we look forward to the second half, we expect to achieve our target of an adjusted operating income around breakeven through further improvement in our margins and expense structure.”