Alcatel-Lucent RT to design, produce IP-based high-tech telecommunications equipment in Russia

Russian State Corporation Rostechnologii (
SC Rostechnologii) and Alcatel-Lucent (Euronext Paris and NYSE: ALU) today
announced that they plan to form a joint venture (JV) — called Alcatel-Lucent
RT — to design, produce and promote IP-based high-tech telecommunications
equipment in Russia and in the Commonwealth of Independent States (CIS).

Under the agreement, the joint venture, led by Ivan Makharine as General
Director, will be incorporated between subsidiaries of the two groups, operate
from Moscow, and begin operations in the first quarter of 2010. It will offer
advanced telecommunications solutions to the fast growing service provider and
enterprise market segments in the region. The joint venture will develop,
produce and deliver solutions that address the high reliability and security
requirements defined by Russian and other regional governmental bodies.
Production is planned to be centered in existing manufacturing facilities of SC
Rostechnologii.

"Setting up the joint venture focused on manufacturing and promotion of
advanced telecommunications products reflects the policies of our corporation
supported by the Russian government and aimed at developing high-tech
production and science-intensive industries," said S.V. Chemezov, General
Director, SC Rostechnologii. "We value the cooperation with this reliable and
respected partner, Alcatel-Lucent because of its ability to deliver innovative
solutions that it sustains through Bell Labs, its world-renowned research arm.
By investing resources in state-of-the-art future-proof technologies, we can
help to strengthen Russia’s telecommunications industry."

"This partnership is a further step in our transformation strategy and
strengthens our ability to promote Alcatel-Lucent’s solutions in Russian and
CIS region. It also leverages the considerable knowledge and experience of our
partner, SC Rostechnologii, in pursuit of our joint interests," said Luis
Martinez-Amago, Head of Alcatel-Lucent business in CIS, Central and Southern
Europe. "By building on the inherent strengths of each partner, we are able to
supply our customers in Russia and CIS with best-in-class, innovative products
that are specifically designed to support their go-to-market strategies."

The initial joint venture product portfolio will includethe Alcatel-Lucent
IP LAN switches and routers, the Alcatel-Lucent IP/MPLS based Service Routers
and Service Switchesfor service provider networks and for geographically
distributed corporate networks, IT security hardware and software solutions, as
well as Alcatel-Lucent IP PBXs. The level of localization will depend on
administrative requirements and economic feasibility.

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