Alcatel-Lucent and Telstra to Deliver Australia's Largest Business Network - The Telstra Next IP(TM) Network

PARIS, November 19/ -- Telstra Corporation Limited and Alcatel-Lucent (Euronext Paris: ALU) (NYSE: ALU) today announced that they have reached a critical milestone in
the roll-out of Telstra's next generation Internet Protocol (IP) network (the
Telstra Next IP(TM) network), by successfully deploying close to 900,000 IP
DSLAM (ISAM) ports.

A critical piece in the Telstra Next IP(TM) network, Alcatel-Lucent's
ISAM provides higher speed capability of up to 24 Mbps and opens up the
potential for a new range of triple play based services.

Alcatel-Lucent is one of Telstra's strategic suppliers and the end-to-end
network integrator for the first phase of their wireline transformation
project, which has established the largest business network in Australia,
servicing 95 per cent of businesses.

"The Telstra Next IP(TM) network, coupled with Telstra's Next G(TM)
wireless network, creates a platform that will transform communications for
Australian businesses and governments," said Telstra Executive Managing
Director of Network & Technology, Mr Dan Burns. "The Telstra Next IP(TM)
network further demonstrates Telstra's commitment to investment in high-speed
broadband access in Australia under the right regulatory settings."

"This has been an impressive team effort from both Telstra and
Alcatel-Lucent to deploy and integrate close to 900,000 ISAMs ports," says
Frederic Rose, President of Alcatel-Lucent's activities in Europe, Middle
East, Africa and Asia. "The rapid integration of our IP DSLAM into Telstra's
IP network provides them with a future-proof solution offering greater
scalability and access speeds as well as enhanced services."

Alcatel-Lucent remains the uncontested market leader in broadband access
with more than 142 million DSL lines shipped at the end of 2Q 2007. More than
165 customers have adopted the ISAM product family globally - including 80%
of the top 20 DSL operators in the world.

About Telstra

Telstra is Australia's leading telecommunications and information
services company, with one of the best known brands in the country. Telstra
offers a full range of services and competes in all telecommunications
markets throughout Australia, providing 9.8 million Australian fixed line and
9.2 million mobile services. Telstra's network and systems infrastructure
underpins the carriage and termination of the majority of Australia's
domestic and international voice and data telephony traffic. Telstra owns 50%
of FOXTEL®, and its international businesses include CSL New World Mobility
Group, Hong Kong's leading mobile operator, TelstraClear Limited, the second
largest full service carrier in New Zealand and REACH Ltd, a provider of
global connectivity and international voice and satellite services, as well
as SouFun Holdings Limited, a leading real estate and home furnishings
website in China. For more information, visit Telstra on the Internet:

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:

Alcatel-Lucent Press Contacts

Regine Coqueran
Tel: +33-(0)1-40-76-49-24

Mark Burnworth
Tel: +33-(0)1-40-76-50-84

Source: Alcatel-Lucent

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