Alcatel-Lucent Deploys High-Speed CDMA2000 1xEV-DO Revision A Solution for UMC in Ukraine

Paris, June 19, 2007 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) and Kvazar-Micro, an international IT company providing solutions, products and services in Eastern Europe and the Commonwealth of Independent States (CIS), today announced that they are jointly deploying the first, third-generation (3G) CDMA2000 1xEV-DO Revision A (Rev. A) high-speed wireless network in Ukraine for UMC, a leading Ukrainian mobile operator wholly owned by JSC "MTS" (NYCE: MBT).

The new network, deployed in the 450 MHz spectrum band, will enable UMC to introduce new high-speed 3G mobile data services such as enhanced messaging and audio and video streaming services in major Ukrainian cities. CDMA2000 1xEV-DO Rev. A delivers mobile data speeds and services not possible on UMC's existing GSM/GPRS network, thereby enhancing the wide variety of mobile services already deployed.

"We see a big future for the high-speed data services. The demand of our enterprise and residential customers for these services grows. So we choose the cutting-edge CDMA2000 EV-DO Rev. A technology and Alcatel-Lucent solution architecture. This advanced all-IP solution will afford us deployment flexibility and enhance network performance," said Pavel Pavlovsky, UMC General Director.

As part of this project, Alcatel-Lucent will provide its CDMA Modular Cell 4.0 Compact base stations for the 450 MHz spectrum band, CDMA2000 1xEV-DO Radio Network Controllers (RNC), a base station operation controller and a network element management system. The Alcatel-Lucent 7450 Ethernet Service Switch (ESS) will also be deployed as a Multi-Layer Switch (MLS) offering high availability and quality of service in the IP backhaul network.

Alcatel-Lucent also will provide network design, planning, deployment, operation and maintenance, and personnel training services, while Kvazar-Micro will be responsible for overall network integration. Both companies will collaborate to seamlessly integrate the solution with UMC's existing infrastructure and operations support systems.

"This contract marks the first CDMA2000 1xEV-DO Rev. A deployment in the Ukraine and CIS and is significant as it further demonstrates the benefits of Alcatel-Lucent's merger and our unique ability to address operators' needs in Eastern European countries," said Johan Vanderplaetse, vice president Alcatel-Lucent for the Commonwealth of Independent States. "We are glad to bring mobile broadband data services to regions where it was not previously possible and help UMC transform its business and create new value in delivering useful and personalized communications services to its subscribers."

With the deepest and broadest wireless access portfolio in the industry, Alcatel-Lucent provides solutions for all 3G standards and is well positioned to satisfy the demands of any customer in the CIS countries.

"The fact that we enjoy the confidence of UMC and Alcatel-Lucent, two leaders of one of the most innovative markets, is evidence of the quality l of Kvazar-Micro competence," said Anatoly Veres, general director of Kvazar-Micro in Ukraine. "The 3G networks project deployment has also a great social value. CDMA2000 1xEV-DO Rev. A technology allows the delivery of high-speed Internet access services to a broad audience, including the population of the regions with very low Internet penetration levels."

EV-DO Rev. A is an enhanced version of CDMA2000 1xEV-DO that increases the efficiency, data speeds and capacity of existing CDMA2000 1X and 1xEV-DO networks. EV-DO Rev. A enables users to receive data (forward link) at speeds up to 3.1 Megabits per second (Mbps) and send data (reverse link) at speeds of up to 1.8 Mbps. These increased forward and reverse link data speeds reduce data latency and enable operators to deliver Voice over Internet Protocol (VoIP) and other multimedia services.

About UMC

The OJSC Ukrainian Mobile Communication's (UMC) network covers more than 95 % of Ukraine with 99 % of the population. The company serves more than 20.68 million subscribers. UMC owns licenses for providing mobile (GSM 900/1800, CDMA-450), fixed, toll, and long-distance communication services, and provides international roaming services on five continents. The company reported $1.49 billion revenues in 2006. For more information, visit web-site:

About Kvazar-Micro

Kvazar-Micro is one of the leading suppliers of solutions, products and services in the field of information technology in Eastern Europe and the CIS countries. The company is a subsidiary of SITRONICS (Russia). Kvazar-Micro's activities include management consulting, introduction of corporate control systems, system integration, software development, computer equipment manufacturing, services and training. For more information, visit web-site:

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:

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