DECEMBER 14, 2006 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that Hawaiian Telcom, the incumbent local exchange carrier (ILEC) in Hawaii, has selected Alcatel-Lucent’s Triple Play Service Delivery Architecture as the blueprint for network transformation that will enable the delivery of new and innovative consumer and enterprise service offerings.

Hawaiian Telcom will deploy Alcatel-Lucent’s access and IP routing solutions to replace the existing high-speed Internet infrastructure, and to provide the scalability, reliability and speeds necessary to deliver compelling new service offerings such as IPTV, advanced and interactive Internet and premium Ethernet and IP VPN services.

“By offering innovative and advanced services to our consumer, small business and enterprise customers, Hawaiian Telcom is strengthening its competitive position,” said Michael McHale, Chief Marketing Officer for Hawaiian Telcom. “The deployment of Alcatel-Lucent’s Triple Play Service Delivery Architecture is a significant element of our ongoing network transformation strategy to IP-based technologies.”

“The transformation of operator networks is something that we continue to see in all regions around the world as our customers strive to maintain an edge in a competitive marketplace,” said Tim Krause, Alcatel-Lucent’s Chief Marketing Officer, North America. “We are pleased to continue working with Hawaiian Telcom as it transforms its network and business in a way that will benefit both consumers and enterprises.”

Alcatel-Lucent will provide Hawaiian Telcom with its state-of-the-art ISAM product family a modular and flexible platform (including the Alcatel 7330 ISAM FTTN and the Alcatel 7342 ISAM FTTU) to extend the bandwidth potential of fiber from the network core to the subscriber premises, as well as the 7750 Service Router (SR) and Alcatel 7450 Ethernet Service Switch (ESS) to address its service routing requirements.

Worldwide, more than 150 service providers in over 65 countries, including AT&T, BT, Telia Sonera, Telefonica and China Telecom, have selected the Alcatel IP portfolio.

Alcatel-Lucent’s ISAM product family is the industry's first IP broadband services access platform, accommodating a wide range of access technologies and network topologies. The ISAM family is specifically designed to minimize the complexity and ensure profitability as service providers transform their broadband access networks to support full triple play service adoption. In addition to Hawaiian Telecom, more than 100 service providers worldwide have chosen Alcatel-Lucent’s ISAM family of products, including AT&T, China Telecom, Swisscom, and TELUS.

About Hawaiian Telcom

Hawaiian Telcom is the state’s leading telecommunications provider, offering a wide spectrum of telecommunications products and services, which include local and long distance service, high-speed Internet, wireless services, and print directory and Internet directory services. For more information, visit: http://www.hawaiiantel.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 79,000 employees and 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 proforma combined revenues of Euro 18.6 billion in 2005, and is incorporated in France, with executive offices located in Paris. [All figures exclude impact of activities to be transferred to Thales]. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com

Contact the Alcatel-Lucent Press Office: [email protected]