Paris, France and Hamilton, Bermuda – September 16, 2008 — Alcatel-Lucent (Euronext Paris and NYSE: ALU) and Cable Co. Ltd., a Bermudian telecommunications company established by KeyTech Limited, North Rock Communications Ltd., and Transact Limited, announced today the landing of the new Challenger submarine cable network in Bermuda. Challenger will greatly improve the robustness of Bermuda’s telecommunications infrastructure by providing system redundancy. Challenger significantly enhances Bermuda’s ability to support the growing demand for international voice, video, data, and broadband services.

Challenger will span 1,445 km, linking Bermuda to the United States. Designed with an initial capacity of 20 Gbit/s, the new network can be scaled up to 320Gbit/s. Work on the system started earlier this year and operations are expected to begin by early 2009.

“As a carriers’ carrier, we will sell high capacity transmission pipes to enable all Bermuda’s carriers to deliver new and innovative services. This will ensure that Bermuda continues to be an attractive jurisdiction for the global reinsurance and financial industries and enables all Bermuda customers to enjoy more reliable and cost effective services,” said Vicki Coelho, Chairman of the Cable Co. Marketing Committee. “Leveraging Alcatel-Lucent’s expertise and technological lead in the building of submarine networks has ensured a timely implementation in bringing more competition to Bermuda’s international telecommunications market.”

Alcatel-Lucent is overseeing the entire project and providing a turnkey network for the Challenger roll-out, including responsibility for the network design, installation and commissioning. Alcatel-Lucent is deploying its 1620 Light Manager (ML) submarine line terminal, cables and power feed equipment, along with its 1678 Metro Core Connect (MCC).

With more than 480,000 kilometers of submarine cables laid between continents, Alcatel-Lucent has played a key role in the development and implementation of the most important submarine cable networks in operation today.

“Challenger further confirms the need for facilitating global communications and for capacity enhancements that meet end-users’ service demands,” said Etienne Lafougère, President of Alcatel-Lucent’s submarine network activity. “This landing marks a significant new step in the development of Mid Atlantic communications, while strengthening Alcatel-Lucent’s reputation as a reliable partner able to provide every part of a global transport network.”

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About Cable Co. Ltd.

Cable Co. Ltd. is a Bermudian telecommunications company established by KeyTech Limited, North Rock Communications Ltd., and Transact Limited. On December 17, 2007 Cable Co. Ltd. received its Class A license to build and operate the Challenger cable system. Challenger, a 1400 kilometer, seamless end-to-end network with an initial capacity of 20 Gbit/s, offers Bermudian customers system redundancy and supplier diversity in international cable facilities. Cable Co. plans to provide wholesale services to all licensed carriers on an open and non-discriminatory basis.

Cable Co. Press Contact
Vicki Coelho Tel: +1441-542-2260
vcoelho@challenger.bm

About Alcatel-Lucent
Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions that enable service providers, enterprise 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
Régine Coqueran Tel: + 33 (0)1 40 76 49 24 regine.coqueran@alcatel-lucent.com
Mark Burnworth Tel: + 32 3 240 3881 mark.burnworth@alcatel-lucent.com

Alcatel-Lucent Investor Relations
Rémi Thomas Tel: + 33 (0)1 40 76 50 61 remi.thomas@alcatel-lucent.com

Tom Bevilacqua Tel: + 1908-582-7998 bevilacqua@alcatel-lucent.com

Tony Lucido Tel: + 33 (0)1 40 76 49 80 alucido@alcatel-lucent.com

Don Sweeney Tel: + 1 908 582 6153 dsweeney@alcatel-lucent.com