ALU Restructures in France

PARIS -- Within the framework of the global cost reduction plan of Euro 1.7 billion confirmed by Alcatel-Lucent on February 9, 2007, the management teams of Alcatel-Lucent France (ex-Alcatel CIT), ABS and Compagnie Financière Alcatel-Lucent announced their respective restructuring projects to the social partners in France on February 13 and 14.

These plans are related to previous announcements concerning the merger of Alcatel and Lucent Technologies, the acquisition of Nortel’s UMTS activities, as well as the highly competitive market environment. The objective of the plans is to quickly rationalize duplications in positions resulting from the recent strategic moves, adapt the company’s business model to the business model of our customers (carriers and enterprises), as well as align our investments with our perspective.

The restructuring plans could impact 1,468 positions by the end of 2008, which represents about 12% of Alcatel-Lucent’s workforce in France. The Parisian area will be slightly more impacted than the rest of the country. However, the plan includes the merging of sites in Brittany, reinforcing the two key sites of Orvault (Nantes) and Lannion by redeploying the competences currently based in Rennes-Cesson and Rennes-St Grégoire.

Alcatel-Lucent (NYSE: ALU)