Alcatel-Lucent and Kyocera Wireless sign joint development agreement

Paris, September 25, 2007 – Alcatel-Lucent (Euronext Paris and NYSE: ALU) and Kyocera Wireless, a leading global manufacturer of wireless phones and devices,today announced that the two companies have signed a joint development agreement under which they will collaborate on the development of end-to-end wireless broadband solutions based on Universal WiMAX technology. The solutions will incorporate Alcatel-Lucent’s industry-leading WiMAX network infrastructure -- based on the latest IEEE 802.16e-2005 standards (also called Rev-e) -- and a variety of wireless end-user devices from Kyocera, including multimode mobile phones, non-traditional wireless devices, wireless PC cards and USB devices for PCs.

Under the agreement, the two companies will cooperate to ensure the rapid development of WiMAX devices with enhanced mobility features, as well as multi-mode terminals that can enable seamless interoperability between WiMAX networks and cellular or Wi-Fi networks. The joint program will cover the establishment of specifications, the development and integration of WiMAX solutions, and the creation of an interoperability testing (IOT) program to ensure that the new Kyocera WiMAX devices can operate smoothly on Alcatel-Lucent’s infrastructure. Alcatel-Lucent and Kyocera anticipate the commercial availability of fully integrated solutions of WiMAX base stations and terminals from the two companies in the first half of 2008.

“The collaboration with Kyocera Wireless represents a further step forward for Alcatel-Lucent’s WiMAX business and enhances our ability to address end-user demand for mobile broadband services,” said Karim El Naggar, vice president of Alcatel-Lucent’s WiMAX business. “The commitment by Kyocera, a leading, innovative developer of mobile devices highlights, how WiMAX is maturing into a truly mass market service featuring an interesting and attractive selection of devices from leading manufacturers. Furthermore, this collaboration is an integral part of our Open CPE Program and reinforces our end to end offering in the high-end, high-performance CPE segment.”

The agreement expands on and formalizes an ongoing collaboration between Alcatel-Lucent and Kyocera on WiMAX solutions. Earlier this year, the two companies conducted WiMAX demonstrations – featuring multiple input/multiple output (MIMO) Spatial Multiplexing technology – at the CTIA Wireless tradeshow and exhibition in Orlando, Florida.

“As the first device manufacturer to successfully demonstrate a MIMO-enabled WiMAX PC Card, Kyocera has sought to collaborate with an industry leader such as Alcatel-Lucent within the WiMAX ecosystem to leverage this necessary building block,” said Dave Carey, vice president of Strategic Planning at Kyocera Wireless. “The promise of WiMAX is not only high-speed mobile connectivity but also flexibility to move beyond the traditional handset. We look forward to working closely with Alcatel-Lucent to develop future MIMO-enabled solutions that will separate Kyocera from our competitors as a true integration leader.”

Alcatel-Lucent’s Universal WiMAX solution is designed to enable rapid implementation of voice over IP (VoIP) and broadband services such as mobile data, video streaming and virtual private network access in fixed, nomadic and mobile environments. WiMAX is a flexible technology that enables people to access high-speed, high-quality broadband wireless services wherever they are and wherever they go, providing truly “universal” wireless broadband access.

Alcatel-Lucent’s Universal WiMAX solution integrates the latest technological innovations, such as “beam forming”* and MIMO**. Beam forming enables a service provider to dramatically reduce the number of radio sites needed to provide coverage– in some instances by as much as 40 percent – while reducing interference and ensuring better indoor penetration of radio signals. MIMO helps make radio links more robust, nearly doubling the capacity delivered in dense urban environments.

Kyocera’s innovative expertise with antenna diversity lends an advantage with MIMO-powered WiMAX, which uses multiple antennas to deliver mobile services three to five times faster than today's wireless broadband cellular networks, and at a much lower cost to carriers.

With more than 70 pilots and deployments across the world and 15 commercial contracts signed since the beginning of 2007, this new project clearly underscores Alcatel Lucent's leading position in the WiMAX market.

About WiMAX:
WiMAX (802.16e-2005) stands for Worldwide Interoperability for Microwave Access. It enables Voice and Broadband connectivity for fixed, nomadic or mobile use in urban, suburban and rural areas. For more information about WiMAX, please click here [1].
* “Beam forming” is an Advanced Antenna Technology (AAT) that ensures that radio power is concentrated where the WiMAX terminals are, adjusting the beam automatically as the terminals move around the coverage area.
** “MIMO” (Multiple Input – Multiple Output) is an Advanced Antenna Technology (AAT) that combines the radio signals transmitted and received on separate antennas. The technique takes advantage of the multiple paths and reflections of a radio signal, in effect using interference to strengthen radio communications, particularly in densely populated areas where signals can be degraded by buildings and other physical obstacles.

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: http://www.alcatel-lucent.com [2]

Contact the Alcatel-Lucent Press Office:    press@alcatel-lucent.com [3]