Alcatel-Lucent announced that Non-Executive Chairman Serge Tchuruk has decided to step down on October 1, 2008. CEO Pat Russo has decided to step down no later than the end of the year, and at the Board’s request will continue to run the company until a new CEO is in place to effect a smooth transition and maintain the continuity of the company’s business. The Board will commence a search for a new non-executive Chairman and CEO immediately. The Board is also initiating a process to change the composition of the Board to a smaller group that will include new members.

Henry Schacht announced that he will resign from the Board immediately believing that, being a former CEO, he should not remain beyond the transitional stage of the merger. Mr. Schacht was the CEO of Lucent Technologies prior to Ms. Russo becoming CEO in January 2002.

For Q2 2008 Alcatel-Lucent annunced a revenue of $4.1 billion and a net loss of $222 million.