EPB Selects Alcatel-Lucent for FTTH Services in Chattanooga, Tennessee

CHATTANOOGA, Tenn. and PARIS, Sept. 24 /PRNewswire-FirstCall/ — Alcatel-Lucent (Euronext Paris and NYSE: ALU) and EPB, one of the largest publicly-owned providers of electric power in the United States, today announced that EPB has selected Alcatel-Lucent’s IPTV solution to offer advanced TV and additional communications services to its customers in the greater Chattanooga area. The contract is valued at USD 67 million (Euro 45.5 million), and the system is expected to be fully deployed throughout the greater Chattanooga area within five years. EPB officials anticipate initial deployment by early 2009.

The service will be based on Alcatel-Lucent’s industry-leading Triple Play Service Delivery Architecture (TPSDA) which will power EPB’s TV service delivery. Alcatel-Lucent will be responsible for the end-to-end network integration.

Alcatel-Lucent’s solution will enable EPB to offer a full suite of interactive and blended services over a single IP/MPLS infrastructure with fine-grain quality of service (QoS). Alcatel-Lucent’s TPSDA will enable EPB to offer advanced TV services, including video on demand (VoD), with content featuring high definition (HD)-quality picture resolution. In addition, the combined solution will provide EPB with an enhanced user experience by enabling user-centric features.

“FTTH will provide Chattanooga with the tools, resources and technology it needs to become a leading competitor in today’s global marketplace,” said Harold DePriest, president and CEO of EPB. “Using the fiber optic network we’re putting in place for our new Smart Grid allows us to also offer the most advanced communications services, like high speed Internet, video entertainment, and digital phone, to our community.”

Alcatel-Lucent will provide its TPSDA architecture including a broadband access network based on its 7342 Intelligent Services Access Manager Fiber-to-the-User (ISAM FTTU) system, 7750 Service Router (SR), 7450 Ethernet Service Switch, 5620 Service Aware Manager, and 5750 Subscriber Services Controller.

As the prime integrator, Alcatel-lucent is responsible for the end-to-end solution including the video head end, network infrastructure, IPTV service platform and OSS systems. The scope includes the architecture design, testing, integration, deployment, operations and maintenance. The solution leverages Alcatel-Lucent’s extensive field deployment experience and lab investments in next generation IP Transformation Centers (IPTCs) to reduce time to market and deliver a superior user experience for EPB customers.

“Our work with EPB highlights Alcatel-Lucent’s leadership in helping industry and public sector customers as they look to upgrade their networks and provide a higher quality of experience for their customers.” said Walt Paskowski, vice president of sales for Alcatel-Lucent’s Industry and Public Sector activities in North America. “Alcatel-Lucent’s municipal broadband solution, in addition to EPB’s existing communications expertise, customer service capabilities, established billing system and physical resources, will enable EPB customers to receive the most advanced communications services.”

Alcatel-Lucent is the leader in end-to end-triple play networks and integration, currently deploying its TPSDA with more than 50 operators worldwide, now including EPB. Alcatel-Lucent is also the world leader in both IPTV and Mobile TV, having already enabled TV, video and music services for more than 140 fixed and mobile service providers around the world. Alcatel-Lucent has led the GPON market since 4Q 2007 according to Access Report 2Q’08 – Market Summary & Vendor Information, Dell’Oro, August 2008.

About EPB

EPB provides crucial infrastructure and service through its EPB Electric Power and EPB Telecom companies. EPB Electric Power is one of the country’s largest publicly owned electric power companies and EPB Telecom is the second largest business communications company in the Chattanooga market.

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions that enable service providers, enterprise 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 revenues of Euro 17.8 billion in 2007 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com/ .

Alcatel-Lucent

CONTACT: EPB Media, Lacie Newton, +1-423-648-1214, newtonll@epb.net, forAlcatel-Lucent; or Media, Regine Coqueran, +33(0)1-40-76-49-24,regine.coqueran@alcatel-lucent.com, or Denise Panyik-Dale, +1-908-582-4897,dpanyikdale@alcatel-lucent.com, or Investors, Remi Thomas,+33(0)1-40-76-50-61, remi.thomas@alcatel-lucent.com, or Tom Bevilacqua,+1-908-582-7998, bevilacqua@alcatel-lucent.com, or Tony Lucido,+33(0)1-40-76-49-80, alucido@alcatel-lucent.com, or Don Sweeney,+1-908-582-6153, dsweeney@alcatel-lucent.com, all of Alcatel-Lucent

Web Site: http://www.alcatel-lucent.com/http://www.epb.net/index.php