PARIS and MURRAY HILL, New Jersey, November 30
/PRNewswire-FirstCall/ -- - Unparalleled Communication Solutions
Leader With Global Reach, and a Local Presence in 130 Countries - A
Leader in Wireline, Wireless and Converged Broadband Networking, IP
Technologies, Applications and Services - Ideally Positioned to
Help Service Providers, Governments and Enterprises, Transform
Their Networks - Pro-forma Annual Revenues of Euro 18.6 billion*
and Euro 2.7 Billion (1) in R&D Investments With Approximately
23,000 Engineers - Expected to Generate Pre-Tax Annual Cost
Synergies of Approximately Euro 1.4 Billion Within Three Years
Alcatel (Paris: CGEP.PA and NYSE: ALA) and Lucent Technologies
(NYSE:LU) today announced the completion of their merger
transaction and that they will begin operations as the world's
leading communication solutions provider on December 1st, 2006. The
new company Alcatel-Lucent, with one of the largest global R&D
capabilities in communications and the broadest wireless, wireline
and services portfolio, is incorporated in France, with executive
offices located in Paris. The company will be traded on Euronext
Paris and the New York Stock Exchange (NYSE) from December 1st,
2006 under a new common ticker (Euronext Paris and NYSE: ALU). As a
result of the merger, each outstanding share of Lucent common stock
has been converted into the right to receive 0.1952 of an Alcatel
ADS. In connection with the merger, Alcatel has issued
approximately 878 million shares, which is equivalent to the total
number of ADS to be issued to the holders of Lucent common stock.
Following the completion of the merger, approximately 2.31 billion
ordinary shares of Alcatel-Lucent are outstanding. Serge Tchuruk,
appointed today as Chairman of the Board of Alcatel-Lucent, said:
"Alcatel-Lucent will be for our customers a partner with the scale
and scope to design, build and manage increasingly complex networks
that deliver advanced converged services and communications
experience to the end-user. That is what Alcatel-Lucent will
deliver with an unparalleled focus on execution, innovation and
service for our customers: the company will have the most
experienced global services team in the telecommunications
industry, as well as one of the largest research, technology and
innovation organizations in the industry. In fact, our combined
company is ideally positioned to help our customers transform their
networks so they can offer new kinds of personalized, blended
applications and services." Patricia Russo, appointed today as
Chief Executive Officer of Alcatel-Lucent, added: "Through this
merger, we are bringing together two top-ranking companies to form
an undisputed leader in the industry, a company poised to enrich
people's lives by transforming the way the world communicates.
Alcatel-Lucent is a strong and enduring ally that service
providers, governments and enterprises can count on to help them
unlock new market and revenue opportunities. This combination
represents a strategic fit of vision, geography, solutions and
people, leveraging the best of both companies to deliver meaningful
communications solutions that are personalized, simple to adopt and
available globally. Both Alcatel and Lucent embraced a common
culture of innovation and excellence that will help ensure the
success of our merger." A global communications solutions provider
With a comprehensive and diversified portfolio of complementary
products, Alcatel-Lucent is well-positioned to address the fastest
growing areas of network transformation. The company is a leader in
IPTV, broadband access, carrier IP, IMS and next-generation
networks, and 3G spread spectrum (UMTS and CDMA). With more than
18,000 employees working in services worldwide, the company has the
largest and most experienced global services team in the industry.
In enterprise communications solutions, Alcatel-Lucent is No. 1 in
Europe and has more than 250,000 enterprise and government
customers worldwide. A global reach with local presence With a
worldwide presence in 130 countries, 79,000 employees (after
completion of the Thales transaction) and balanced revenues across
all regions, Alcatel-Lucent has strong customer relationships with
the 100 largest telecommunications operators in the world. The
company will have four geographic regions: Asia-Pacific, Europe and
North, Europe and South and North America, to answer the needs of
service providers, enterprises and end-users in the most advanced
telecommunication markets, as well as in high-growth economies.
There will be five Business Groups: the Wireline Business Group,
the Wireless Business Group and the Convergence Business Group
(addressing the needs of the carrier market), the Enterprise
Business Group and the Service Business Group. Each Business Group
will have a decentralized regional organization that will provide
strong local support to customers. In addition there will be
several corporate functions that support the company including
worldwide integrated supply chain and procurement, finance,
information technology, marketing, human resources, legal and
communications. "While our respective corporate structures have
changed, one constant remains: our commitment to be a first class
corporate citizen and to act in a socially responsible way in
interactions with all our stakeholders," said Patricia Russo.
Unrivaled breadth and depth of research and innovation expertise
Approximately 23,000 of the 79,000 total number of employees at
Alcatel-Lucent are in R&D, including global Bell Labs which
will remain headquartered in New Jersey, USA. With Euro 2.7 billion
invested in R&D in calendar year 2005 by Alcatel and Lucent and
25,000 active patents, Alcatel-Lucent stands as an innovation
powerhouse, featuring one of the largest global R&D
capabilities in communications ready to partner and collaborate
with customers on breakthrough technology. Alcatel-Lucent also
leads standards initiatives with some 600 experts participating in
130 standardization bodies. Creating Shareholder Value Significant
cost synergies are expected to be achieved within three years of
closing and will come from several areas, including consolidating
support functions, optimizing the supply chain and procurement
structure, leveraging R&D and services across a larger base,
and reducing the combined worldwide workforce by approximately
9,000 employees. The merger is expected to result in approximately
Euro 1.4 billion in pre-tax annual cost synergies. A substantial
majority of the restructuring activity is expected to be completed
within 24 months after closing. The transaction is expected to be
accretive to earnings per share in the first year post closing with
synergies, excluding restructuring charges and amortization of
intangible assets. Corporate governance The 14 Members of the Board
of Directors are: Daniel Bernard, W. Frank Blount, Jozef Cornu,
Linnet Deily, Robert Denham, Edward Hagenlocker, Jean-Pierre
Halbron, Karl Krapek, Daniel Lebegue, Patricia Russo, Henry Schacht
and Serge Tchuruk, and two additional jointly agreed directors
appointed by the Alcatel-Lucent Board: Sylvia Jay and Jean-Cyril
Spinetta, who were not members of either Alcatel Board of Directors
or Lucent Board of Directors prior to the merger. There will be two
Board observers representing the employee shareholders of the
company's Employee Investment Fund: Jean-Pierre Desbois and Thierry
de Loppinot. Press conference The press conference will be
available via a live audio webcast on Friday, December 1, 2006 at
1.00PM at: http://www1.alcatel-lucent.com/conferences/day1/ 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 79,000 employees and 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 proforma combined revenues of Euro 18.6
billion in 2005, and is incorporated in France, with executive
offices located in Paris. Safe Harbor for Forward Looking
Statements Except for historical information, all other information
in this press release consists of forward-looking statements within
the meaning of the US Private Securities Litigation Reform Act of
1995, as amended. These forward looking statements include
statements regarding the future financial and operating results of
Alcatel-Lucent as well as the benefits and synergies of the
completed merger transaction and other statements about
Alcatel-Lucent managements' future expectations, beliefs, goals,
plans or prospects that are based on current expectations,
estimates, forecasts and projections about Alcatel-Lucent, as well
as Alcatel-Lucent's future performance and the industries in which
Alcatel-Lucent operates, in addition to managements' assumptions.
Words such as "expects," "anticipates," "targets," "goals,"
"projects," "intends," "plans," "believes," "seeks," "estimates,"
variations of such words and similar expressions are intended to
identify such forward-looking statements which are not statements
of historical facts. These forward-looking statements are not
guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to assess.
Therefore, actual outcomes and results may differ materially from
what is expressed or forecasted in such forward-looking statements.
These risks and uncertainties are based upon a number of important
factors including, among others: difficulties and delays in
achieving synergies and cost savings; fluctuations in the
telecommunications market; the pricing, cost and other risks
inherent in long-term sales agreements; exposure to the credit risk
of customers; reliance on a limited number of contract
manufacturers to supply products we sell; the social, political and
economic risks of our global operations; the costs and risks
associated with pension and postretirement benefit obligations; the
complexity of products sold; changes to existing regulations or
technical standards; existing and future litigation; difficulties
and costs in protecting intellectual property rights and exposure
to infringement claims by others; and compliance with
environmental, health and safety laws. For a more complete list and
description of such risks and uncertainties, refer to
Alcatel-Lucent's Form 20-F for the year ended December 31, 2005, as
amended, as well as other filings by Alcatel-Lucent and Lucent
Technologies Inc. with the US Securities and Exchange Commission
including Lucent's Proxy Statement dated August 7, 2006. Except as
required under the US federal securities laws and the rules and
regulations of the US Securities and Exchange Commission,
Alcatel-Lucent disclaims any intention or obligation to update any
forward-looking statements. * CY 2005 excluding the activities
transferred to Thales Alcatel Press Contacts Regine Coqueran Tel:
+33-1-40-7649-24 Mark Burnworth Tel: +33-1-40-76-50-84 Alcatel
Investor Relations Pascal Bantegnie Tel: +33-1-40-76-52-20 Maria
Alcon Tel: +33-1-40-76-15-17 Charlotte Laurent-Ottomane Tel:
+1-703-668-7016 Lucent Press Contacts Joan Campion +1-908-582-5832
(office) +1-201-761-9384 (mobile) MaryLou Ambrus +1-908-582-8501
(office) +1-908-239-6654 (mobile) Lucent Investor Relations John
DeBono +1-908-582-7793 (office) Dina Fede +1-908-582-0366 (office)
DATASOURCE: Alcatel CONTACT: Alcatel Press Contacts: Regine
Coqueran, Tel: +33-1-40-7649-24, ; Mark Burnworth, Tel:
+33-1-40-76-50-84, . Alcatel Investor Relations, Pascal Bantegnie,
Tel: +33-1-40-76-52-20, ; Maria Alcon, Tel: +33-1-40-76-15-17, ;
Charlotte Laurent-Ottomane, Tel: +1-703-668-7016, . Lucent Press
Contacts: Joan Campion, +1-908-582-5832 (office), +1-201-761-9384
(mobile), ; MaryLou Ambrus, +1-908-582-8501 (office),
+1-908-239-6654 (mobile), . Lucent Investor Relations: John DeBono,
+1-908-582-7793 (office), . Dina Fede, +1-908-582-0366 (office),
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