By Alcatel-Lucent Press Release

Paris – Alcatel-Lucent (Euronext Paris and NYSE: ALU) has signed – in consortium with IT Telecom, Canada's leading marine service provider with worldwide operations – a contract with Antel for a new submarine cable network linking Maldonado, Uruguay, to Las Toninas, Argentina.

With an ultimate design capacity of 3.84 Terabit, this new 250 km-long submarine cable system will provide Antel and Telecom Argentina with greater capacity, faster connectivity and bandwidth availability to support innovative, IP-based services, while lowering the cost of broadband access in the region. With completion expected in the fourth quarter of 2010, it also will provide route diversity for enhanced traffic protection.

“We need to be able to increase the capacity and reliability of our network if we are going to meet our customers expectations for advanced broadband services, while controlling our operational costs and guaranteeing our quality of service,” said Ing Daniel Fuentes, Antel´s Business Manager “Alcatel-Lucent's and IT Telecom's field-proven experience will help us enhance the efficiency and quality of service of our communication infrastructure so that we will be able to provide more advanced services to our customers, enabling them to take advantage of the innovations that are a hallmark of the communications industry.”

“This new submarine cable network will dramatically open up capacity for our customers, enabling us to provide more cost-effective services and a new range of applications that can benefit our country in a variety of ways,” Ing Osvaldo Novoa, Antel´s International Manager added. “Alcatel-Lucent's advanced technology and IT Telecom's professional services will offer us the optimal support to take a new significant step forward in our communications capabilities.”

Under the terms of the contract, Alcatel-Lucent will design, manufacture and commission the submarine cable system, based on its dense wavelength division multiplexing (DWDM) technology and cables. IT Telecom will design the route and perform marine surveys and installation of the submarine cable system.

“In some areas, the benefit of being connected to the global submarine ring has not yet been fully exploited,” said Etienne Lafougère, President of Alcatel-Lucent's submarine network activity. “By meeting the requirements of communications infrastructures in terms of flexibility and scalability, we help our customers to enhance their capacity and deliver a more seamless and reliable service for their customers so that they can enjoy the best communications experience possible.”

“The cooperation with Alcatel-Lucent for the implementation of this important telecommunication infrastructure will ensure that the customer has the most reliable, best quality system available,” said Jacques Levesques, President of IT Telecom. “The extensive experience we gathered in the provision of tailor-made submarine cable services worldwide, allows us to ensure a smooth and reliable implementation of the system.”

This new project further strengthens the long-lasting relationship that Alcatel-Lucent has developed with Antel contributing to the deployment of its transport infrastructure across Latin America.

About Antel

ANTEL is a public company, leader in the Uruguayan telecommunications market. Provides solutions on fixed national and international telephony, mobile voice and 3G network services, and also on the data and Internet services markets. ANTEL also counts within their group three subsidiaries ITC S.A for consultancy services, HG to provide value added IT solutions and ACCESA for contact center solutions to the Uruguayan and international markets.

For more information, visit Antel on the Internet: www.antel.com.uy

About IT International Telecom

IT International Telecom is an innovative company proud to provide its clients with customized solutions that meet their telecommunication, power installation and maintenance requirements. ISO 9000-2001 certified, IT is based in Montreal, Canada with offices in Bridgetown, Barbados and Halifax, Canada. For more information, please visit www.ittelecom.com.

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