Alcatel-Lucent

Corporate Overview

All Rights Reserved © Alcatel-Lucent 2007

 Who are we?

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Because the World Is Always On…

Alcatel-Lucent, the company that will drive the

global communications transformation in the 21st
century. Created on November 30, 2006

• The most comprehensive portfolio of market-driven

integrated end-to-end solutions
• Unparalleled strategic partnerships
• Industry-leading research and innovation technologies
• Strong relationships with every major service provider and
enterprises around the world
• People with the energy and expertise to find innovative
answers to your challenges

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Alcatel-Lucent at a Glance

• Chief Executive Officer: Pat Russo

• Executive offices in Paris
• Worldwide presence: 130 countries
• Annual Revenues: €18.3 billion (CY06 pro forma)
• Employees: 80,000
• R&D: €2.7 billion (CY06 pro forma); active patents
Pat Russo,
Chief Executive Officer held: 25,000; Nobel Prizes won: 6

Market rankings:
• No. 1 in Wireline
• No. 3 in Wireless
• No. 2 in Services
• No. 1 in Europe for Enterprise communications solutions

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Our Vision — Our Mission

Our Vision
To enrich people's lives by
transforming the way the
world communicates

Our Mission
To use our unique capabilities to
ensure that our customers thrive, our
business grows and we enrich the
personal communications experience
for people around the world

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 Our Values

Our values guide our day-to-day activities

Customers First

Innovation

Teamwork

Respect
The values of Alcatel-Lucent
are commitments we make to Accountability
ourselves and to our customers,
investors and communities.

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Alcatel-Lucent Brand Identity

Our new brand identity shows

that we are proud of who we are,
of where we come from and
of what we have created together

• An infinity symbol with the letters "A" and "L" embedded in it,
representing the endless possibilities for the future and our
commitment to being a strong, stable and enduring ally for our
customers around the world
• A striking vibrant purple color, symbolizing power and ambition,
and associated with wisdom, dignity, independence and
creativity

These are the characteristics of our company

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 Helping Transform the Way the World Communicates

What
User-Centric Broadband Business Critical
Experience for All Communications

our customers deliver

We help customers deliver We help customers in high- We help enterprises meet
personalized blended growth economies to increase their business critical needs
services that are available voice & data penetration and with industry-specific, end-
on any device, at work, at enable mass-market to-end, integrated
home or on the go. broadband, profitably. communications.

Competitive Transformation

How
our customers
deliver it
Service Transformation

Unmatched agility thanks to

Network Transformation

User-centric communications
Business Transformation

Shortened time-to-market,
our carrier-grade service and a differentiated quality and a reduction of the
delivery environment, which of experience thanks to a complexities inherent in
binds applications to shared service-aware, converged large-scale transformation
network and management network. projects.
resources

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 Our Market Strengths

We have in-depth experience with our global

customers’ networks and business challenges.
First true global communications No. 1 Wireline, No. 3 Wireless, in the
solutions provider top 3 in Applications & Services

Diversified portfolio of A leader in IPTV, Carrier and Enterprise IP,

complementary products NGN/ IMS, 3G Spread Spectrum (CDMA & UMTS)

Diverse customer base ~ 1/3 Europe; ~ 1/3 NAR; ~ 1/3 Rest of World* in
2006

Extensive end-to-end services Critical capabilities in next-gen network

& support capabilities transformation, multivendor services

Leading R&D capabilities In 2006, €2.7 billion investment**, 25,000 active

patents held
* incl. APAC, Middle East & Africa, Caribbean & Latin America
•** CY06 pro forma
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Leadership in Innovation

We are an innovation powerhouse

• One of the largest global R&D capabilities in

communications, leveraging the strengths of Bell Labs and
Research & Innovation
• Innovation centers around the world, including the USA,
Canada, France, Germany, Belgium, UK, Italy, Spain,
Ireland, Russia, Poland, Romania, China and India
• A heritage of life-changing innovations: DSL, PON,
WiMAX, as well as WDM, computer networking, transistor,
digital signal processing, charge coupled device (CCD),
communications satellite, laser and cellular telephony

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Worldwide Innovation Teams

Russia
Romania €2.7 billion R&D Investment (CY06)
Poland 14% of Alcatel-Lucent revenues
Slovakia
UK
Ireland
France
Canada Germany
Netherlands
USA China
Belgium
Italy India
Spain Australia
Israel

25,000 active patents worldwide

Active in 130 standards bodies

Product & Solution Development Centers

Research Centers

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Global Network of IP Transformation and Operations Centers (IPTCs and GNOCs)

North America
 Plano, TX
 Lisle/Naperville, IL
 Whippany, NJ

Europe
 Antwerp, Belgium
 Hilversum, Netherlands

APAC
 Singapore

Combined solution integration and project management expertise

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 Alcatel-Lucent:
Structure & Organization

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Senior Leadership Team

CEO
P.Russo
IS/IT
E. Hackenson

Technology & CAO

CTO Legal
Strategy F.D’Amelio
O.Baujard S. Reynolds
M.Quigley

Bell Labs CFO HR / Comm.

CMO
J.Kim J-P.Beaufret C.Pedini
J. Giere

Strategy Compliance Communication Supply Chain &

H.Kristoffersen J.Davidson C.Guillaumin Procurement
M. Lehnich

Carrier Markets Integration

E.Fouques C.Reinaudo

Enterprise
Wireless Wireline Convergence Services
H. de
M. Chan M. Rahier M. Rouanne J. Meyer
Pesquidoux

North America Europe & South Europe & North Asia-Pacific

C.Christy O. Picard C.Reinaudo F.Rose

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 Overview of Our Structure

We serve carriers and enterprises with a strong focus on end-to-end

solutions that maximize value for customers around the world

5 Business Groups 4 Geographic Corporate Center

with primary responsibility
for profit and loss Regions Functions
with primary responsibility to support the entire
Carrier Market for operations company.
•Wireless Business Group affecting customers
•Wireline Business Group
•Convergence Business Group A worldwide integrated
• North America
supply chain and
•Enterprise Business Group
•Services Business Group • Europe and South procurement organization,
finance, research &
Business groups support • Europe and North innovation, information
centers in each of the four technology, marketing,
regions provide pre- and • Asia-Pacific human resources,
post-sales technical support communications, legal,
and program management. real estate, compliance…

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 Alcatel-Lucent Regions

Europe & North

North
America

Europe & South

APAC

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A Closer Look at Our Financials (2006 pro forma)

Revenue by region Revenue by business group

Western Europe North America Services

~26% ~36% ~16%

Enterprise Wireline
~9% ~31%
Convergence Carriers
~12% Wireless
~32% ~75%

ROW Asia
~23% ~15%

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Europe & South Region

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RU: South East Europe

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 Our Activities

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 Wireless Business Group
The Most Comprehensive Portfolio in the Industry

CDMA
CDMA
Undisputed #1 leader
W-CDMA
W-CDMA
Strong recognition in
Tier-1 operators
Driving 3G evolution towards EV-DO, VoIP Western Europe, NA, South-Korea

GSMGSM
Strong GSM/EDGE position WIMAX
WIMAX
Leadership
173 customers in 802.16-2005
93 countries (16e)

Wireless
Wireless Transmission RFS
Radio Frequency Systems
Leadership in long-haul Leader in Wireless infrastructure
Transmission
#1 Leadership in ANSI market Worldwide presence

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Wireline Business Group
Industry Leader

#1 in Broadband #1 in Multi-service
Access WAN

#2 in IP/MPLS Edge
#1 in Terrestrial &
Routing & Carrier
Ethernet Submarine Optics

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Convergence Business Group
Six Strategic Market Evolution Areas, Enabled by Six Technologies

IMS Services IPTV & MultiPlay Payment

15 Deployments #1 in Triple Play #1 in Real Time Payment
115+ Deployments 220+ Customers

Communication Entertainment Charging

Software
IP/NGN Subs Data Management
+
1/5 of the world’s mobile subscribers Unmatched Field Experience
170+ Customers 245 IP/NGN Deployments Hardware
+
Network Evolution User Management Integration Services

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 Enterprise Business Group
Recognized Leadership

Recognized Product & Technology

• #1 in Contact Center software
• #3 in Contact Center agent positions worldwide
• #1 in Enterprise Telephony Western Europe
• #1 in Total PBX, EMEA
• #1 in Enterprise Telephony, EMEA for Q2 2006

Customer References
• #1 worldwide provider of multi-product solutions to
telecommunications and networking companies
• More than 250,000 enterprise and government customers
• 5 Global Network Operations Centers on three continents serving
top Fortune 500
• 100 million customer interactions managed every day by more
than 3,300 enterprises through contact centers operated by our
customers

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 Services Business Group
Leading the Way

#2 in Services
Market Share Globally

IP & Network Multi-Vendor

Transformation Maintenance
40+ triple play, 40+ IP transformation projects Servicing over 11,000 maintenance agreements

Network Operations & Enterprise & Government

Management Services
50+ networks managed globally from Solutions for Transportation, Energy, and
10 Network Operations Centers Safety/Security industries

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Europe & South Region

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Alcatel-Lucent South Eastern Europe

Alcatel-Lucent business operations in South

Eastern Europe are centrally coordinated from
Romania and relying on distributed local units:
• more than 1800 employees in the Region
• 24/7 regional TAC-Technical Assistance Centre
• 300 MEUR turnover
• R&D centers for radio transmission, optics, core
switching Alcatel-Lucent certified training centre
• Corporate International Services

Alcatel-Lucent South Eastern Europe :

Romania, Bulgaria, Macedonia, Albania, Bosnia&Herzegovina, Croatia,
Cyprus, Greece, Moldova, Montenegro, Serbia, Slovenia

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Contracts in Bulgaria: Mobiltel

Framework Agreement for the delivery, installation and commissioning of GSM/UMTS network
BSS & NSS equipment since 2001 until today
 1 MSC, 1 GPRS Core, 30 BSC installed, over 505 BTS swapped (Nortel & Siemens equipment
replacement), over 700 BTS installed

Maintenance and technical assistance services

 field support location : Varna, Burgas, Ruse, Pleven, Tarnovo, Sofia

Projects/activities on-going: 2G deployment:, 3G

deployment to start in March
BSC

MSC

Local Services relies on a team of more than 20 certified telecom engineers

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 Contracts in Bulgaria: Natsionalna Elektricheska Kompania

NEK 1 -Project Scope:

Turnkey integrated communication and control
network to link the high-voltage power grids
between Bulgaria and Greece
•SDH Transmission network: 7 nodes
P
•OPGW: 195 km, OPUG: 4km “Botunets”+
Sofia West “Serdika”
s/s
R
CMizia s/s
46.9km “Murgash”
90.0km
“Liulin”
•Digital PLC equipment: 8 nodes 44.8km
Stolnik s/s

Cherveha NDC P
Mogila s/s“Osogovo” R
•SCADA: 8 RTUs and Data Concentrator C Aleko
74.3km Kazichene s/s s/s RDC South LEGEND
Existing OPGW
Bobov dol TPP“Bodrost” Existing FOTS
10.3km OPGW in a near future
•Turn-key installation and commissioning Services Blagoevgrad-400 Simitly
s/s s/s
OPGW for delivery
Underground optical cable for delivery
FOTS for delivery
Thessaloniky
Contract value: 2.7 MEUR Greece

Implementation completed in due time November 2004

Project Management structure composed of 14 dedicated engineers and 6

central supporting functions (logistics, accounting, order administration,
quality audit)

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 Contracts in Bulgaria: Natsionalna Elektricheska Kompania

NEK 2- “ENERGY 2” -Package B2 “Development of Telecommunication

System of Natsionalna Electricheska Kompania” Procurement of
telecommunication equipment in several lots

• Lot1 delivery, installation and commissioning SDH, PDH, Data

Equipment, Power Supply in 47 sites

• Lot 2 delivery, installation and commissioning of Teleprotection

equipments in 34 sites.

• Lot 3 delivery of inverters, UPS and rectifiers for more than 50 sites.

Contract value: 2.3 MEUR

Project Acceptance : June 2007

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 Contracts in Bulgaria: BTC

More than 20 contracts between Alcatel Lucent and BTC AD between

2000 – 2006

• BTC national, regional and cities junction SDH transmission network of

which 2900 km cable and 250 km M/W.

• BTC IN system (9 services)

• BTC: maintenance services for the transmission network

More than 35 MEUR projects with BTC between 2000 – 2006

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 Other Major Contracts in Bulgaria

Alcatel-Lucent build, commissioned and maintain the following major

transmission network in Bulgaria:

• KAFOS (500 km STM 4) and BSFOCS (1300 km STM 16) submarine network
systems , where BTC is a part of the consortium.

• State Agency for Information Technologies and Communication national

SDH transmission Network of 1800 km.

• MoD Strategic National ATM/SDH transmission network 0f 1200 km.

• Vestitel (Overgas) transmission SDH STM 16 link 120 km.

• Bulgarian Social Security Institute National network. 30 nation-wide

sites(nodes)

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 Questions?

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 Thank you.

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 www.alcatel-lucent.com
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