Companies increase 3G network’s reach and efficiency to ensure high quality and great coverage as demand for mobile broadband explodes in China

Shanghai, July 19, 2011 – Alcatel-Lucent (Euronext and NYSE: ALU) today announced it will  increase the efficiency and reach of China Unicom’s 3G network in over ten provinces to meet the rapidly rising demand for mobile broadband coverage in China.  This will ensure that high quality and widespread coverage are maintained for China Unicom’s customers as the number of subscribers rises.  The companies are also preparing the network to support even faster speeds in the future.

As a result of this agreement with Alcatel-Lucent China Unicom will be able to enhance the mobile broadband experience for their customers.  China Unicom’s subscribers in provinces including Zhejiang, Jiangsu and Fujian provinces will experience improved network quality and performance.

Rajeev Singh-Molares, President of Alcatel-Lucent’s activities in the Asia-Pacific Region, said “With demand for mobile broadband growing rapidly in China, Alcatel-Lucent’s expertise in network optimisation and our leading 3G solution will enable China Unicom to deliver mobile broadband services more efficiently at a lower cost even as subscriber numbers grow, to support the future introduction of 4G LTE mobile broadband speeds and services.

Under the agreement Alcatel-Lucent will expand the deployment of its GSM/W-CDMA solutionto provide China Unicom with a cost-effective mobile broadband network with the quality and capacity to meet the growing demands in China in preparation for the future introduction of LTE.  In more than ten provinces, Alcatel-Lucent will also provide optimization activities, allowing China Unicom the ability to monitor, troubleshoot and optimise network efficiency as subscribers increase, using a range of reporting capabilities, to ensure consistent quality for subscribers.

Alcatel-Lucent’s commercial W-CDMA contracts in the Asia-Pacific region include Mobicom China, Celcom Malaysia, Telecom New Zealand, SK Telecom, South Korea and KT Corp, South Korea.

About China Unicom

China United Network Communications Group Co.,Ltd (“China Unicom”) was officially established on 6 January 2009 on the basis of the merger of former China Netcom and former China Unicom. It has subsidiaries in 31 provinces (autonomous regions and municipalities) across China and many countries and regions around the world. It is the only Chinese telecom operator listed on the stock exchanges in New York, Hong Kong and Shanghai. With a modern communications network characterized by nationwide coverage and global reach, China Unicom mainly operates fixed and mobile communications service, domestic and international communications facilities, satellite IPLC service, data communications service, network access service, value-added telecom services and system integration service related to information and communications services. On 7 January 2009, China Unicom was granted a W-CDMA license. If you would like to know more about the Company, please visit www.chinaunicom.com.