Reliance Communications Awards Alcatel-lucent All-ip Next-generation, Cdma And Gsm Network Expansion

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RCL/MR/2006/58

July 12, 2007

Reliance Communications Awards Alcatel-Lucent All-IP Next-Generation, CDMA and GSM Network Expansion

Contract valued at more than US$400 Million

Reliance to extend telecommunications services to rural areas throughout India for the first time

Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has been awarded an a IP-based next-generation, CDMA and GSM network contract valued at more than US$400 million from Reliance Communications, India's largest integrated telecom service provider. This contract will enable Reliance Communications to expand its wireless network to more than 20,000 towns and 600,000 villages. This project represents one of the largest telecom expansions undertaken by a telecom operator anywhere in the world.

"In our endeavor to build a best-in-class infrastructure in the country, offering better overall performance and a higher quality of service to many million Indians, our wireless network will cater to customers across 20,000 towns and 600,000 villages upon completion of the current phase of expansion," said Anil Ambani, Chairman, Reliance Communications. "The expansion of our wireless CDMA and GSM network would further enhance our competitive edge in effectively participating in the achievement of our national teledensity targets of 500 million by 2010, thereby contributing to economic growth."

In the framework of this contract, Alcatel-Lucent will upgrade Reliance's CDMA and GSM network with additional mobile switching centers and base stations. Alcatel-Lucent also will provide a comprehensive suite of network integration services, including network optimization, system support and general project management. This project substantially strengthens Alcatel-Lucent's position in the Indian mobile market and extends the range of wireless solutions that Alcatel-Lucent provides to Reliance Communications.

"For a project of this magnitude, Reliance Communications needed a supplier with a deep understanding of and experience with the leading wireless technologies. Alcatel-Lucent is unique in the broadness of its wireless portfolio and the depth of its expertise. After years of faithful cooperation, the people of Reliance Communications understand that the Alcatel-Lucent team are committed to continue to deliver innovative solutions to Reliance Communications to help it enhance the quality of service it provides its subscribers and to enable it to enhance its leadership position in Indian telecommunications space," said Patricia Russo, CEO, Alcatel-Lucent. "The expansion of the Reliance network, particularly in rural areas, will help improve the lives of millions in India, and is further evidence of our commitment to meeting the communications needs of high-growth economies."

About Reliance Communications

Reliance Communications Limited founded by late Shri. Dhirubhai H Ambani (1932-2002) is the flagship company of the Reliance Anil Dhirubhai Ambani Group. Rated among Asia's 6 Topmost Valuable Telecom Companies, Reliance Communications is India's foremost truly integrated telecommunications service provider. The company with a customer base of over 35 million including over one million individual overseas retail customers ranks among the Top 10 Asian Telecom companies. Reliance Communications corporate clientele includes 600 Indian and 250 multinational corporations, and over 200 global carriers.

The company has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting best-of-class services spanning the entire Infocomm value chain, covering over 8000 towns and 3,00,000 villages. Reliance Communications owns and operates World's largest next generation IP enabled connectivity infrastructure, comprising over 150,000 kilometers of fibre optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region. Website: www.reliancecommunications.co.in

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

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