Alcatel Shanghai, Datang TeamAlcatel Shanghai, Datang Team

PARIS -- Alcatel-Lucent’s (Euronext Paris and NYSE: ALU) Chinese flagship company, Alcatel Shanghai Bell, and Datang Mobile today announced that they have been tasked to deploy half of the TD-SCDMA expansion project China Netcom is launching in the coastal city of Qingdao, Shandong Province. This win builds on another TD-SCDMA contract the two companies recently secured with China Mobile and further strengths their technology-leading and market-leading positions in TD-SCDMA.

Under the project, Alcatel Shanghai Bell and Datang will provide China Netcom with core and radio equipment to expand the TD-SCDMA network. In addition, Alcatel Shanghai Bell will provide China Netcom with intelligent network and streaming media service platforms. All macro node B and distributed node B (base station) equipment will be manufactured by Alcatel Shanghai Bell. Upon completion of the project, China Netcom will be able to provide a broad suite of advanced 3G (third-generation) services to subscribers in central business districts, government, tourist locations and sites related to the 2008 Olympic Games.

“This successful bid is another powerful testimony to the strength of our strategic partnership with Datang in TD-SCDMA,” said Gerard Dega, President of Alcatel Shanghai Bell. “With our proven industrialization capability and global experience in 3G deployment, we will be able to support China Netcomin its effort to satisfy end-users with new, high-quality, next-generation mobile services.”

Alcatel Shanghai Bell Co. Ltd.

Datang Mobile Communications Equipment Co. Ltd.