Alcatel-Lucent Introduces New Targeted and Interactive Advertising Solution for IPTV Networks, Helping Enhance the TV Ad Model and Enrich the TV Viewing Experience

Alcatel-Lucent Introduces New Targeted and Interactive Advertising Solution for IPTV Networks, Helping Enhance the TV Ad Model and Enrich the TV Viewing Experience

Solution Leverages IPTV Networks to Offer a More Effective way to Target and Measure Advertising; Lays the Groundwork for Multi-Screen Advertising

Broadband World Forum, BRUSSELS, September 29/PRNewswire-FirstCall/ -- At the Broadband World Forum Europe 2008 trade show and
exhibition today, Alcatel-Lucent (Euronext Paris and NYSE: ALU) is
introducing a new advertising delivery solution for IPTV networks that can
help enhance the TV ad model by enabling service providers to distribute ads
to distinct groups of consumers. Alcatel-Lucent's Targeted and Interactive
IPTV Advertising Solution is designed to increase IPTV revenue by making it
possible for advertisers to reach the most attractive potential customers
with ads that are more timely and relevant, as well as better measure the
effectiveness of their campaigns. The solution also offers a variety of
interactivity features that enable consumers to view additional information
about products that interest them.

The Targeted and Interactive IPTV Advertising Solution gives
IPTV operators the ability to insert ads into TV programs that are aimed at
particular communities of interest and even specific households. These ads
are delivered using anonymous subscriber profiles based on service usage and
demographic data authorized via an "opt in" process and retained in a secure,
privacy-protected repository by the service provider. The solution
incorporates subscriber data analysis and management capabilities - to
support ad targeting - and audience measurement features to precisely analyze
the effectiveness and return on investment (ROI) from particular campaigns.
Combined, these capabilities will enable service providers to dramatically
increase the value and attractiveness of their available ad slots (also known
as "inventory").

"Alcatel-Lucent's Targeted and Interactive IPTV Advertising
Solution is designed to address an important challenge in the advertising
world -- knowing whether or not you are reaching your audience," said Michel
Rahier, President of Alcatel-Lucent's carrier business activities. "This new
solution makes it possible for service providers to enable advertisers to
reach customers that would have a natural interest in their products, and
ensure that subscribers are seeing ads that are relevant to their lifestyles
and interests."

This new solution is a key element of Alcatel-Lucent's broader
initiative to enable service providers to leverage their IP-based networks to
enhance and evolve the TV and video viewing experience to make it more
compelling for subscribers, while opening new revenue opportunities. Toward
this end Alcatel-Lucent is driving the development of smart, IP-based,
video-centric networks that offer subscribers a consistent, high-quality,
personalized and interactive viewing experience.

The Targeted and Interactive IPTV Advertising Solution also
takes advantage of the capabilities of the next generation of
Alcatel-Lucent's industry-leading Triple Play Service Delivery Architecture
(TPSDA) - dubbed TPSDA 2.0 - which was also introduced today. TPSDA amplifies
and extends the power of service providers' IP networks by distributing an
array of new capabilities - including targeted and linear ad insertion -
throughout the network.

"Alcatel-Lucent, the clear leader in IPTV infrastructure, has
assembled an end-to-end IPTV advertising proposition that brings the best
characteristics of the lucrative online advertising model into triple play
networks," said Jeff Heynen, Directing Analyst, IPTV and Next Gen OSS/BSS at
Infonetics. "By building ad targeting and interactive capabilities into their
triple play network architecture, service providers gain the advantages of
exceptional scale, flexibility and cost-effectiveness, as well as a platform
for targeted advertising across multiple screens."

The key elements in the targeted and interactive IPTV
advertising solution are:

- New Targeted Ad Insertion Splicer and Targeted Ad Insertion Agent -
deployed in a distributed fashion but operating in tandem - along with
novel IPTV channel and ad activity tracking functions, all integrated
into our market-leading TPSDA

- 5930 Interactive Media Manager which enables dynamic interactive
applications and advertising campaigns

- 8660 Datagrid suite, 8920 Service Quality Manager, and 5410 Presence
Server which unify subscriber data and measure responses for greater
effectiveness of ad content

- Robust advertising ecosystem for IPTV networks featuring a variety of
best-in-class third parties.

- World-class professional and integration services

Alcatel-Lucent is a recognized leader in IPTV, with the #1
position in IPTV middleware subscribers (2+ million), TPSDA deployments (55+)
and IPTV transformation and integration projects (50+). These transformation
projects leverage 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.

TPSDA is the blueprint architecture to accelerate IP network
transformation for delivery of video, voice, data and entertainment services.
The architecture leverages Alcatel-Lucent's industry-leading broadband
access, optics, Carrier Ethernet and service-aware IP technologies, and
combines them with robust subscriber and network management, security
capabilities, and a comprehensive suite of design, deployment and integration
services.

For more information on the Targeted and Interactive IPTV Advertising
solution, visit: http://www.alcatel-lucent.com/targetedadvertising

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.

Source: Alcatel-Lucent

Alcatel-Lucent Press Contacts: Regine Coqueran, Tel: +33-(0)1-40-76-49-24, regine.coqueran@alcatel-lucent.com; Mark Burnworth, Tel: +32-(3)-240-38-81, mark.burnworth@alcatel-lucent.com. Alcatel-Lucent Investor Relations: Remi Thomas, Tel: +33-(0)1-40-76-50-61, remi.thomas@alcatel-lucent.com; Tom Bevilacqua, Tel: +1-908-582-7998, bevilacqua@alcatel-lucent.com; Tony Lucido, Tel: +33-(0)1-40-76-49-80, alucido@alcatel-lucent.com; Don Sweeney, Tel: +1-908-582-6153, dsweeney@alcatel-lucent.com

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