-- New investment by China Huaxin to place Alcatel-Lucent Enterprise on a long-term growth trajectory

PARIS, Oct. 1, 2014 /PRNewswire/ -- Alcatel-Lucent (Euronext Paris and NYSE: ALU) today announced that it has successfully closed a transaction with China Huaxin Post & Telecommunication Economy Development Center ("China Huaxin") for the divestment of its Enterprise division. Cash proceeds to Alcatel-Lucent are Eur 202 million.

Following the divestment, Alcatel-Lucent will maintain a minority stake in a newly-formed holding company, to be incorporated in France. Alcatel-Lucent Enterprise will also continue to work with Alcatel-Lucent on a privileged business relationship basis.

The transaction will now enable Alcatel-Lucent Enterprise to benefit from a strong and recognized investor, providing the means and resources necessary to strengthen its ambition including leadership positions in enterprise communications while accelerating investment in new areas of net growth.

Alcatel-Lucent Enterprise will continue to invest and innovate in the core markets where it is already recognized as an undisputed leader, namely enterprise communications and networking – while exploring new market opportunities in select, high-growth countries, vertical solutions and cloud services.

At the same time, the business will work to define new opportunities aimed at growing the company into a leading player in next-generation enterprise communications, enabling an innovative shift from a pure technology-centric to outcome-based delivery model, capable of delivering measurable benefits from both an economical and human perspective for its partners and customers.

Commenting, Michel Emelianoff, Chief Executive Officer, Alcatel-Lucent Enterprise said: "As a 'new' company our core mission is to help companies transform the way people communicate, harnessing capabilities offered by ever smarter devices and new use models. We see success as creating long term value and customer relevancy by delivering business outcome to customers and partners through technology and business innovations. With such a dedicated investor, we now have the ability to execute on our ambition to become an essential player in the enterprise communications market and still be a reference for innovation and user experience."

Yuan Xin, Chairman, China Huaxin: "We are really excited by the acquisition of Alcatel-Lucent Enterprise. Our long-term investment approach will help Alcatel-Lucent Enterprise deliver on its ambition while enabling us to strengthen our strategic position in the enterprise communications arena. Alcatel-Lucent Enterprise has very strong assets and a recognized leadership in many markets across the globe. We are looking forward to leveraging our investment capabilities and experience to bring this business to the next level, both in size and market outreach."

Alcatel-Lucent Enterprise will have its headquarters in Colombes near Paris, France, with over 2,700 employees worldwide and with operations in more than 80 countries.

ABOUT CHINA HUAXIN

China Huaxin Post & Telecommunication Economy Development Center ("China Huaxin") is an industrial investment company that seeks long-term commercial growth opportunities in the Information and Communications Technologies (ICT) sector. China Huaxin has extensive global operations and international investment experience and has made investments in top-tier Chinese telecom suppliers such as Alcatel-Lucent Shanghai Bell and the Yangtze Optical Fiber & Cable Company Ltd. China Huaxin aspires to be a competitive global industry holding group that creates long-term value for its stakeholders and for society as a whole by nurturing and advancing technology innovation in the Information Industry.

ABOUT ALCATEL-LUCENT ENTERPRISE

Alcatel-Lucent Enterprise, with headquarters in France near Paris and 2700 employees worldwide, is a leader in communications, networking and cloud solutions for businesses of all sizes, serving more than 500,000 customers across the globe. Our cost-effective solutions help organizations embrace new uses and models by enabling multimedia conversations across any device, supported by an Application Fluent Network, from the office to the cloud.

Alcatel-Lucent Enterprise, with a history of proven technology and experience, leverages a global team of technology experts, service professionals, and partner ecosystem to meet the unique needs of small businesses to international companies with tailored offers that address the requirements of various market segments and industries.

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