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Alcatel-Lucent and NEC Win Contract to Supply 20,000km Submarine Cable Network between Southeast Asia and the United States

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Alcatel-Lucent
54 rue la Boetie
Paris, 75008
France



Press release date: April 27, 2007

A Cable Network Spanning Almost Half the Length of the Equator

PARIS, April 27 -- Alcatel-Lucent (Euronext Paris and NYSE: ALU) and NEC Corporation (NEC) (NASDAQ: NIPNY) will jointly deploy the Asia America Gateway (AAG), the first direct Terabit submarine cable network between Southeast Asia and the United States. Spanning over 20,000 km, AAG will link Malaysia to the US via Singapore, Thailand, Brunei, Vietnam, Hong Kong, the Philippines, Guam, Hawaii and the West coast of the US Worth approximately USD 500 million, the contract will deliver a cable network spanning almost half the length of the equator.

The turnkey contract was signed today with a consortium formed by 10 parties including the Government of Brunei, AT&T (USA), Bharti (India), CAT (Thailand), PLDT (Philippines), PT Telkom (Indonesia), Telekom Malaysia (Malaysia), Telstra (Australia), StarHub (Singapore) and VNPT (Vietnam). Alcatel-Lucent and NEC will design, manufacture, install, integrate and commission the full network on a turnkey basis. The project is scheduled to be completed by late 2008.

The new cable network is expected to meet the forecasted explosive growth in bandwidth requirements for new and revolutionary broadband applications such as IP, video, data, and other multimedia services. In addition to providing full network diversity from the conventional cable routes, which are normally connected via North Asia, the AAG will provide a seamless direct link between the US and other Asian countries via one single cable. Furthermore, it will provide connectivity and the ability to be expanded in the future to Australia, India, Africa, and Europe. International communications between the countries involved has been growing rapidly, and is expected to benefit greatly from the enhanced connectivity offered by the new cable network.

"This award further increases the significant track-record we have developed since the beginning of the year and confirms our leadership in the submarine cable industry. AAG will help operators leverage a state-of-the art submarine infrastructure for the end-users benefit," stated Jean Godeluck, President of Alcatel-Lucent's submarine network activity. "We are confident that this new project, rolled out in association with NEC, will further enable voice and data communications, which are vital to support social and economic development."

"NEC's award of the contract for the Asia America Gateway Cable Network confirms our leadership in submarine cable construction and our dedication to building an unmatched network in the Asia Pacific region. NEC is confident that our partnership with Alcatel-Lucent brings leading technology and field-proven expertise, empowering our customers to provide the most advanced and reliable services to the end users," said Masamichi Imai, Executive General Manager of the Broadband Networks Operations Unit at NEC Corporation.

About NEC Corporation

NEC Corporation (NASDAQ: NIPNY) is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers.

NEC delivers tailored solutions in the key fields of computer, networking and electron devices, by integrating its technical strengths in IT and Networks, and by providing advanced semiconductor solutions through NEC Electronics Corporation. The NEC Group employs more than 150,000 people worldwide. For additional information, please visit the NEC home page at: http://www.nec.com

About NEC's Submarine Network Systems

NEC Corporation is a leading supplier of the world's most advanced submarine network systems - platforms vital to the realization of next generation networks. With over 30 years of experience in supplying total submarine cable solutions to customers in Japan and abroad, NEC brings a wealth of technologies, know-how and resources to each new project. In particular, NEC has managed the construction of nearly all of the cable systems available today in Asia and the Asia Pacific region.

NEC Press Contacts

Takehiko Kato,
Tel:+81-(0)3-37-98-65-11,
t-kato@cj.jp.nec.com

Yasuhito Jochi,
Tel:+81-(0)3-37-98-65-11,
y-jochi@bp.jp.nec.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 adjusted proforma revenues of Euro 18.3 billion in 2006 and is incorporated in France, with executive offices located in Paris. [All figures exclude impact of activities transferred to Thales]. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com

Alcatel-Lucent Press Contacts

Regine Coqueran,
Tel: +33(0)1-40-76-49-24,
regine.coqueran@alcatel-lucent.com

Mark Burnworth,
Tel: +33(0)1-40-76-50-84,
mark.burnworth@alcatel-lucent.com

Alcatel-Lucent Investor Relations

Pascal Bantegnie,
Tel: +33(0)1-40-76-52-20,
pascal.bantegnie@alcatel-lucent.com

Maria Alcon,
Tel: +33(0)1-40-76-15-17,
maria.alcon@alcatel-lucent.com

John DeBono,
Tel: +1-908-582-7793,
debono@alcatel-lucent.com

Source: Alcatel-Lucent
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